Chewy-Got $1,000? 2 Top Growth Stocks to Buy Right Now

Core Insights - Long-term investing is preferable to market timing, which is often ineffective [1] - Growth stocks can be volatile but offer significant returns if backed by strong businesses [2] Company Analysis: Eli Lilly - Eli Lilly has seen a resurgence in growth due to its GLP-1 drugs, with a 118% increase in annual profitability and a 71% increase in revenue over the past decade [3][4] - The company currently pays an annual dividend of $6 per share, yielding approximately 0.75%, with a payout ratio of about 54% [5] - Eli Lilly's drug portfolio includes successful treatments across various disease areas, with recent approvals for Kisunla, Ebglyss, and Omvoh expected to drive growth [6][7][8] - Preliminary revenue estimates for 2024 indicate a 32% increase compared to 2023, totaling$ 45 billion, despite a slight downward revision from previous guidance [9] - For the first nine months of 2024, Eli Lilly reported $32 billion in revenue, a 27% increase year-over-year, and net income of approximately$ 6.2 billion, doubling the previous year's profits [10] - The demand for Eli Lilly's products positions it well for continued growth and profitability [11] Company Analysis: Chewy - Chewy operates a pet e-commerce platform, with its Autoship subscription service accounting for 80% of net sales, totaling $2.3 billion in Q3 2024, a 9% increase from the previous year [12][14] - The majority of Chewy's sales come from non-discretionary purchases, which made up 85% of net sales in Q3 2024 [16] - Chewy is expanding its revenue sources through online pet pharmacy services, telehealth, health insurance, and a new advertising program expected to contribute 1% to 3% of net sales in fiscal 2024 [17] - The company is also opening vet clinics across the U.S., with six already operational, targeting a$ 25 billion addressable market [18][19] - Despite heavy investments in growth, Chewy generated $4 million in net income in Q3 2024, indicating resilience in its business model [20]