Key Points Chewy has one of the best business models in retail. The company is seeing both solid growth and gross margin expansion. Meanwhile, the stock is attractively valued compared to peers. These 10 stocks could mint the next wave of millionaires › Chewy (NYSE: CHWY) is the type of stock the market doesn't pay nearly enough attention to because it's in a category that doesn't grab headlines. The company isn't chasing some cutting-edge technology like artificial intelligence (AI) or quantum co ...

Core Insights - The number of pet-owning households is projected to grow by 1% annually through 2027, indicating a stable market for pet-related products and services [2] - Chewy (NYSE:CHWY) is well-positioned to capture a significant share of consumer spending in the pet industry, benefiting from the anticipated growth in pet ownership [2] Industry Summary - The pet industry is experiencing a recovery post-COVID, with a consistent increase in pet-owning households expected over the next few years [2] - The growth in pet ownership suggests a positive outlook for companies operating in the pet sector, particularly those focused on e-commerce and direct-to-consumer sales [2] Company Summary - Chewy is identified as a key player in the pet industry, likely to benefit from the increasing pet ownership and consumer spending [2] - MoffettNathanson has raised its outlook on Chewy, indicating confidence in the company's ability to capitalize on market trends [2]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements [1] Upgrades - Argus upgraded Ulta Beauty (ULTA) to Buy from Hold with a price target of $570, noting the company's fourth consecutive earnings beat despite underperforming the S&P 500 and industry ETF IYC over the past quarter [2] - Scotiabank upgraded CrowdStrike (CRWD) to Outperform from Sector Perform with a price target of $600, increased from $440, highlighting that CrowdStrike is "more competitively entrenched than ever" in core endpoint security [2] - BNP Paribas Exane upgraded Arista Networks (ANET) to Outperform from Neutral with a price target of $172, up from $125, identifying the company as a "key beneficiary" of the multi-year AI data center capex supercycle [2] - MoffettNathanson upgraded Chewy (CHWY) to Buy from Neutral with a price target of $48, indicating that the recovery in pet household formation will reduce volatility in Chewy's quarterly customer additions, although the path to above-consensus customer additions and adjusted EBITDA in FY26 "will not be linear" [2] - Seaport Research upgraded Intel (INTC) to Neutral from Sell without a price target, suggesting that while Intel is facing challenges, the stock may benefit from follow-on investments and potential near-term "stop-gap solutions" [2]

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.Considering buying CHWY stock? Here’s what analysts think: Read This Next: Photo via ShutterstockLoading...Loading... ...

Group 1 - Chewy is focusing on market share and customer loyalty for long-term success, despite short-term earnings dips [1][2] - The company's strategy has shifted from rapid growth to nurturing loyalty and recurring purchases, with Chewy+ and autoship programs showing steady growth [1][5] - Chewy reported net sales of $3.1 billion in Q2 2025, an 8.6% increase year-over-year, with autoship accounting for 83% of total net sales and growing 15% year-over-year [4][6] Group 2 - Chewy's customer base has grown to 21 million active customers, spending an average of $591 per year, capturing 41% of the online pet supply market [6] - The company stands out due to its early adoption of autoship and e-commerce, outperforming brick-and-mortar competitors like Petco and PetSmart [7] - Recent quarterly reports showed a decline in earnings due to a one-time tax break in 2024, but other metrics like gross margin improved, growing 90 basis points to 30.4% [10]

Group 1 - Chewy has developed strong brand loyalty by effectively serving pet parents, which contributes to a more manageable business model [1] - This brand loyalty makes Chewy less volatile for investors, indicating a stable investment opportunity [1]

Core Viewpoint - Both Carnival and Chewy are experiencing revenue growth and present strong long-term investment opportunities in the consumer goods sector [1][2]. Group 1: Carnival - Carnival, the largest cruise operator, faced significant challenges during the pandemic, leading to a substantial increase in debt [4]. - The company has made progress by replacing older ships with fuel-efficient vessels, enhancing onboard spending strategies, and focusing on debt repayment, particularly variable-rate borrowings [4]. - Recent financial performance includes record revenue of $6.3 billion and customer deposits reaching $8.5 billion, with advanced bookings for next year matching record levels at higher fares [5]. - Carnival has exceeded financial targets in its turnaround plan, achieving the highest adjusted return on invested capital in over 20 years [6]. - Lower interest rates are expected to facilitate debt repayment and encourage consumer spending on cruises [7]. Group 2: Chewy - Chewy is a leading e-commerce platform for pet supplies, with a loyal customer base supported by its Autoship service, which accounts for 83% of overall sales [8]. - The company reported a sales increase of over 8% to $3.1 billion, with Autoship sales climbing 15% [9]. - Chewy has diversified its revenue by opening veterinary clinics, allowing it to introduce e-commerce services to new customers [10]. - The company maintains a strong financial position with no debt and over $590 million in cash [11]. - Chewy's loyal customer base, as evidenced by Autoship metrics, positions it well for long-term success despite competition [11]. Group 3: Investment Comparison - Both Carnival and Chewy are considered reasonably priced, with Carnival trading at 15 times forward earnings estimates and Chewy at 29 times [12]. - The high debt level of Carnival poses a risk, while Chewy's debt-free status is viewed favorably [14][15]. - If only one stock could be chosen, Chewy is preferred due to its lack of debt and strong customer loyalty [15].

Core Viewpoint - Chewy's stock has increased over 150% in the past 18 months, and despite a recent earnings report that led to a temporary drop in shares, the underlying business remains strong and presents a compelling investment opportunity [1][2]. Financial Performance - Chewy's shares rose 11% in one week following a brief sell-off after its earnings report, indicating a recovery in investor sentiment [1][2]. - The company has achieved a 10% annualized growth rate over the last three years, which is a positive indicator for future performance [6]. Customer Satisfaction and Brand Strength - Chewy ranks as the 29th top brand among millennials and holds the No. 1 position on Forrester's Customer Experience Index, reflecting its strong customer service and brand loyalty [4][6]. - The company's customer satisfaction has fostered a loyal customer base, which is essential for building a robust ecosystem around its offerings [6]. Business Ecosystem - Chewy has developed a comprehensive pet care ecosystem, including the Chewy+ membership program, 12 Chewy Vet Care clinics, a popular autoship service, and a leading position in U.S. pet pharmaceutical sales [6]. - The company is also expanding its range of private label products, further solidifying its position as a one-stop shop for pet needs [6]. Valuation Metrics - Chewy is currently trading at 30 times forward earnings, which, combined with its rising profit margins and growing ecosystem, suggests that the stock is attractively valued [6].

Core Thesis - Chewy, Inc. presents a compelling investment opportunity due to its strong fundamentals, consistent revenue growth, and loyal customer base, despite recent stock price declines [4]. Company Overview - Chewy, Inc. is an online retailer specializing in pet food and pharmacy products, known for exceptional customer loyalty and service [2]. - The company operates primarily in the U.S. with some presence in Canada and has significant potential for international expansion, particularly in Europe [2]. Business Model - Chewy's auto-shipping model creates a highly sticky user base, ensuring repeat customers and enhancing customer loyalty [2][5]. - The company's customer service approach, while costly, is difficult to replicate with AI, providing a competitive moat against rivals [3]. Financial Performance - Chewy has consistently grown revenue year-over-year and maintained profitability for several years, reflecting the resilience of its business model [3]. - As of September 12th, Chewy's share was trading at $34.66, with trailing and forward P/E ratios of 96.28 and 28.09 respectively [1]. Challenges and Opportunities - Challenges include high executive compensation relative to company size, slow European market entry, and costs associated with a service-intensive business model [3]. - Despite potential margin pressures, these factors may reinforce customer preference for Chewy over lower-service alternatives [4]. Market Positioning - The recent stock price decline is viewed as an attractive entry point for long-term investors, supported by robust fundamentals and strong market positioning [4]. - Chewy's loyal and expanding customer base, pricing competitiveness, and potential for international growth contribute to a positive outlook [4].

Core Insights - Chewy, Inc. (NYSE:CHWY) reported a strong earnings quarter, but the stock was negatively impacted due to not meeting the "whisper number" that bullish hedge funds anticipated [1] - Despite higher Selling, General and Administrative (SG&A) expenses, the main issue was the expectations set by analysts and investors [1] Company Overview - Chewy, Inc. operates an online platform providing a variety of pet-related products, including food, treats, supplies, medications, and health products [2]