CHWY

Strong Holiday Sales: U.S. online sales during the 2025 Black Friday weekend reached record levels, with total spending over Cyber Week hitting approximately $44.2 billion, a 7.7% increase from the previous year, driven by significant mobile sales.

E-Commerce Category Trends: Home Goods and Pet Care emerged as standout categories, with analysts predicting positive stock movements for companies like Wayfair and Chewy due to increased consumer interest and spending in these areas.

AI-Driven Shopping Growth: AI-driven traffic to retail sites surged 805% year over year, influencing about $3 billion of Black Friday's online spending, indicating a strong trend towards AI-assisted shopping experiences.

Stock Predictions: Analysts from Bank of America have set optimistic price targets for several e-commerce companies, including Etsy and eBay, based on strong holiday sales performance and growing consumer engagement through AI tools.

Chewy's Expansion into Pet Health: Chewy, Inc. is strategically expanding its Chewy Vet Care network, which is driving high-value customer acquisition and enhancing its ecosystem by integrating pet health services with its existing offerings.

Customer Engagement and Profitability: The Vet Care customers are generating higher Net Sales Per Active Customer (NSPAC) and are more likely to purchase premium products, which supports Chewy's Autoship model and increases gross profit per customer.

Future Growth Plans: Chewy plans to open 8 to 10 new veterinary practices in fiscal 2025, aiming to increase its total to 20, which is expected to strengthen its healthcare presence and improve customer loyalty.

Stock Performance and Valuation: Despite a year-to-date decline in shares, Chewy's earnings estimates for fiscal 2026 and 2027 indicate significant growth, although its forward price-to-earnings ratio is notably higher than the industry average.

Chewy's Stock Performance: Chewy (CHWY) closed at $34.22, up 2.03% from the previous day, but has decreased 1.82% over the last month, underperforming compared to the Retail-Wholesale sector and the S&P 500.

Upcoming Earnings Report: Chewy is set to release its earnings on December 10, 2025, with expectations of an EPS of $0.31 and revenue of $3.09 billion, reflecting significant year-over-year growth.

Analyst Estimates and Zacks Rank: Recent positive revisions in analyst estimates indicate optimism for Chewy's business outlook, with the stock currently holding a Zacks Rank of #3 (Hold) and a Forward P/E ratio of 26.37, higher than the industry average.

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