Should You Still Buy Chewy Stock After Its 15% Rise in a Month?

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].