We recently published an article titled 12 High Growth E-commerce Stocks To Buy.  On January 13, Morgan Stanley raised its price target on Chewy to $51 from $48 while maintaining an Overweight rating on the shares. In a broader note on the North America Internet sector, the firm highlighted that 2026 is likely to resemble 2025, with investors favoring companies that can demonstrate meaningful returns on invested capital, particularly those leveraging GenAI- or GPU-enabled technologies. Within this framewo ...

It's been a tough past five years for online pet supply store Chewy's (NYSE: CHWY) shareholders. While the stock soared during and because of the onset of the COVID-19 pandemic, it peaked in early 2021. The stock now trades down more than 80% from that high, in fact, after peeling back from a failed recovery effort in 2024. Investors are understandably losing hope. This may be the exact right time to take a fresh look at this scrappy small cap, though. Its growth rate still isn't heroic, but its long-ter ...

Chewy and Dutch Bros are two top growth stocks to buy in February.The tech space isn't the only sector to find attractive stocks to buy this month. Consumer stocks also have some attractive growth options. Let's look at two stocks to buy this month. ChewyE-commerce pet retailer Chewy (CHWY 4.58%) is a nice combination of a growth stock with a recession-resistant business. Meanwhile, the stock is attractively valued, trading at a forward price-to-earnings (P/E) multiple of just 18.5 times fiscal 2026 estimat ...

Ryan Cohen’s investment experience, at least as it relates to his ability to run a holding company that invests in both public and private companies, began after he sold Chewy (CHWY), the online pet products business he co-founded, to PetSmart in 2017 for $3.35 billion.By 1969, Buffett closed the partnership, telling his limited partners that there weren’t enough good investments available due to the lengthy market run-up. Over the 13 years of the partnership, his limited partners received a cumulative retu ...

You probably know Chewy as an online retailer of pet products, but it also offers pet insurance. Chewy partners with Lemonade (3 stars) and Trupanion (2.3 stars) — two of the biggest pet insurers — to offer comprehensive pet insurance through its CarePlus suite of wellness and insurance plans. Learn more: The best pet insurance companies Chewy pet insurance pros and cons Pros Option for unlimited annual coverage through Trupanion 100% coverage for prescription food and medications purchased from C ...

Core Insights - Chewy is a niche player in the pet industry, while Walmart offers a broader range of retail products, including pet supplies [1][2] - The pet care market is projected to grow at a 5.1% CAGR until 2030, but Chewy's reliance on the low-margin pet industry raises concerns about its growth potential compared to Walmart [2][3] Company Performance - Chewy has low net profit margins, typically in the low single digits, while Walmart's margins range from 3% to 4% [3][11] - Chewy is diversifying into pet health, which has a higher average net profit margin of 20%, and currently operates over 20 veterinary practice locations [4] - Chewy's stock has decreased by nearly 70% over the past five years, reflecting challenges in maintaining growth post-pandemic [10] Financial Metrics - Chewy's current market cap is $12 billion, with a P/E ratio of 67, while Walmart's market cap is $950 billion with a P/E ratio of 42 [5][9][10] - Walmart's revenue growth was 5.8% year-over-year in Q3 FY26, compared to Chewy's 8.3% in its third quarter of fiscal 2025 [8] - Walmart's global advertising sales increased by 53% year-over-year in Q3 FY26, providing potential for profit growth despite low sales growth [7] Competitive Position - Chewy offers pure exposure to the pet industry, but Walmart's broader customer base and competitive advantages position it for higher long-term gains [12]

Chewy Inc (NYSE:CHWY) is one of the best large cap stocks under $100 with huge upside potential. As of January 23 closing, sentiment towards Chewy Inc (NYSE:CHWY) remains highly bullish. The stock received coverage from 18 analysts, 16 of whom have assigned Buy ratings and 2 have given Hold calls. It offers roughly 49% upside potential to investors based on a $47.19 median 1-year price target. Etsy (ETSY) Hits Fresh High on Transfer to NYSE Trading Pixabay/Public domain On January 6, Shweta Khajuria fr ...

There are multiple reasons you might want to invest in shares of Chewy (NYSE: CHWY) stock. A key one, to me, is its valuation. Its recent forward-looking price-to-earnings (P/E) ratio of 24 is well below its five-year average of 73, and the recent price-to-sales ratio of 1.1 is well below the stock's five-year average of 1.4. The stock has not been a phenomenal performer lately, though, with its shares averaging annual losses of 21% over the past five years. Thus, you should be quite confident that it wi ...

Key Points Chewy boosted its revenue and net profit margins while offering more than 130,000 pet products. Its expansion into high-margin business categories is commendable, but the entire pet industry is known for low margins. A high valuation and limited opportunities to expand net profit margins may mean it's better to stay on the sidelines. 10 stocks we like better than Chewy › Chewy (NYSE: CHWY) leverages e-commerce to boost sales for more than 130,000 pet products, but that hasn't been enou ...

Core Viewpoint - Chewy is a successful company in the pet product e-commerce space, but its stock performance has been disappointing, with a decline of over 70% in the past five years, indicating caution for potential investors [1]. Financial Performance - Chewy reported an 8.3% year-over-year revenue growth in Q3 2025, maintaining this growth rate for the previous two quarters, although revenue growth has been slowing over the last three years [3][6]. - The company's net profit margins are low, with figures of 0.4% for fiscal 2023, 3.3% for fiscal 2024, and 1.9% for Q3 2025, which is significantly lower than high-growth tech companies [5][6]. Market Position and Strategy - Chewy is focusing on increasing profit margins by targeting high-margin opportunities, such as health and wellness, and has acquired SmartEquine to enter the profitable equine health market [7]. - The acquisition of SmartEquine aligns with Chewy's strategy to enhance annual recurring revenue and customer lifetime value, making some revenue streams more predictable [8]. Competitive Landscape - The pet industry is characterized by low profit margins, and Chewy's competitors, such as Trupanion, Freshpet, and Petco, also exhibit low-single-digit net profit margins [8]. - Chewy's entry into vet care may improve margins, but it faces competition from Petco, which operates in the same space with similarly low margins [9]. Valuation Concerns - Chewy's stock currently trades at a P/E ratio of 67, which is considered expensive relative to its growth rate, suggesting that investors should remain cautious until profitability improves and valuation decreases [10].