Buy the Chewy Stock Reversal? Here's Why Now Is the Time

Core Viewpoint - Chewy's stock price is currently low, presenting a potential buying opportunity as signs of growth and traction increase despite mixed reactions to recent financial results and guidance [1][2] Financial Performance - Chewy's FQ4 2024 results showed nearly 15% revenue growth, exceeding MarketBeat's consensus by 150 basis points, driven by increased marketing efforts [2] - The company reported a 2.1% increase in active customers and a 4.1% increase in sales per customer, with autoship revenue growing by 21.2%, contributing to 80.6% of quarterly sales [3] - Free cash flow increased by 133%, indicating strong financial health and potential for debt reduction or dividends [5] Guidance and Forecast - For 2025, Chewy forecasts organic revenue growth near 7%, with adjusted EBITDA margin expected to widen by nearly 200 basis points [6] - The 12-month stock price forecast is set at $38.68, indicating an 18.39% upside potential based on 23 analyst ratings [4] Analyst Sentiment - Analyst sentiment is bullish, with a consensus rating of Moderate Buy and a rising price target, reflecting improved coverage and sentiment among analysts [7] - The price action post-results showed mixed reactions, but support levels indicate potential for a breakout to new highs [8]