Core Insights - ClearBridge Investments reported that mid-cap stocks experienced growth in Q3 2025, driven by a favorable monetary policy environment and stabilizing earnings [1] - The Federal Reserve's rate cuts positively impacted small and mid-cap stocks, with value stocks outperforming growth stocks [1] - The ClearBridge Mid Cap Strategy outperformed the Russell Midcap Index, primarily due to stock selection in the consumer staples and healthcare sectors [1] Company Analysis: Chewy, Inc. (NYSE:CHWY) - Chewy, Inc. is an online retailer specializing in pet food, supplies, medications, and services, with a market capitalization of $13.689 billion as of November 12, 2025 [2] - The stock experienced a one-month return of -13.07% and a 52-week gain of 0.86% [2] - Despite solid revenue growth, Chewy's stock declined due to increased growth investments impacting investor sentiment [3] - The company is expected to benefit from its strategic initiatives aimed at increasing recurring revenue and growth rate [3] Hedge Fund Interest - Chewy, Inc. was held by 58 hedge fund portfolios at the end of Q2 2025, an increase from 55 in the previous quarter [4] - While Chewy is recognized for its potential, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]

Company Overview - PetMed Express, Inc. is an online pet pharmacy that provides prescription and non-prescription medications, supplements, and pet supplies directly to consumers across the United States [3]. Allegations and Stock Impact - On June 10, 2025, PetMed announced a delay in releasing its fourth-quarter and full-year 2025 earnings due to the need for additional time to complete its year-end audit process, resulting in a stock price decline of $0.47, or 11.2%, closing at $3.72 per share on June 11, 2025 [3]. - On July 1, 2025, PetMed disclosed another delay in filing its annual report with the SEC, linked to an internal investigation by the Audit Committee regarding whistleblower complaints about revenue recognition, promotional coupon impacts, and company culture. This announcement led to a further stock price drop of $0.05, or 1.51%, closing at $3.27 per share on the same day [3]. Legal Investigation - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving PetMed, stemming from allegations of providing misleading business information to investors [1].