Three Discount Stocks Worth Buying Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CHWY?
Source: Fool
- Chewy Stock Decline: Chewy (CHWY) shares have recently hit a new 52-week low, now priced at less than half of June's peak, despite the company reporting over 8% year-over-year revenue growth last quarter, indicating strong competitiveness in the pet supply market.
- Uber Earnings Outlook: Uber (UBER) reported a fourth-quarter profit of $0.71 per share, missing expectations but still up 27% year-over-year, with total trips increasing by 22%, highlighting its market potential amid rising demand for personal transportation, with profit margins expected to widen again.
- ServiceNow's Steady Performance: ServiceNow (NOW) has seen its stock price drop nearly 50% from July's peak, yet it generated nearly $3.6 billion in revenue last quarter with over $400 million in net income, showcasing its stable profitability in the AI sector, with analysts optimistic about future growth.
- Market Dynamics Analysis: While the overall market may appear overvalued, companies like Chewy, Uber, and ServiceNow demonstrate investment value due to their performance and growth potential, particularly in the context of changing consumer demands.
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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: 25.860
Low
42.00
Averages
47.06
High
52.00
Current: 25.860
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.
Three Discount Stocks Worth Buying Now
- Chewy Stock Decline: Chewy (CHWY) shares have recently hit a new 52-week low, now priced at less than half of June's peak, despite the company reporting over 8% year-over-year revenue growth last quarter, indicating strong competitiveness in the pet supply market.
- Uber Earnings Outlook: Uber (UBER) reported a fourth-quarter profit of $0.71 per share, missing expectations but still up 27% year-over-year, with total trips increasing by 22%, highlighting its market potential amid rising demand for personal transportation, with profit margins expected to widen again.
- ServiceNow's Steady Performance: ServiceNow (NOW) has seen its stock price drop nearly 50% from July's peak, yet it generated nearly $3.6 billion in revenue last quarter with over $400 million in net income, showcasing its stable profitability in the AI sector, with analysts optimistic about future growth.
- Market Dynamics Analysis: While the overall market may appear overvalued, companies like Chewy, Uber, and ServiceNow demonstrate investment value due to their performance and growth potential, particularly in the context of changing consumer demands.
See More
Three Discount Stocks Worth Buying Now
- Chewy Stock Decline: Chewy (NYSE: CHWY) shares recently hit a new 52-week low, now priced at less than half of June's peak, despite the company reporting over 8% year-over-year revenue growth last quarter, indicating strong competitive positioning in the pet supply market.
- Uber Earnings Outlook: Uber (NYSE: UBER) reported a fourth-quarter profit of only $0.71 per share, below expectations, yet this still represents a 27% year-over-year increase alongside a 22% rise in total trips, reflecting robust demand in the personal transportation sector, with profit margins expected to improve in upcoming quarters.
- ServiceNow's Undervalued Position: ServiceNow (NYSE: NOW) has seen its stock price drop nearly 50% from its July peak, but it generated nearly $3.6 billion in revenue last quarter with over $400 million in net income, showcasing its practical AI applications, with analysts forecasting over 20% growth in the coming years.
- Investor Confidence Rebound: Despite growing concerns over AI stocks, ServiceNow's consensus price target stands at $187.69, representing a 78% upside from its current price, indicating strong analyst confidence in its future performance, highlighting its unique market positioning.
See More
Supreme Court Strikes Down Trump's Tariffs, Boosting E-Commerce Stocks
- Tariff Ruling Impact: The Supreme Court's 6-3 ruling invalidates Trump's tariff policies, stating he lacked authority under the International Economic Powers Act, resulting in Amazon's stock rising over 1% and Etsy climbing 5%.
- E-Commerce Market Rebound: Following the ruling, shares of Shopify, Wayfair, and eBay surged over 3%, while Pinduoduo's parent company also saw a 3% increase, indicating renewed market confidence in the e-commerce sector.
- Small Business Pressure: Trump's tariffs had severely disrupted e-commerce platforms, forcing many small businesses to raise prices or lay off staff; Etsy's annual report highlighted a pullback in consumer spending, leading to pessimistic sales forecasts.
- Industry Outlook Uncertainty: Despite the ruling providing some market confidence, both Etsy and Amazon express concerns over future tariff policy changes, particularly regarding their impact on consumer demand and discretionary spending, leaving the industry facing significant uncertainty.
See More
Chewy Shares Rise Following Upgrade by Raymond James
- Upgrade Announcement: Raymond James upgraded Chewy's rating from Market Perform to Outperform, setting a price target of $28, which indicates a 16% upside from Wednesday's closing price, reflecting a renewed market confidence in the company.
- Stock Price Decline: Chewy shares fell over 32% through January and February, hitting an 18-month low of $23.06, with current trading at approximately 8x enterprise value to FY27 EBITDA, significantly below its three-year average of 22x, suggesting low market expectations for future growth.
- Growth Drivers: Analyst Rick Patel noted that while conservative guidance has impacted stock performance, a forecasted 7% revenue growth in FY26 and an 80 basis point expansion in adjusted EBITDA margin to 6.5% indicate improving fundamentals for the company.
- Increased Customer Spending: Chewy's net sales per active customer remain positive, with increased spending from new customers and the implementation of loyalty initiatives, enhancing the company's defensive profile and providing protection in the event of an economic downturn.
See More
Chewy Stock Upgraded to Outperform by Raymond James
- Upgrade Announcement: Raymond James upgraded Chewy's stock to Outperform with a price target of $28, resulting in a 4.18% increase to $25.20, reflecting strong market optimism about its future performance.
- Positive Market Outlook: Analyst Rick Patel noted that the recent sell-off post-earnings provided an attractive entry point for investors, with steady consumer demand expected to support Chewy's growth outlook heading into 2026.
- Veterinary Clinic Strategy: Patel emphasized that Chewy's development of veterinary clinics could unlock a $25 billion services segment within the $47 billion U.S. pet health market, showcasing the company's potential for expansion into new business areas.
- High Customer Loyalty: With approximately 83% of revenue coming from autoship customers and essential categories like consumables and healthcare making up about 90% of annual sales, Chewy demonstrates strong defensive positioning, effectively mitigating risks during economic downturns.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
Three Discount Stocks Worth Buying Now
- Chewy Stock Decline: Chewy (CHWY) shares have recently hit a new 52-week low, now priced at less than half of June's peak, despite the company reporting over 8% year-over-year revenue growth last quarter, indicating strong competitiveness in the pet supply market.
- Uber Earnings Outlook: Uber (UBER) reported a fourth-quarter profit of $0.71 per share, missing expectations but still up 27% year-over-year, with total trips increasing by 22%, highlighting its market potential amid rising demand for personal transportation, with profit margins expected to widen again.
- ServiceNow's Steady Performance: ServiceNow (NOW) has seen its stock price drop nearly 50% from July's peak, yet it generated nearly $3.6 billion in revenue last quarter with over $400 million in net income, showcasing its stable profitability in the AI sector, with analysts optimistic about future growth.
- Market Dynamics Analysis: While the overall market may appear overvalued, companies like Chewy, Uber, and ServiceNow demonstrate investment value due to their performance and growth potential, particularly in the context of changing consumer demands.
See More
Three Discount Stocks Worth Buying Now
- Chewy Stock Decline: Chewy (NYSE: CHWY) shares recently hit a new 52-week low, now priced at less than half of June's peak, despite the company reporting over 8% year-over-year revenue growth last quarter, indicating strong competitive positioning in the pet supply market.
- Uber Earnings Outlook: Uber (NYSE: UBER) reported a fourth-quarter profit of only $0.71 per share, below expectations, yet this still represents a 27% year-over-year increase alongside a 22% rise in total trips, reflecting robust demand in the personal transportation sector, with profit margins expected to improve in upcoming quarters.
- ServiceNow's Undervalued Position: ServiceNow (NYSE: NOW) has seen its stock price drop nearly 50% from its July peak, but it generated nearly $3.6 billion in revenue last quarter with over $400 million in net income, showcasing its practical AI applications, with analysts forecasting over 20% growth in the coming years.
- Investor Confidence Rebound: Despite growing concerns over AI stocks, ServiceNow's consensus price target stands at $187.69, representing a 78% upside from its current price, indicating strong analyst confidence in its future performance, highlighting its unique market positioning.
See More
Supreme Court Strikes Down Trump's Tariffs, Boosting E-Commerce Stocks
- Tariff Ruling Impact: The Supreme Court's 6-3 ruling invalidates Trump's tariff policies, stating he lacked authority under the International Economic Powers Act, resulting in Amazon's stock rising over 1% and Etsy climbing 5%.
- E-Commerce Market Rebound: Following the ruling, shares of Shopify, Wayfair, and eBay surged over 3%, while Pinduoduo's parent company also saw a 3% increase, indicating renewed market confidence in the e-commerce sector.
- Small Business Pressure: Trump's tariffs had severely disrupted e-commerce platforms, forcing many small businesses to raise prices or lay off staff; Etsy's annual report highlighted a pullback in consumer spending, leading to pessimistic sales forecasts.
- Industry Outlook Uncertainty: Despite the ruling providing some market confidence, both Etsy and Amazon express concerns over future tariff policy changes, particularly regarding their impact on consumer demand and discretionary spending, leaving the industry facing significant uncertainty.
See More
Chewy Shares Rise Following Upgrade by Raymond James
- Upgrade Announcement: Raymond James upgraded Chewy's rating from Market Perform to Outperform, setting a price target of $28, which indicates a 16% upside from Wednesday's closing price, reflecting a renewed market confidence in the company.
- Stock Price Decline: Chewy shares fell over 32% through January and February, hitting an 18-month low of $23.06, with current trading at approximately 8x enterprise value to FY27 EBITDA, significantly below its three-year average of 22x, suggesting low market expectations for future growth.
- Growth Drivers: Analyst Rick Patel noted that while conservative guidance has impacted stock performance, a forecasted 7% revenue growth in FY26 and an 80 basis point expansion in adjusted EBITDA margin to 6.5% indicate improving fundamentals for the company.
- Increased Customer Spending: Chewy's net sales per active customer remain positive, with increased spending from new customers and the implementation of loyalty initiatives, enhancing the company's defensive profile and providing protection in the event of an economic downturn.
See More
Chewy Stock Upgraded to Outperform by Raymond James
- Upgrade Announcement: Raymond James upgraded Chewy's stock to Outperform with a price target of $28, resulting in a 4.18% increase to $25.20, reflecting strong market optimism about its future performance.
- Positive Market Outlook: Analyst Rick Patel noted that the recent sell-off post-earnings provided an attractive entry point for investors, with steady consumer demand expected to support Chewy's growth outlook heading into 2026.
- Veterinary Clinic Strategy: Patel emphasized that Chewy's development of veterinary clinics could unlock a $25 billion services segment within the $47 billion U.S. pet health market, showcasing the company's potential for expansion into new business areas.
- High Customer Loyalty: With approximately 83% of revenue coming from autoship customers and essential categories like consumables and healthcare making up about 90% of annual sales, Chewy demonstrates strong defensive positioning, effectively mitigating risks during economic downturns.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
