Investment Opportunities in Chewy and e.l.f. Beauty
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy CHWY?
Source: NASDAQ.COM
- Chewy's Defensive Business Model: Chewy trades at a forward P/E of 15.5 times, and despite pressures from rising oil prices, its pet food-centric business model positions it well for recession resilience, with an expected annual growth rate of 8.3%, enhancing its market competitiveness.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty has a forward P/E slightly above 15 times, and despite challenges from consumer spending weakness, its acquisition of the Rhode brand is expected to drive future sales growth, with Rhode achieving over $200 million in sales within three years, indicating substantial market potential.
- Pinterest's Transformation and Investment Backing: Pinterest's forward P/E is just 10 times, with a 16% revenue growth last year, and under the support of Elliott Investment Management, Pinterest is transforming into a shopping discovery platform, achieving a 12% user growth, laying a foundation for future profitability.
- Investment Opportunities Amid Market Uncertainty: Despite market turbulence due to the Iran war and rising oil prices, investing during uncertainty is seen as an opportunity, with Chewy, e.l.f. Beauty, and Pinterest being undervalued stocks worth considering for diversified investment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CHWY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 26.970
Low
42.00
Averages
47.06
High
52.00
Current: 26.970
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: A Promising E-Commerce Stock in Pet Care
- Market Potential: The U.S. pet market surpassed $150 billion last year and is projected to reach $165 billion this year, positioning Chewy as a key player in essential pet products, which can thrive amid economic uncertainties and attract investor interest.
- Clear Competitive Advantage: Chewy offers a comprehensive shopping experience, including food, toys, online vet consultations, and pet health insurance, enhancing customer loyalty; despite competition from Walmart, its digital presence allows it to stand out in the market.
- Successful Autoship Service: Chewy's Autoship service accounts for over 80% of total sales, providing convenience for customers while ensuring predictable future revenue for the company, further solidifying its market position.
- New Revenue Stream: Chewy launched vet care clinics in 2024, creating a new revenue source that not only adds to income but also introduces the e-commerce platform to pet parents who may not yet be aware of it, driving future growth for the company.
See More
Chewy: A Potential Star in the Pet Market
- Market Potential: With approximately 95 million U.S. households owning pets, the pet market exceeded $150 billion last year and is projected to reach $165 billion this year, positioning Chewy to benefit from this growth and ensure steady revenue.
- Clear Competitive Advantage: Chewy offers a comprehensive range of pet products and services, including food, toys, and online vet consultations, allowing customers to meet all their needs on one platform, which enhances its competitive edge.
- Successful Autoship Service: Chewy's Autoship service accounts for over 80% of total sales, providing customers with convenience while giving the company visibility into future revenue, thereby boosting investor confidence.
- New Revenue Stream: By launching its first vet care clinics in 2024, Chewy not only adds a new source of income but also attracts pet parents who may not yet be familiar with its e-commerce platform, further driving business growth.
See More
Three Cheap Stocks to Buy Amid Market Turmoil
- Chewy's Defensive Business Model: Chewy (CHWY) trades at a forward P/E of 15.5, and despite pressures from rising oil prices, its focus on pet food positions it well for recession resilience, likely maintaining stable revenue growth as consumers continue to prioritize pet care.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty (ELF) trades at just over 15 times forward P/E, and despite challenges from consumer spending weakness, its market share in cosmetics is expanding, particularly through the acquisition of the Rhode brand, which is expected to drive future sales growth.
- Pinterest's Transformation Opportunity: Pinterest (PINS) trades at a forward P/E of 10, with a 16% revenue growth last year, and its strategic shift to a shopping discovery platform is proving effective, as evidenced by a 12% user growth, particularly in international markets.
- Support from Activist Investors: Pinterest is backed by activist investor Elliott Investment Management, which injected $1 billion for stock buybacks, presenting a compelling buying opportunity for investors during this price dip, with expectations of enhanced shareholder value.
See More
Investment Opportunities in Chewy and e.l.f. Beauty
- Chewy's Defensive Business Model: Chewy trades at a forward P/E of 15.5 times, and despite pressures from rising oil prices, its pet food-centric business model positions it well for recession resilience, with an expected annual growth rate of 8.3%, enhancing its market competitiveness.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty has a forward P/E slightly above 15 times, and despite challenges from consumer spending weakness, its acquisition of the Rhode brand is expected to drive future sales growth, with Rhode achieving over $200 million in sales within three years, indicating substantial market potential.
- Pinterest's Transformation and Investment Backing: Pinterest's forward P/E is just 10 times, with a 16% revenue growth last year, and under the support of Elliott Investment Management, Pinterest is transforming into a shopping discovery platform, achieving a 12% user growth, laying a foundation for future profitability.
- Investment Opportunities Amid Market Uncertainty: Despite market turbulence due to the Iran war and rising oil prices, investing during uncertainty is seen as an opportunity, with Chewy, e.l.f. Beauty, and Pinterest being undervalued stocks worth considering for diversified investment.
See More
Chewy Acquires Modern Animal to Accelerate Pet Healthcare Expansion
- Acquisition of Modern Animal: Chewy (CHWY) has agreed to acquire Modern Animal to accelerate its clinical expansion and evolve into a fully integrated pet healthcare ecosystem, expected to add over $125 million in annualized revenue, significantly enhancing its market competitiveness.
- Store Expansion: This acquisition will scale Chewy Vet Care's footprint from 18 to 47 locations, with expectations of achieving EBITDA-dollar neutrality by 2026, thereby strengthening the company's presence in the pet healthcare market.
- Customer Sales Growth: The integration of Modern Animal is projected to drive a 15% to 20% increase in net sales per active customer, further boosting Chewy's revenue growth and customer loyalty in the pet healthcare sector.
- Share Repurchase Program: Chewy also announced a $500 million increase to its existing share repurchase program, reflecting confidence in the company's long-term strategy and strong free cash flow generation, demonstrating a disciplined approach to capital allocation.
See More
Chewy Stock Rises 1.9% Following Acquisition of Modern Animal
- Chewy's Stock Performance: Chewy's shares have increased by 1.9% following the acquisition of Modern Animal.
- Acquisition Details: The acquisition of Modern Animal is expected to enhance Chewy's offerings in the pet care market.
See More
Chewy: A Promising E-Commerce Stock in Pet Care
- Market Potential: The U.S. pet market surpassed $150 billion last year and is projected to reach $165 billion this year, positioning Chewy as a key player in essential pet products, which can thrive amid economic uncertainties and attract investor interest.
- Clear Competitive Advantage: Chewy offers a comprehensive shopping experience, including food, toys, online vet consultations, and pet health insurance, enhancing customer loyalty; despite competition from Walmart, its digital presence allows it to stand out in the market.
- Successful Autoship Service: Chewy's Autoship service accounts for over 80% of total sales, providing convenience for customers while ensuring predictable future revenue for the company, further solidifying its market position.
- New Revenue Stream: Chewy launched vet care clinics in 2024, creating a new revenue source that not only adds to income but also introduces the e-commerce platform to pet parents who may not yet be aware of it, driving future growth for the company.
See More
Chewy: A Potential Star in the Pet Market
- Market Potential: With approximately 95 million U.S. households owning pets, the pet market exceeded $150 billion last year and is projected to reach $165 billion this year, positioning Chewy to benefit from this growth and ensure steady revenue.
- Clear Competitive Advantage: Chewy offers a comprehensive range of pet products and services, including food, toys, and online vet consultations, allowing customers to meet all their needs on one platform, which enhances its competitive edge.
- Successful Autoship Service: Chewy's Autoship service accounts for over 80% of total sales, providing customers with convenience while giving the company visibility into future revenue, thereby boosting investor confidence.
- New Revenue Stream: By launching its first vet care clinics in 2024, Chewy not only adds a new source of income but also attracts pet parents who may not yet be familiar with its e-commerce platform, further driving business growth.
See More
Three Cheap Stocks to Buy Amid Market Turmoil
- Chewy's Defensive Business Model: Chewy (CHWY) trades at a forward P/E of 15.5, and despite pressures from rising oil prices, its focus on pet food positions it well for recession resilience, likely maintaining stable revenue growth as consumers continue to prioritize pet care.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty (ELF) trades at just over 15 times forward P/E, and despite challenges from consumer spending weakness, its market share in cosmetics is expanding, particularly through the acquisition of the Rhode brand, which is expected to drive future sales growth.
- Pinterest's Transformation Opportunity: Pinterest (PINS) trades at a forward P/E of 10, with a 16% revenue growth last year, and its strategic shift to a shopping discovery platform is proving effective, as evidenced by a 12% user growth, particularly in international markets.
- Support from Activist Investors: Pinterest is backed by activist investor Elliott Investment Management, which injected $1 billion for stock buybacks, presenting a compelling buying opportunity for investors during this price dip, with expectations of enhanced shareholder value.
See More
Investment Opportunities in Chewy and e.l.f. Beauty
- Chewy's Defensive Business Model: Chewy trades at a forward P/E of 15.5 times, and despite pressures from rising oil prices, its pet food-centric business model positions it well for recession resilience, with an expected annual growth rate of 8.3%, enhancing its market competitiveness.
- e.l.f. Beauty's Growth Potential: e.l.f. Beauty has a forward P/E slightly above 15 times, and despite challenges from consumer spending weakness, its acquisition of the Rhode brand is expected to drive future sales growth, with Rhode achieving over $200 million in sales within three years, indicating substantial market potential.
- Pinterest's Transformation and Investment Backing: Pinterest's forward P/E is just 10 times, with a 16% revenue growth last year, and under the support of Elliott Investment Management, Pinterest is transforming into a shopping discovery platform, achieving a 12% user growth, laying a foundation for future profitability.
- Investment Opportunities Amid Market Uncertainty: Despite market turbulence due to the Iran war and rising oil prices, investing during uncertainty is seen as an opportunity, with Chewy, e.l.f. Beauty, and Pinterest being undervalued stocks worth considering for diversified investment.
See More
Chewy Acquires Modern Animal to Accelerate Pet Healthcare Expansion
- Acquisition of Modern Animal: Chewy (CHWY) has agreed to acquire Modern Animal to accelerate its clinical expansion and evolve into a fully integrated pet healthcare ecosystem, expected to add over $125 million in annualized revenue, significantly enhancing its market competitiveness.
- Store Expansion: This acquisition will scale Chewy Vet Care's footprint from 18 to 47 locations, with expectations of achieving EBITDA-dollar neutrality by 2026, thereby strengthening the company's presence in the pet healthcare market.
- Customer Sales Growth: The integration of Modern Animal is projected to drive a 15% to 20% increase in net sales per active customer, further boosting Chewy's revenue growth and customer loyalty in the pet healthcare sector.
- Share Repurchase Program: Chewy also announced a $500 million increase to its existing share repurchase program, reflecting confidence in the company's long-term strategy and strong free cash flow generation, demonstrating a disciplined approach to capital allocation.
See More
Chewy Stock Rises 1.9% Following Acquisition of Modern Animal
- Chewy's Stock Performance: Chewy's shares have increased by 1.9% following the acquisition of Modern Animal.
- Acquisition Details: The acquisition of Modern Animal is expected to enhance Chewy's offerings in the pet care market.
See More
