Chewy, Bausch Health Companies And Other Big Stocks Moving Lower In Wednesday's Pre-Market Session
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2025
0mins
Source: Benzinga
U.S. Stock Market Overview: U.S. stock futures are down, with the Dow futures dropping about 50 points. Several stocks, including Chewy, Inc., Humacyte, and Zhengye Biotechnology, experienced significant declines in pre-market trading.
Chewy's Earnings Report: Chewy, Inc. reported quarterly earnings of 28 cents per share, surpassing estimates, but its shares fell 3.5% to $32.44 in pre-market trading. Other companies like Humacyte and Nyxoah also saw notable drops following their respective announcements.
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Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 17.770
Low
42.00
Averages
47.06
High
52.00
Current: 17.770
Low
42.00
Averages
47.06
High
52.00
About CHWY
Chewy, Inc. is an e-commerce business geared toward pet products and services. The Company’s products consist of pet food and treats, pet supplies and pet medications, other pet-health products, and pet services. It serves its customers through its retail websites, and its mobile applications and focuses on delivering customer service, competitive prices, convenience, including Chewy’s Autoship subscription program, and a range of pet food, treats and supplies, and pet healthcare products and services. It partners with approximately 3,200 of the brands in the pet industry, and it creates and offers its own private brands. It owns a number of trademark registrations and applications in the United States and in foreign jurisdictions. These trademarks include American Journey, Blue Box Event, Careplus, Chewy, Chewy.com, Chewy Vet Care, Dr. Lyon’s, Frisco, Goody Box, Onguard, PetMD, PracticeHub, Tiny Tiger, True Acre Farms, Tylee’s, Vibeful, and The Zoo.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chewy, Inc. Lowers Fiscal 2026 Outlook Amid Mixed Earnings
- Earnings Performance: Chewy, Inc. reported net sales of $3.36 billion for Q1 of fiscal 2026, reflecting a 7.7% year-over-year increase, with net income reaching $94.8 million and adjusted EBITDA climbing by $60.4 million to $253.1 million, showcasing resilience despite macroeconomic pressures.
- Customer Growth: The company added nearly 200,000 net customers during the quarter, and CEO Sumit Singh highlighted record profitability and customer acquisition, indicating the robustness of Chewy's business model in a dynamic consumer environment.
- Market Expectation Adjustment: UBS lowered Chewy's price target from $32 to $24 while maintaining a
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Chewy Launches New Premium Dog Treat Line
- New Product Launch: Chewy has introduced a new premium dog treat line called Rare Breed, focusing on simple, high-quality ingredients aimed at consumers with higher standards for pet food quality.
- Social Responsibility Integration: The Rare Breed range ties into animal welfare initiatives, with part of the brand story centered on community and shelter support, reflecting Chewy's mission-driven strategy in the pet care sector.
- Market Expansion Opportunity: Amidst pressure on Chewy's stock price, which is currently at $18.21 and has seen a 77.3% decline in returns over five years, the launch of this new product provides an opportunity to attract higher-spending pet owners.
- Profitability Concerns: While the new product line may support higher average spending, the current profit margin is around 2%, down from 3.2%, prompting investors to monitor whether the new offerings enhance profitability rather than dilute existing margins.
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Three Growth Stocks Worth Investing In Now
- Chewy Financial Performance: Chewy's revenue increased by 7.7% year-over-year, with earnings per share rising from $0.15 to $0.23, surpassing analyst expectations; despite lowering its full-year revenue guidance to $13.4 billion to $13.55 billion, this still represents a 7% growth over last year, showcasing the company's resilience in challenging times.
- DraftKings Market Competition: DraftKings reported a 17% year-over-year revenue growth to $1.65 billion last quarter, and despite facing new competitors, its brand strength and partnerships with sports teams help maintain its market leadership, with plans to launch a proprietary exchange and super app to enhance its position.
- Rocket Lab Growth Potential: Rocket Lab's shares have fallen nearly 30% from last month's peak, yet its focus on small and medium rocket launches positions it well within the $370 billion space industry, particularly as medium launches are expected to account for over half of future market demand.
- Industry Outlook Analysis: Despite high market valuations, there are still growth stocks worth considering; the performances of Chewy, DraftKings, and Rocket Lab indicate that investors can find potential growth opportunities in volatile markets, especially in technology and consumer goods sectors.
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- American Eagle Performance: In FY 2025, American Eagle Outfitters reported revenue of approximately $5.5 billion, a 3.2% increase, but net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending that necessitate a focus on brand profitability to navigate market fluctuations.
- Pet Supplier Growth: Chewy's revenue reached nearly $12.6 billion in FY 2025, growing by 6.2%, yet net income was approximately $222.8 million with a net margin of 1.8%, reflecting the pressure of investments in expanding veterinary services and health infrastructure that may impact short-term profitability.
- Risks and Challenges: American Eagle faces a 10% global tariff risk that could create uncertainty in merchandise costs and strain supply chain stability, while Chewy contends with fierce competition from Amazon and Walmart, alongside corporate governance risks that may affect minority shareholders' interests.
- Valuation Comparison: American Eagle trades at a forward P/E of 10.3x, significantly lower than Chewy's 23.0x, although both share a P/S ratio of 0.6x, indicating differing market expectations regarding their future growth potential, prompting investors to carefully assess each company's long-term investment value.
See More
Market Comparison: American Eagle Outfitters vs. Chewy
- Brand Loyalty: American Eagle Outfitters focuses on the teen and young adult market through its 1,168 company-owned stores, reporting nearly $5.5 billion in revenue for FY 2025, a 3.2% increase, although net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending.
- Financial Health: As of January 2026, the company has a debt-to-equity ratio of 1.0 and a current ratio of approximately 1.5, indicating solid short-term debt coverage, while generating free cash flow of about $195.4 million to support future investments and operations.
- Market Expansion Strategy: Chewy is expanding its veterinary clinic network to 47 locations through the acquisition of Modern Animal, achieving a revenue growth of approximately 6.2% to nearly $12.6 billion in FY 2025, despite a decline in net income to $222.8 million and a net margin of 1.8%, reflecting its investment in veterinary services.
- Competition and Risks: American Eagle Outfitters faces risks from a new 10% global tariff that could impact merchandise costs and supply chain stability, while Chewy contends with intense competition from Amazon and Walmart, alongside governance risks that may affect minority shareholders.
See More
Investment Comparison: American Eagle Outfitters vs. Chewy
- American Eagle Performance: In FY 2025, American Eagle Outfitters reported nearly $5.5 billion in revenue, a 3.2% increase year-over-year, although net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending.
- Chewy Growth Momentum: Chewy achieved approximately $12.6 billion in revenue for FY 2025, growing 6.2%, yet its net margin decreased to 1.8%, reflecting the pressure from investments in expanding veterinary services and health infrastructure.
- Risk Comparison: American Eagle faces a 10% global tariff risk that could impact merchandise costs and supply chain stability, while Chewy contends with fierce competition from Amazon and Walmart, alongside significant corporate governance risks.
- Valuation Discrepancy: American Eagle's forward P/E stands at 10.3x, significantly lower than Chewy's 23.0x, despite both having a P/S ratio of 0.6, indicating differing market expectations regarding their future growth potential.
See More
Chewy, Inc. Lowers Fiscal 2026 Outlook Amid Mixed Earnings
- Earnings Performance: Chewy, Inc. reported net sales of $3.36 billion for Q1 of fiscal 2026, reflecting a 7.7% year-over-year increase, with net income reaching $94.8 million and adjusted EBITDA climbing by $60.4 million to $253.1 million, showcasing resilience despite macroeconomic pressures.
- Customer Growth: The company added nearly 200,000 net customers during the quarter, and CEO Sumit Singh highlighted record profitability and customer acquisition, indicating the robustness of Chewy's business model in a dynamic consumer environment.
- Market Expectation Adjustment: UBS lowered Chewy's price target from $32 to $24 while maintaining a
See More
Chewy Launches New Premium Dog Treat Line
- New Product Launch: Chewy has introduced a new premium dog treat line called Rare Breed, focusing on simple, high-quality ingredients aimed at consumers with higher standards for pet food quality.
- Social Responsibility Integration: The Rare Breed range ties into animal welfare initiatives, with part of the brand story centered on community and shelter support, reflecting Chewy's mission-driven strategy in the pet care sector.
- Market Expansion Opportunity: Amidst pressure on Chewy's stock price, which is currently at $18.21 and has seen a 77.3% decline in returns over five years, the launch of this new product provides an opportunity to attract higher-spending pet owners.
- Profitability Concerns: While the new product line may support higher average spending, the current profit margin is around 2%, down from 3.2%, prompting investors to monitor whether the new offerings enhance profitability rather than dilute existing margins.
See More
Three Growth Stocks Worth Investing In Now
- Chewy Financial Performance: Chewy's revenue increased by 7.7% year-over-year, with earnings per share rising from $0.15 to $0.23, surpassing analyst expectations; despite lowering its full-year revenue guidance to $13.4 billion to $13.55 billion, this still represents a 7% growth over last year, showcasing the company's resilience in challenging times.
- DraftKings Market Competition: DraftKings reported a 17% year-over-year revenue growth to $1.65 billion last quarter, and despite facing new competitors, its brand strength and partnerships with sports teams help maintain its market leadership, with plans to launch a proprietary exchange and super app to enhance its position.
- Rocket Lab Growth Potential: Rocket Lab's shares have fallen nearly 30% from last month's peak, yet its focus on small and medium rocket launches positions it well within the $370 billion space industry, particularly as medium launches are expected to account for over half of future market demand.
- Industry Outlook Analysis: Despite high market valuations, there are still growth stocks worth considering; the performances of Chewy, DraftKings, and Rocket Lab indicate that investors can find potential growth opportunities in volatile markets, especially in technology and consumer goods sectors.
See More
Comparing Apparel Retailer and Pet Supplier Strategies
- American Eagle Performance: In FY 2025, American Eagle Outfitters reported revenue of approximately $5.5 billion, a 3.2% increase, but net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending that necessitate a focus on brand profitability to navigate market fluctuations.
- Pet Supplier Growth: Chewy's revenue reached nearly $12.6 billion in FY 2025, growing by 6.2%, yet net income was approximately $222.8 million with a net margin of 1.8%, reflecting the pressure of investments in expanding veterinary services and health infrastructure that may impact short-term profitability.
- Risks and Challenges: American Eagle faces a 10% global tariff risk that could create uncertainty in merchandise costs and strain supply chain stability, while Chewy contends with fierce competition from Amazon and Walmart, alongside corporate governance risks that may affect minority shareholders' interests.
- Valuation Comparison: American Eagle trades at a forward P/E of 10.3x, significantly lower than Chewy's 23.0x, although both share a P/S ratio of 0.6x, indicating differing market expectations regarding their future growth potential, prompting investors to carefully assess each company's long-term investment value.
See More
Market Comparison: American Eagle Outfitters vs. Chewy
- Brand Loyalty: American Eagle Outfitters focuses on the teen and young adult market through its 1,168 company-owned stores, reporting nearly $5.5 billion in revenue for FY 2025, a 3.2% increase, although net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending.
- Financial Health: As of January 2026, the company has a debt-to-equity ratio of 1.0 and a current ratio of approximately 1.5, indicating solid short-term debt coverage, while generating free cash flow of about $195.4 million to support future investments and operations.
- Market Expansion Strategy: Chewy is expanding its veterinary clinic network to 47 locations through the acquisition of Modern Animal, achieving a revenue growth of approximately 6.2% to nearly $12.6 billion in FY 2025, despite a decline in net income to $222.8 million and a net margin of 1.8%, reflecting its investment in veterinary services.
- Competition and Risks: American Eagle Outfitters faces risks from a new 10% global tariff that could impact merchandise costs and supply chain stability, while Chewy contends with intense competition from Amazon and Walmart, alongside governance risks that may affect minority shareholders.
See More
Investment Comparison: American Eagle Outfitters vs. Chewy
- American Eagle Performance: In FY 2025, American Eagle Outfitters reported nearly $5.5 billion in revenue, a 3.2% increase year-over-year, although net income fell to $192 million with a net margin of 3.5%, indicating challenges in consumer spending.
- Chewy Growth Momentum: Chewy achieved approximately $12.6 billion in revenue for FY 2025, growing 6.2%, yet its net margin decreased to 1.8%, reflecting the pressure from investments in expanding veterinary services and health infrastructure.
- Risk Comparison: American Eagle faces a 10% global tariff risk that could impact merchandise costs and supply chain stability, while Chewy contends with fierce competition from Amazon and Walmart, alongside significant corporate governance risks.
- Valuation Discrepancy: American Eagle's forward P/E stands at 10.3x, significantly lower than Chewy's 23.0x, despite both having a P/S ratio of 0.6, indicating differing market expectations regarding their future growth potential.
See More
