Core Insights - Chewy Inc. is set to release its first-quarter fiscal 2025 earnings results on June 11, with investors contemplating whether to buy or hold the stock [1] Group 1: Company Performance and Expectations - Chewy has established a strong presence in the online pet retail market, focusing on innovation and customer loyalty, which positions the company for long-term growth [2] - The Zacks Consensus Estimate for first-quarter revenues is $3.08 billion, reflecting a 6.9% increase from the previous year, while the earnings estimate remains at 34 cents per share, indicating a 9.7% year-over-year rise [3][8] - Chewy has a trailing four-quarter earnings surprise of 19.3%, with the last quarter surpassing the Zacks Consensus Estimate by 33.3% [4] Group 2: Key Growth Drivers - The growth in Chewy's revenue is supported by its Autoship program, which encourages repeat purchases and stabilizes revenue streams [10] - Active customer growth is a positive indicator, with the Zacks Consensus Estimate suggesting an increase to 20.5 million active customers, driven by improved digital experiences and the Chewy+ Membership Program [11] - Chewy's expansion into higher-margin areas, such as its in-house ad platform and veterinary services, is enhancing customer acquisition and engagement [12] Group 3: Market Position and Valuation - Chewy's stock has increased by 22.1% over the past month, outperforming the industry average of 1.2% [13] - The company trades at a forward 12-month price-to-sales (P/S) ratio of 1.57, which is lower than the industry average of 2.00, indicating a favorable investment opportunity [16] - Chewy's valuation is higher than competitors like Central Garden & Pet Company, Petco Health and Wellness Company, and BARK, which have lower P/S ratios [17] Group 4: Investment Considerations - Chewy's investments in automation, advertising, and veterinary services reflect a commitment to long-term growth, although the lack of a clear earnings beat signal may lead to cautious investment decisions [19]

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]