Chewy(CHWY)

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Top 4 Retail Stocks to Buy Now Despite Weak Consumer Confidence
ZACKS· 2025-05-02 14:55
Economic Overview - U.S. consumer confidence has declined for the fifth consecutive month in April, with the Consumer Confidence Index dropping to 86, a decrease of 7.9 points from the previous month, falling short of market expectations [1][2] - This is the weakest level recorded in almost five years, indicating growing unease among consumers due to economic pressures such as trade tensions, rising tariffs, and fears over job security [2] Consumer Spending Impact - The Federal Reserve and financial markets are closely monitoring the decline in consumer sentiment, as consumer spending accounts for approximately 70% of U.S. GDP, suggesting that changes in spending patterns could significantly impact future economic growth [3] Company Adaptation Strategies - Companies like Sprouts Farmers Market, The Gap, Chewy, and Stitch Fix are better positioned to navigate the current economic challenges due to their solid business models and focus on value and essentials [4] Sprouts Farmers Market - Sprouts Farmers Market is focusing on product innovation, targeted marketing, and competitive pricing to expand its customer base and meet evolving consumer preferences, particularly in the health food segment [8] - The Zacks Consensus Estimate indicates a growth of 12.3% in sales and 28.8% in earnings per share (EPS) for the current financial year compared to the previous year [9] The Gap - The Gap is leveraging its broad brand portfolio and enhancing operational efficiency while driving digital transformation and investing in product innovation to maintain competitiveness [10] - The Zacks Consensus Estimate suggests a growth of 1.5% in sales and 7.7% in EPS for the current financial year compared to the previous year [11] Chewy - Chewy is enhancing its position in the online pet retail market through innovation and customer loyalty initiatives, such as the Autoship program, which secures predictable revenues [12] - The Zacks Consensus Estimate indicates a growth of 4.5% in sales and 18.3% in EPS for the current financial year compared to the previous year [13] Stitch Fix - Stitch Fix is improving its inventory management and expanding private brand offerings to enhance profitability while focusing on personalized client experiences [14] - The Zacks Consensus Estimate suggests a growth of 64.7% in the bottom line for the current financial year compared to the previous year [15]
2 Unstoppable Stocks to Buy and Hold for a Decade
The Motley Fool· 2025-05-01 08:30
Market swings like we have been seeing in March and April 2025 can make investors hesitant to put money to work in stocks. But as long as you're investing with a long-term mindset in stocks of growing companies, you're setting yourself up for tremendous returns over time.Shopify (SHOP -4.00%) and Chewy (CHWY 0.97%) are two companies that entered the year with momentum and still have huge opportunities to expand in e-commerce. Here's why these two unstoppable stocks could make rewarding investments for the n ...
Chewy (CHWY) Rises Higher Than Market: Key Facts
ZACKS· 2025-04-30 22:50
Core Viewpoint - Chewy is showing strong performance in the market, with significant gains in stock price and positive earnings forecasts, indicating investor confidence and potential growth opportunities. Group 1: Stock Performance - Chewy closed at $37.50, reflecting a +0.78% change from the previous day, outperforming the S&P 500's gain of 0.15% [1] - Over the past month, Chewy's shares increased by 11.14%, significantly surpassing the Retail-Wholesale sector's gain of 0.27% and the S&P 500's loss of 0.21% [1] Group 2: Earnings Forecast - Chewy is expected to report an EPS of $0.34, representing a 9.68% increase from the same quarter last year, with projected revenue of $3.07 billion, a 6.85% rise year-over-year [2] - For the entire year, the Zacks Consensus Estimates predict earnings of $1.23 per share and revenue of $12.4 billion, indicating increases of +18.27% and +4.52%, respectively, compared to the previous year [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Chewy reflect short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which assesses estimated changes, currently ranks Chewy at 2 (Buy), with the Zacks Consensus EPS estimate having increased by 3.83% in the past month [6] Group 4: Valuation Metrics - Chewy's Forward P/E ratio stands at 30.23, higher than the industry average of 23.44, suggesting that Chewy is trading at a premium [7] - The company has a PEG ratio of 3.2, compared to the Internet - Commerce industry's average PEG ratio of 1.41, indicating a higher valuation relative to expected earnings growth [8] Group 5: Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries, suggesting strong overall performance [8][9]
Has Chewy (CHWY) Outpaced Other Retail-Wholesale Stocks This Year?
ZACKS· 2025-04-30 14:46
Group 1 - Chewy (CHWY) has shown a year-to-date performance increase of approximately 11.1%, outperforming the Retail-Wholesale sector, which has returned an average of -3.5% [4] - Chewy is currently ranked 2 (Buy) in the Zacks Rank, indicating strong analyst sentiment and an improving earnings outlook, with a 0.8% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Internet - Commerce industry, to which Chewy belongs, has seen an average decline of 6.4% this year, further highlighting Chewy's relative strength within its industry [5] Group 2 - The Retail-Wholesale sector consists of 210 individual stocks and is currently ranked 11 in the Zacks Sector Rank [2] - Another stock in the Retail-Wholesale sector, Industria de Diseno Textil SA (IDEXY), has also outperformed the sector with a year-to-date increase of 7.5% [4] - The Retail - Apparel and Shoes industry, which includes Industria de Diseno Textil SA, is ranked 153 and has experienced a significant decline of -23.1% this year [6]
Should You Still Buy Chewy Stock After Its 15% Rise in a Month?
ZACKS· 2025-04-30 13:55
Core Viewpoint - Chewy Inc. (CHWY) has experienced significant stock performance, rising 14.5% in the past month, outperforming the industry which saw a decline of 2% [1][7]. Company Performance - Chewy's stock closed at $37.21, which is 7.2% below its 52-week high of $40.09, but it is trading above its 50 and 200-day moving averages, indicating a bullish trend [9][18]. - The company has returned to year-over-year active customer growth, ending fiscal 2024 with 20.5 million active customers, a 2.1% increase from the previous year [14]. Revenue Drivers - Chewy's Autoship program generated $2.62 billion in sales in Q4 of fiscal 2024, reflecting a 21.2% year-over-year increase and now represents 80.6% of total net sales [13]. - The company anticipates net sales for fiscal 2025 to be between $12.3 billion and $12.45 billion, indicating a year-over-year growth of 6% to 7% [17][19]. Market Position and Strategy - Chewy is transitioning from a pure-play e-commerce retailer to a diversified pet care platform, focusing on high-margin services and customer loyalty [6][21]. - The entry into the veterinary services market through Chewy Vet Care Clinics opens access to a $25 billion total addressable market, with plans to open 8 to 10 new clinics in fiscal 2025 [15]. Financial Health - Chewy reported free cash flow of $452.5 million in fiscal 2024 and ended the year with $597 million in cash and cash equivalents, remaining debt-free [16]. - The company has a forward 12-month price-to-sales (P/S) multiple of 1.22X, which is below the industry average of 2.09X, indicating a favorable investment opportunity [20].
Is Chewy an Excellent Growth Stock to Buy Now?
The Motley Fool· 2025-04-18 15:47
Core Insights - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends Chewy [1] Company Insights - The Motley Fool has a disclosure policy regarding its investment positions [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services [1]
The Zacks Analyst Blog Sprouts Farmers Market, BJ's Wholesale Club, Chewy and The Kroger
ZACKS· 2025-04-16 09:25
For Immediate ReleasesChicago, IL – April 16, 2025 – Zacks.com announces the list of stocks 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 Sprouts Farmers Market, Inc. (SFM) , BJ's Wholesale Club Holdings, Inc. (BJ) , Chewy, Inc. (CHWY) and The Kroger Co. (KR) .Here are highlights from Wednesday’s Analyst Blog:Consumer Sentiment Dips: 4 Prominent Stocks to B ...
Are Retail-Wholesale Stocks Lagging Chewy (CHWY) This Year?
ZACKS· 2025-04-14 14:45
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Chewy (CHWY) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Chewy is one of 210 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank gauges the s ...
eufy Launches Pet Monitoring Solutions and Smart Cleaning Technology at Chewy
GlobeNewswire News Room· 2025-04-09 14:18
About Eufy eufy smart home products and technologies - including home and property security devices and services and smart cleaning solutions - deliver expert protection and deep-cleaning capabilities tailored to your lifestyle. eufy looks beyond functional performance to meet the needs and enrich the lives of the people you care about the most. Care is what makes a house a home, and everything we build is "Built With Care" for you. Find more information at eufy.com. BELLEVUE, Wash., April 09, 2025 (GLOBE N ...
Chewy's Growth Is on Autopilot: The Power of Its $9.4 Billion Autoship Customer Sales
The Motley Fool· 2025-04-05 14:27
Core Insights - The core viewpoint is that Chewy has successfully capitalized on the trend of treating pets as family members, establishing itself as the leading seller of pet food and accessories [1] Revenue Growth - Chewy has more than doubled its revenue over the past five years, reaching $11.9 billion in sales for the latest fiscal year [2] - The company's revenue from customers participating in the Autoship program amounted to $9.4 billion, representing 79.2% of total revenue [5] Autoship Program - The Autoship program is a key component of Chewy's business model, allowing customers to schedule regular deliveries of frequently purchased items like pet food, medications, and kitty litter [3][4] - Autoship sales have consistently outpaced overall revenue growth, increasing from around 70% of sales in fiscal 2021 to just under 80% today [5] - In Q4, Autoship represented 80.6% of net sales, providing predictable revenue streams and enhancing customer loyalty [6] Competitive Advantage - Chewy's Autoship program creates a loyal customer base, offering predictable sales and higher spending per customer, which few other retailers can match [6][7] - The program allows Chewy to better manage rising costs and maintain profitability [6]