Chewy(US:CHWY) The Motley Fool·2026-02-17 02:10Core Viewpoint - Chewy (CHWY) is currently trading at $24.23 per share, making it an attractive option for long-term investors despite recent stock performance challenges [1][4]. Financial Performance - Chewy's stock has seen a decline, with average annual returns of -35.31% over the past year, 18.64% over the past three years, and 27.19% over the past five years [3]. - The company reported a revenue increase of 8.3% year over year in its third-quarter results, with gross profit margins rising by 0.5 percentage points [8]. Market Position - Chewy has a market capitalization of $10 billion and a current price-to-earnings (P/E) ratio of 24, significantly lower than its five-year average of 73 [5][8]. - The price-to-sales ratio stands at 0.82, also below its five-year average of 1.35, indicating a potentially undervalued stock [8]. Customer Loyalty and Revenue Streams - Chewy's Autoship service has been a significant contributor to its revenue, accounting for 84% of total revenue, showcasing strong customer loyalty [5][8]. - Net sales per active customer have been gradually increasing, indicating a positive trend in customer engagement [8]. Investment Potential - If Chewy continues to grow at 8%, an investment of $12,000 annually could yield substantial returns over time, potentially reaching over $3 million in 40 years [5]. - While Chewy is not expected to be the sole driver of wealth accumulation, it is positioned as a promising growth stock within a diversified portfolio [6].