Core Viewpoint - Chewy Inc. is preparing to announce its Q3 fiscal 2024 earnings, with a focus on its growth trajectory and strategic initiatives, raising questions about its investment viability at this stage [1] Financial Performance - The Zacks Consensus Estimate projects revenues of $2.86 billion for the upcoming quarter, indicating a 4.5% increase year-over-year [2] - The consensus estimate for earnings is 23 cents per share, reflecting a significant 53.3% year-over-year increase, with Chewy having an average earnings surprise of 50.9% over the past four quarters [3] Market Position and Strategy - Chewy is adapting to market dynamics, enhancing its position in the growing pet care sector through an expanding customer base and diversified service offerings, including veterinary clinics and pharmacy services [6] - The company is broadening its inventory to meet customer preferences, supported by strategic promotions and targeted marketing initiatives [7] - The success of the Autoship program is expected to drive revenues and improve customer retention, simplifying the purchasing process and maintaining a steady revenue stream [8] Expansion and Innovation - Chewy has opened two additional Vet Care clinics, increasing the total to six, which enhances customer loyalty and serves as entry points for new customers [9] - The Sponsored Ads program is contributing to revenue growth, with increasing advertiser demand and improved click-through rates, while enhancements to the mobile app are driving customer acquisition and order frequency [10] Stock Performance - Chewy's stock has surged 50.1% over the past six months, outperforming the industry growth of 19.4% and its close competitors [11] Valuation - Chewy shares are trading at a forward 12-month price-to-sales ratio of 1.14, below the five-year median of 1.63 and the industry's average of 1.80, presenting an attractive opportunity for investors [13] Investment Thesis - Chewy's stock price appreciation, strong financial metrics, and strategic initiatives underscore its growth potential, with a focus on innovation through the Autoship program and pharmacy services likely driving revenue growth [16] - The company's diversified services and strategic marketing initiatives align with evolving consumer preferences, enhancing customer engagement and revenue potential [17]

For Immediate ReleasesChicago, IL – November 29, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Sprouts Farmers Market, Inc. (SFM) , Deckers Outdoor Corp. (DECK) , Chewy, Inc. (CHWY) and Torrid Holdings Inc. (CURV) .Here are highlights from Friday’s Analyst Blog:4 Retail Stocks to Buy as Consumer Co ...

Key TakeawaysSprouts Farmers Market, Deckers Outdoor, Chewy and Torrid Holdings are strong retail stocks to buy now.Retail stocks may gain as US consumer confidence has grown for the past two months, hitting an 18-month high.Register now to see our 7 Best Stocks for the Next 30 Days report - free today!U.S. consumer confidence — a key determinant of the economy’s health — improved in back-to-back months. According to the Conference Board, the Consumer Confidence Index surged to 111.7 in November 2024, follo ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Chewy (CHWY) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on December 4, 2024, might help the stock move higher if these key numbers are better than expecta ...

Company Performance - Chewy (CHWY) has returned 46.5% year-to-date, outperforming the Retail-Wholesale sector average of 27.8% [4] - The Zacks Consensus Estimate for Chewy's full-year earnings has increased by 39.1% over the past 90 days, indicating improved analyst sentiment [3] - Chewy currently holds a Zacks Rank of 2 (Buy) [3] Industry Comparison - Chewy belongs to the Internet - Commerce industry, which has 39 stocks and is ranked 74 in the Zacks Industry Rank [5] - The Internet - Commerce industry has gained an average of 32.1% year-to-date, with Chewy outperforming this average [5] - Petco Health & Wellness (WOOF), another Retail-Wholesale stock, has returned 33.9% year-to-date, also outperforming the sector average [4] Peer Analysis - Petco Health & Wellness falls under the Retail - Miscellaneous industry, which has 17 stocks and is ranked 163 in the Zacks Industry Rank [6] - The Retail - Miscellaneous industry has declined by 2.3% year-to-date, while Petco Health & Wellness has shown positive performance [6] - Petco Health & Wellness' consensus EPS estimate for the current year has increased by 4.1% over the past three months and holds a Zacks Rank of 2 (Buy) [5] Sector Overview - The Retail-Wholesale group consists of 210 companies and is ranked 7 within the Zacks Sector Rank [2] - The Zacks Sector Rank includes 16 groups, ranked based on the average Zacks Rank of individual companies within each sector [2]

Retail investors often feel on the outside of the stock market since information can often be hard to access and digest when the factors and trends to be identified aren’t too clear-cut. This is why looking at Wall Street analyst actions can be an important checklist for retail investors when looking at potential opportunities to put their capital to work. What is especially important to keep in mind is that analysts talk to each other, and they more or less have assumptions in mind that drive these stock v ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Chewy (CHWY) , which belongs to the Zacks Internet - Commerce industry.This online pet store has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 28.35%.For the last reported quarter, Chewy came out with earnings of $0.24 per share vers ...

Analyst Upgrade and Price Target - Bank of America analyst Curtis Nagle double upgrades Chewy shares from Underperform to Buy and raises the price target from $24 to $40 [1] - The upgrade is based on improving industry trends and earnings potential [2] Industry Trends and Growth - Animal shelters are taking in a large number of pets, but adoption trends have improved since the start of 2024 [3] - Pet spending appears to have bottomed after being negative year-over-year earlier this year [3] - Industry is expected to return to consistent low single-digit to mid single-digit (LSD%-MSD%) growth in the first half of 2025 [3] - Chewy's website traffic was up 6% year over year in the third quarter compared to down 11% year over year in the first quarter [3] Earnings and Expense Discipline - Chewy's expense discipline could lead to earnings growth that is being underestimated by investors and other analysts [2] - Since cost cuts in late 2023, Chewy has demonstrated strong expense discipline in SG&A and has scaled fulfillment expenses [4] - Advertising and health growth opportunities come with higher gross margins and could lead to significant earnings growth in the coming years [4] Business Model and Market Position - Chewy's subscription-like model should command a premium [5] - The company's low exposure to discretionary categories minimizes the impact of increased Chinese tariffs [5] - Chewy is predicted to beat the third-quarter Street estimate of 50,000 net adds for active customers, given pet industry trends and website traffic [5] - Over the last 10 quarters, the active customer count has been a leading indicator of stock movement [5] Stock Performance - Chewy stock is up 4 3% to $34 37 on Wednesday, versus a 52-week trading range of $14 68 to $39 10 [6] - Chewy stock is up 55% year-to-date in 2024 [6]

Core Insights - Chewy Inc (NYSE:CHWY) has experienced a 4.9% increase in stock price, reaching $34.54, following a double-upgrade from BofA Global Research to "buy" from "underperform," with a price target raised to $40 from $24 [1] - The firm highlighted an increase in pet adoption rates since the beginning of the year, while pet spending has hit a low point, indicating potential for a rebound [1] - Increased web traffic has also contributed to the positive outlook for Chewy [1] Stock Performance - The stock has surpassed the $34 mark, which had previously limited rallies in mid-September and earlier this month [2] - Year-to-date, Chewy's equity has risen by 45.7%, supported by long-term support at the 120-day moving average since May [2] Options Activity - In the options market, call options are currently more favorable, with 9,575 calls traded today, while 3,766 puts exchanged represent double the typical put volume [3] - The most popular option is the weekly 11/22 34-strike call, with new positions being opened [3] - Over the past 10 weeks, options traders have shown increased bullish sentiment, with a 50-day call/put volume ratio of 5.55, ranking higher than all other readings in its annual range [4] Volatility and Pricing - Options for Chewy are currently reasonably priced, with a Schaeffer's Volatility Index (SVI) of 69%, which ranks in the 25th percentile of readings from the past 12 months, indicating low volatility expectations [5]

Core Viewpoint - Chewy Inc. has seen a remarkable stock increase of 95.5% over the past six months, establishing itself as a leader in the pet-focused e-commerce market, driven by the demand for subscription-based pet products [1] Group 1: Stock Performance - Chewy's stock closed at $32.96, which is 15.7% below its 52-week high of $39.10 reached on June 27, 2024 [3] - The stock has significantly outperformed the industry, which rose by 14.5%, as well as the Retail-Wholesale sector and the S&P 500 index, which gained 14.7% and 14.4% respectively [1] Group 2: Growth Drivers - Chewy's growth is supported by strong financial performance, strategic investments, and favorable market trends, including an expanding customer base and a recurring revenue model [5] - The Autoship program has been a key contributor, with a 5.8% year-over-year sales increase in Q2 2024, accounting for 78.4% of total net sales [7] - The expansion into veterinary care has resulted in the opening of two additional clinics, increasing the total to six, which enhances customer loyalty and contributes to a record Net Sales Per Active Customer (NSPAC) of $565, reflecting a 6.2% year-over-year growth [8] - Chewy's Sponsored Ads business is on track to reach its long-term target of 1% to 3% of net sales by the end of 2024, driven by increased inventory and advertiser demand [9] - The mobile app improvements led to a 13% year-over-year increase in unique customers placing orders and a 15% rise in overall mobile app orders [10] Group 3: Challenges and Market Dynamics - Despite its growth, Chewy faces challenges such as slowing growth, potential customer acquisition saturation, and rising cost pressures [11] - The active customer count showed only a modest increase, with expectations for flat growth in 2024 [11] - Chewy operates in a price-sensitive market, where competitors can quickly adjust pricing strategies, and inflationary pressures could impact margins [12] - The forward 12-month price-to-earnings ratio for Chewy stands at 27.18, higher than the industry average of 25.36 and the S&P 500's 22.7, indicating potential overvaluation [13] Group 4: Strategic Initiatives - Chewy's strategic initiatives, including the Autoship program, veterinary clinic expansion, and mobile app enhancements, have strengthened customer loyalty and boosted recurring revenues [14] - However, high operational costs and competition from companies like Petco, Central Garden & Pet, and BARK pose ongoing challenges [15]