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]

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 ...

Group 1 - Chewy will be added to the S&P MidCap 400, replacing Stericycle, which is being acquired by Waste Management [2] - The inclusion in the index is expected to boost Chewy's stock as ETFs tracking the S&P MidCap 400 will buy its shares [2] - S&P Global's decision reflects confidence in Chewy's financial viability and overall business performance [3] Group 2 - Chewy's revenue growth has slowed, with a 2.6% increase in Q2 to $2.86 billion, although profits improved due to cost control [4] - The pet products industry is showing signs of recovery after a post-pandemic slump, indicating potential for Chewy's growth [5] - Inclusion in the mid-cap index positions Chewy closer to potentially joining the S&P 500, contingent on significant growth [4]

Core Viewpoint - The article emphasizes that investing in quality stocks remains a favorable strategy, particularly in the context of growth stocks that have shown mixed performance amid economic uncertainties [1][2]. PayPal - PayPal Holdings has seen its shares increase by approximately 30% since the start of 2024, despite a slight decline following its recent earnings report [3][4]. - The company has faced challenges post-pandemic, including difficult year-over-year comparisons and stalling user growth, which led to some investors selling off the stock [4][5]. - In Q3, PayPal reported a 6% increase in net revenue to $7.8 billion and a 19% rise in operating income to $1.4 billion, although active accounts grew only 1% [7]. - Total payment volume increased by 9%, and payment transactions per active account also rose by 9% on a trailing-12-month basis [8]. - The company generated a net income of $1.1 billion, a slight decrease of 1% from the previous year, and cash from operations totaled $1.6 billion [8][9]. Chewy - Chewy's shares have surged by about 67% over the last six months, indicating renewed investor interest in the e-commerce platform for pet products [10]. - The company has diversified its offerings, including pet health insurance and telehealth services, to enhance competitiveness in the pet spending market [11][12]. - Chewy has opened brick-and-mortar veterinary locations, which align with its long-term strategy and have shown promising early indicators for customer acquisition and engagement [13][14]. - In Q2, Chewy's net sales rose by 2.6% to $2.86 billion, with net income soaring by 1,380% to over $299 million [15]. - Autoship sales accounted for 78% of net sales, reflecting a 6% increase from the previous year, and 85% of net sales came from consumables and health categories, which are considered non-discretionary [15][16].

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 ...

Core Viewpoint - Keith Gill, known as "Roaring Kitty," has divested his entire stake in Chewy after initially acquiring a 6.6% ownership, which raised concerns about stock volatility among existing shareholders [1][2]. Group 1: Investment Details - In July, Gill purchased over 9 million shares of Chewy, valued at more than $230 million at that time [2]. - Chewy's stock price was $26.54 per share as of mid-morning Wednesday, reflecting a year-to-date increase of 18.47% [1]. Group 2: Market Impact and Concerns - Gill's investment raised concerns among Chewy's management regarding potential volatility affecting institutional investors, as his following could lead to increased trading activity [3]. - The connection between Gill's investments in Chewy and GameStop is noted, as Ryan Cohen, the founder of Chewy, is also the CEO of GameStop [2]. Group 3: Background on Keith Gill - Gill gained fame through social media, particularly for his cat memes and YouTube streams, which significantly influenced GameStop's stock price in 2021 [3][4]. - His actions have led to a cult-like following among retail investors, impacting market dynamics [4].