Chewy and Dutch Bros Show Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- Chewy's Brand Strength: Chewy's annual revenue has surged from $2.1 billion in 2018 to over $12 billion, with 84% of sales coming from its Autoship program, demonstrating its strong competitive edge and customer loyalty in the pet supplies market.
- Market Opportunity: The pet industry spending reached $90 billion in 2018 and is projected to grow to $157 billion by 2025, positioning Chewy favorably in this rapidly expanding market due to its repeat purchase model and strong brand influence.
- Dutch Bros Expansion Plans: Dutch Bros aims to increase its store count from 1,081 to 7,000 by 2025, with same-store sales growing 5.7% last quarter, indicating the effectiveness of its brand differentiation strategy.
- Profit Potential: Dutch Bros' revenue grew 25% year-over-year last quarter, and analysts forecast an annual earnings growth of 32% over the coming years, providing a solid investment outlook in the competitive beverage market.
Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHWY is 47.06 USD with a low forecast of 42.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 31.300
Low
42.00
Averages
47.06
High
52.00
Current: 31.300
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.
