Chewy Stock Declines, Attractive Valuation Draws Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Fool
- Declining Stock Trend: Chewy's stock has fallen approximately 55% over the past year, currently trading around $21.50, close to its 52-week low, reflecting market concerns about its future growth and potentially prompting investors to reassess their strategies.
- Valuation Correction: Chewy's price-to-earnings ratio has dropped to 41 times, significantly lower than 95 times last fall, with a forward P/E of 14 and a five-year PEG ratio of 0.37, indicating its undervaluation relative to long-term earnings expectations, which may attract value investors.
- Sales Growth Expectations: Chewy is expected to report net sales between $3.33 billion and $3.36 billion in its upcoming first-quarter earnings, reflecting a year-over-year growth of about 3%, while adjusted earnings per share are anticipated to rise by 57%, demonstrating the company's resilience amid economic uncertainty.
- Acquisition Strategy: Chewy plans to acquire Modern Animal to expand its veterinary care platform, with more details expected to be announced on June 10, a strategic move that could further enhance its market position and drive future growth.
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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: 21.470
Low
42.00
Averages
47.06
High
52.00
Current: 21.470
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 Stock Down 35% Year-to-Date but Outlook Remains Positive
- Downward Price Trend: Chewy's stock has declined approximately 35% year-to-date, currently trading near a 52-week low, reflecting market concerns about its future growth, particularly amid economic headwinds.
- Optimistic Earnings Forecast: Chewy anticipates first-quarter net sales between $3.33 billion and $3.36 billion, representing about a 3% increase from the previous quarter, while adjusted earnings per share are expected to rise 57% to between $0.40 and $0.45.
- Positive Growth Metrics: Despite the stock decline, Chewy's autoship sales grew about 5% year-over-year to $2.7 billion, accounting for 84% of total sales, indicating strong demand and customer loyalty in the pet supplies market.
- Acquisition Plans for Expansion: Chewy plans to acquire Modern Animal to enhance its veterinary care platform, with more details expected on June 10, a strategic move likely to strengthen its market position and drive future growth.
See More
Chewy Stock Declines, Attractive Valuation Draws Investors
- Declining Stock Trend: Chewy's stock has fallen approximately 55% over the past year, currently trading around $21.50, close to its 52-week low, reflecting market concerns about its future growth and potentially prompting investors to reassess their strategies.
- Valuation Correction: Chewy's price-to-earnings ratio has dropped to 41 times, significantly lower than 95 times last fall, with a forward P/E of 14 and a five-year PEG ratio of 0.37, indicating its undervaluation relative to long-term earnings expectations, which may attract value investors.
- Sales Growth Expectations: Chewy is expected to report net sales between $3.33 billion and $3.36 billion in its upcoming first-quarter earnings, reflecting a year-over-year growth of about 3%, while adjusted earnings per share are anticipated to rise by 57%, demonstrating the company's resilience amid economic uncertainty.
- Acquisition Strategy: Chewy plans to acquire Modern Animal to expand its veterinary care platform, with more details expected to be announced on June 10, a strategic move that could further enhance its market position and drive future growth.
See More
Chewy Stock Struggles Despite Strong Business Outlook
- Strong Performance: Despite Chewy's stock plummeting 50% over the past year and losing a third of its value in 2026, the company continues to forecast revenue growth of 8% to 9%, demonstrating its resilience and potential.
- Predictable Business Model: With 84% of sales coming from its autoship program and 85% from food and pet medications, Chewy has established a recession-resistant business model that ensures a steady revenue stream.
- Margin Expansion Goals: Chewy aims to increase its EBITDA margin from 5.7% in fiscal 2025 to 10% by leveraging automation and artificial intelligence to enhance efficiency, which is expected to drive future profitability.
- Undervalued Market Valuation: Despite Chewy's robust growth and highly recurring business model, its forward P/E ratio stands at just 13.7 times, highlighting its leadership position in the industry and future growth potential, especially when compared to the debt-laden Petco.
See More
Chewy Stock Valuation Low Despite Bright Outlook
- Stock Pressure: Chewy's stock has halved over the past year, losing a third of its value in 2026 alone, despite the company continuing to deliver strong growth, indicating a market undervaluation of its potential.
- Business Model Advantage: Approximately 84% of sales come from the autoship program, with 85% of sales being food and pet medications, providing Chewy with a predictable and recession-resistant business model that enhances its market competitiveness.
- Profitability Goals: Chewy forecasts revenue growth of 8% to 9% for fiscal 2026, with an EBITDA margin target of 10%, up from 5.7%, leveraging automation and AI to enhance efficiency.
- Financial Health: Chewy holds $879 million in cash with no debt, contrasting sharply with competitor Petco, which has over $1.2 billion in net debt, highlighting Chewy's financial strength and investment potential.
See More
Chewy (CHWY) Q4 2025 Earnings Transcript
See More
Online Pet Retailer Shows Strong Growth Prospects
- Market Growth Potential: The online pet retailer demonstrates strong growth prospects, with expectations of attracting more consumers in the coming years, significantly boosting sales.
- Stock Performance: As of the afternoon of May 28, 2026, the stock price showed positive performance, reflecting market confidence in the company and investor optimism.
- Video Release Impact: The video published on May 30, 2026, further enhanced brand visibility, attracting more potential customers and is expected to drive subsequent sales growth.
- Industry Trends: With the ongoing expansion of the pet industry, the online retailer's market share is likely to increase, strengthening the company's position in a highly competitive market.
See More
Chewy Stock Down 35% Year-to-Date but Outlook Remains Positive
- Downward Price Trend: Chewy's stock has declined approximately 35% year-to-date, currently trading near a 52-week low, reflecting market concerns about its future growth, particularly amid economic headwinds.
- Optimistic Earnings Forecast: Chewy anticipates first-quarter net sales between $3.33 billion and $3.36 billion, representing about a 3% increase from the previous quarter, while adjusted earnings per share are expected to rise 57% to between $0.40 and $0.45.
- Positive Growth Metrics: Despite the stock decline, Chewy's autoship sales grew about 5% year-over-year to $2.7 billion, accounting for 84% of total sales, indicating strong demand and customer loyalty in the pet supplies market.
- Acquisition Plans for Expansion: Chewy plans to acquire Modern Animal to enhance its veterinary care platform, with more details expected on June 10, a strategic move likely to strengthen its market position and drive future growth.
See More
Chewy Stock Declines, Attractive Valuation Draws Investors
- Declining Stock Trend: Chewy's stock has fallen approximately 55% over the past year, currently trading around $21.50, close to its 52-week low, reflecting market concerns about its future growth and potentially prompting investors to reassess their strategies.
- Valuation Correction: Chewy's price-to-earnings ratio has dropped to 41 times, significantly lower than 95 times last fall, with a forward P/E of 14 and a five-year PEG ratio of 0.37, indicating its undervaluation relative to long-term earnings expectations, which may attract value investors.
- Sales Growth Expectations: Chewy is expected to report net sales between $3.33 billion and $3.36 billion in its upcoming first-quarter earnings, reflecting a year-over-year growth of about 3%, while adjusted earnings per share are anticipated to rise by 57%, demonstrating the company's resilience amid economic uncertainty.
- Acquisition Strategy: Chewy plans to acquire Modern Animal to expand its veterinary care platform, with more details expected to be announced on June 10, a strategic move that could further enhance its market position and drive future growth.
See More
Chewy Stock Struggles Despite Strong Business Outlook
- Strong Performance: Despite Chewy's stock plummeting 50% over the past year and losing a third of its value in 2026, the company continues to forecast revenue growth of 8% to 9%, demonstrating its resilience and potential.
- Predictable Business Model: With 84% of sales coming from its autoship program and 85% from food and pet medications, Chewy has established a recession-resistant business model that ensures a steady revenue stream.
- Margin Expansion Goals: Chewy aims to increase its EBITDA margin from 5.7% in fiscal 2025 to 10% by leveraging automation and artificial intelligence to enhance efficiency, which is expected to drive future profitability.
- Undervalued Market Valuation: Despite Chewy's robust growth and highly recurring business model, its forward P/E ratio stands at just 13.7 times, highlighting its leadership position in the industry and future growth potential, especially when compared to the debt-laden Petco.
See More
Chewy Stock Valuation Low Despite Bright Outlook
- Stock Pressure: Chewy's stock has halved over the past year, losing a third of its value in 2026 alone, despite the company continuing to deliver strong growth, indicating a market undervaluation of its potential.
- Business Model Advantage: Approximately 84% of sales come from the autoship program, with 85% of sales being food and pet medications, providing Chewy with a predictable and recession-resistant business model that enhances its market competitiveness.
- Profitability Goals: Chewy forecasts revenue growth of 8% to 9% for fiscal 2026, with an EBITDA margin target of 10%, up from 5.7%, leveraging automation and AI to enhance efficiency.
- Financial Health: Chewy holds $879 million in cash with no debt, contrasting sharply with competitor Petco, which has over $1.2 billion in net debt, highlighting Chewy's financial strength and investment potential.
See More
Chewy (CHWY) Q4 2025 Earnings Transcript
See More
Online Pet Retailer Shows Strong Growth Prospects
- Market Growth Potential: The online pet retailer demonstrates strong growth prospects, with expectations of attracting more consumers in the coming years, significantly boosting sales.
- Stock Performance: As of the afternoon of May 28, 2026, the stock price showed positive performance, reflecting market confidence in the company and investor optimism.
- Video Release Impact: The video published on May 30, 2026, further enhanced brand visibility, attracting more potential customers and is expected to drive subsequent sales growth.
- Industry Trends: With the ongoing expansion of the pet industry, the online retailer's market share is likely to increase, strengthening the company's position in a highly competitive market.
See More
