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]

Core Viewpoint - The pet industry is experiencing significant growth, with Chewy and Freshpet being two companies that have capitalized on this trend. Freshpet is considered the better buy due to its stronger growth rate compared to Chewy [1][12]. Group 1: Business Models - Chewy is a leading e-commerce company in the pet industry, known for its autoship program and a wide range of products, totaling about 115,000 stock-keeping units (SKUs) from 3,500 brands [3][4]. - Freshpet specializes in fresh, refrigerated pet food, with its products available in over 26,000 stores, focusing on premium quality to meet consumer demand [5][6]. - Both companies have established competitive advantages, with Chewy dominating e-commerce and Freshpet leading in fresh pet food [7]. Group 2: Financial Performance - Chewy reported a revenue growth of only 2.6% in the second quarter, reaching $2.86 billion, indicating a slowdown in growth compared to previous periods [8][9]. - In contrast, Freshpet achieved a remarkable 26% revenue growth to $253.4 million, marking its 25th consecutive quarter of at least 25% growth, alongside significant margin expansion [10]. Group 3: Valuation - Chewy has a price-to-earnings (P/E) ratio of 28, influenced by substantial stock-based compensation, while Freshpet's P/E ratio is significantly higher at 170 due to its growth track record [11]. - Neither company pays a dividend, which is a consideration for investors [11]. Group 4: Investment Recommendation - Freshpet is viewed as the better investment option due to its robust growth and effective scaling with new manufacturing capabilities, while Chewy is facing challenges in finding new growth avenues [12][13].

Many investors have no idea that this huge business is a major player in the pet space.The online pharmacy space for pets is growing at a strong rate and that's good news for Chewy (CHWY 6.34%). The company operates the go-to e-commerce platform for pets. Most investors are likely aware that it generates billions of dollars of sales annually from retail products. But fewer realize that pet health is a big business for Chewy as well.In 2023, Chewy Health was a business worth more than $3 billion, according t ...

Chewy will join the S&P MidCap 400 on Wednesday.Shares of Chewy (CHWY 8.52%), the leading online pet products seller, were gaining today after the company effectively got a vote of confidence from S&P Global, as it said after hours on Friday that Chewy would join the S&P MidCap 400.As a result, Chewy stock was up 8.3% as of 12:15 p.m. ET. Chewy earns a stamp of approvalS&P Global, which manages indexes including the S&P MidCap 400, said that Chewy would replace Stericycle on the mid-cap index, as Stericycle ...

It's always a great time to buy quality stocks.Growth stocks have faced mixed sentiment from investors over the last few years despite the prolonged bull market. Concerns about the economy and its impact on businesses across a range of sectors has persisted as many have waited for interest rates and inflation to gradually tamp back down.Great companies have continued to move on from the pandemic era in varying degrees, and investing in quality businesses for the long term can grow your portfolio in a wide r ...

NEW YORK, Nov. 1, 2024 /PRNewswire/ -- Chewy Inc. (NYSE: CHWY) will replace Stericycle Inc. (NASD: SRCL) in the S&P MidCap 400 effective prior to the opening of trading on Wednesday, November 6. S&P 500 constituent Waste Management Inc. (NYSE: WM) is acquiring Stericycle in a deal expected to be completed soon, pending final closing conditions.Following is a summary of the changes that will take place prior to the open of trading on the effective date: Effective Date Index Name       Action Company Na ...

Keith Gill, the famed meme stock trader and influencer known as "Roaring Kitty," no longer owns any shares of Chewy after taking a 6.6% stake in the company over the summer, according to a Tuesday filing with the Securities and Exchange Commission. Shares of Chewy were volatile on Tuesday, and down slightly as of mid-morning on Wednesday at $26.54 per share. The stock is up 18.47% year to date. Ticker Security Last Change Change % CHWY CHEWY INC. 26.55 -0.14 -0.51% Chewy Inc. In July, Gill purchased just ov ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Chewy (CHWY) closed the latest trading day at $27.09, indicating a -1.35% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.22% for the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.76%.The the stock of online pet store has fallen by 6.44% in the past month, lagging the Retail-Wholesale sector's loss of 0.42% and the S&P 500's gain of 1.47%.Investors will be eagerly watching for the performance of Chewy in its upcoming e ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, October 24:Okta, Inc. (OKTA) : This identity verification company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days.Okta has a PEG ratio of 1.23 compared with 2.80 for the industry. The company possesses a Growth Score of B.The Gap, Inc. (GAP) : This apparel retail company carries a Zacks Rank #1, and has witnessed t ...