Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and The Motley Fool, highlighting their recommendations for Chewy and Salesforce [1] Company Analysis - The Motley Fool has positions in and recommends Chewy and Salesforce, indicating a positive outlook on these companies [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services, which could influence his opinions [1]

Core Viewpoint - JPMorgan analyst Doug Anmuth maintains an Overweight rating on Chewy, Inc. with a price target of $36, anticipating positive financial results for Q1 FY25 and an upward revision of FY25 outlook [1][2] Financial Performance Expectations - Chewy is expected to report Q1 net sales guidance between $3.06 billion and $3.09 billion, with a full-year net sales outlook of $12.30 billion to $12.45 billion [1] - Adjusted EBITDA margins are projected to be between 5.4% and 5.7% for FY25, with a year-over-year increase of 59 basis points [5] Revenue Growth and Customer Dynamics - Anmuth forecasts net customer additions of 104,000 sequentially in Q1 FY25 and 421,000 year-over-year for the full year [3] - Over 80% of Chewy's sales come from Autoship customers, providing strong revenue visibility and unit economics [3] Profitability and Revenue Diversification - Chewy's profitability is supported by advertising, product mix, automation, scale, and cost control, with projected free cash flow of $524 million, reflecting a 16% year-over-year increase [5] - The company is diversifying revenue through high-margin segments such as pharmacy, which has reached $1 billion on a trailing twelve-month basis, and international expansion [2] Market Trends and Traffic Insights - Chewy's web traffic increased by 4% year-over-year in Q1, with signs of improvement noted in May, although this is a decrease from 13% growth in the previous quarter [4] - Anmuth estimates a 6% year-over-year net sales growth for Q1 and 3% for FY25, which he considers conservative [4]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - Chewy Inc's stock has experienced a downgrade from "buy" to "hold" by Jefferies, despite an increase in the price target from $41 to $43, primarily due to valuation concerns [1] Group 1: Stock Performance - Chewy's stock is down 2.8% in pre-market trading [1] - The stock has increased by 113% over the last 12 months and 41.2% year-to-date [1] - The stock reached a two-year high of $47.55 on June 3 [1] - The 10-day moving average has served as a reliable support level during recent pullbacks [1] Group 2: Analyst Sentiment - A majority of analysts remain positive, with 20 out of 28 covering firms maintaining a "buy" or better rating [2] - There is potential for sentiment to shift if momentum fades [2] - Short interest has decreased by 17.2% in the last two weeks, with 7.8% of the float sold short, which could support future gains [2] Group 3: Options Market - Options are currently pricing in relatively low volatility, with Chewy's Schaeffer's Volatility Index (SVI) at 65%, placing it in the 29th percentile of its annual range [2] - This suggests that options premiums are affordable [2]

Company Overview - Chewy (NYSE:CHWY) is a prominent player in the pet e-commerce sector, offering food and supplies for various pets, and is expanding into personalized products, pet insurance, and telehealth services, with a market capitalization of $19 billion [3]. Financial Performance - Chewy is expected to report revenues of approximately $3.08 billion for the upcoming quarter, reflecting a year-over-year increase of about 7%, with anticipated earnings of around $0.34 per share [3]. - Over the past twelve months, Chewy generated total revenues of $12 billion, achieving operational profitability with $113 million in operating profits and a net income of $393 million [3]. Market Trends - The growth in Chewy's revenue is attributed to an expanding customer base and increased adoption of the Autoship subscription service, which allows customers to schedule regular deliveries of pet supplies [3]. Earnings Reaction Analysis - Historical data indicates that Chewy has recorded 18 earnings data points over the last five years, with 5 positive and 13 negative one-day (1D) returns, resulting in a positive return occurrence of approximately 28% [5]. - The percentage of positive returns increases to 36% when considering the last three years, with a median of 11% for positive returns and -8.1% for negative returns [5]. Investment Alternatives - For investors seeking reduced volatility compared to individual stocks, the Trefis High Quality portfolio has outperformed the S&P 500, achieving returns exceeding 91% since its inception [3][6].

The latest trading session saw Chewy (CHWY) ending at $47.62, denoting a +0.34% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.81%.The online pet store's stock has climbed by 25.52% in the past month, exceeding the Retail-Wholesale sector's gain of 3.83% and the S&P 500's gain of 4.61%.The upcoming earnings release of Chewy will be of great interest to investors. The company's earn ...

Core Viewpoint - The current market cycle has shifted towards value stocks, with Chewy Inc. positioned favorably due to its stable business model and customer base that remains resilient regardless of economic conditions [3][5][6]. Group 1: Market Cycle and Investment Sentiment - The market cycle is currently at an extreme, with rising bond yields and interest rates leading investors to seek safer value stocks [3][4]. - Chewy Inc. is highlighted as a potential investment due to its focus on stability and predictability in a volatile market [3][5]. Group 2: Institutional Investment and Stock Performance - BC Partners has initiated a significant position in Chewy, acquiring a stake worth up to $7.1 billion, representing 53.1% ownership [6]. - The short interest in Chewy stock has decreased by 17.2% over the past month, indicating potential bullish sentiment and institutional interest [7][8]. Group 3: Analyst Ratings and Price Forecast - Chewy's current price is $47.44, with a 12-month price forecast averaging $40.18, indicating a potential downside of 15.31% [10]. - Analyst Trevor Young from Barclays has reiterated an Overweight rating for Chewy, setting a price target of $50, suggesting an upside potential of 10.6% from the current price [10][11]. Group 4: Valuation Metrics - Chewy's P/E ratio is approximately 49.7, significantly higher than the retail sector average of 24.6, reflecting a premium valuation [12]. - The market often values companies like Chewy at a premium due to their perceived ability to outperform peers and the broader market [13].

Chewy (CHWY) closed at $44.12 in the latest trading session, marking a +1.87% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.38%.The online pet store's stock has climbed by 27.83% in the past month, exceeding the Retail-Wholesale sector's gain of 12.4% and the S&P 500's gain of 13.07%.Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earni ...

Core Insights - Chewy, Inc. is the largest pure-play online pet retailer in the U.S., boasting over 20 million active customers and estimated net sales of more than $1.2 billion in fiscal 2025 [1] - The company generates over 80% of its revenue from subscription-based auto ship customers, with approximately 85% of revenue coming from non-discretionary categories [1] - Chewy's profitability is on the rise, with expectations of nearly 5.5% adjusted EBITDA margins and around $525 million in free cash flow for the current year [2] Management Changes - David Reeder, the CFO of Chewy, announced his departure to return to the semiconductor industry as a CEO after just over a year in the role [4] - Reeder has a background in the semiconductor industry, having started his career as a chemical engineer over thirty years ago [4] - Despite his departure, Reeder highlighted Chewy's continued growth in active customers and net sales, as well as the high predictability of revenue from subscriptions [4]

Chewy (CHWY) FY Conference May 14, 2025 10:00 AM ET Speaker0 All right. We are going to go ahead and get started. I'm Doug Anmuth, JPMorgan's Internet analyst. We're pleased to have with us Chewy's CFO, David Reeder. Chewy is the largest pure play online pet retailer in The U. S. With more than 20,000,000 active customers. We estimate more than $1,200,000,000 in net sales in fiscal 'twenty five. More than 80% of revenue is generated by subscription based auto ship customers and about 85% comes from nondiscr ...