Core Viewpoint - Chewy's stock has been stagnant since the 2022 bear market, but improvements in business conditions and new revenue streams may lead to a recovery in 2026 [1][2][10] Current Position of Chewy - Chewy competes with larger online retailers like Amazon, leveraging low prices, fast shipping, supplier relationships, and data analytics to offer competitive products [4] - The company stands out due to its excellent customer service, fostering customer loyalty and enhancing the popularity of its Autoship service, which provides a steady revenue stream [5] Financial Performance - In the first nine months of fiscal 2025, Chewy reported over $9.3 billion in net sales, an 8% increase from the same period in fiscal 2024 [6] - Costs and expenses grew at a slower pace than revenue, but a $216 million income tax benefit in 2024 resulted in a net income of $184 million, significantly lower than the $371 million from the previous year [7] - Chewy's forward P/E ratio is approximately 28, slightly below the S&P 500 average P/E of 31, indicating potential for profit growth despite recent challenges [8] Future Outlook - Analysts forecast an 8% revenue increase in fiscal 2027, suggesting that as investors recognize these improvements, the likelihood of a stock recovery in 2026 increases [9] - Chewy's efforts to develop new revenue sources have positioned the company for growth, with financials on a positive trajectory [10][11]