Should You Buy Chewy Inc (CHWY) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
31.020
1 Day change
-0.89%
52 Week Range
48.620
Analysis Updated At
2026/01/28
CHWY is NOT a good buy right now for a beginner long-term investor who is impatient. Fundamentals and Wall Street sentiment are generally positive, but the stock is in a confirmed short-to-intermediate downtrend with weakening momentum, while hedge funds and insiders have been selling. With price sitting right on key support (~31), the near-term risk of a breakdown toward ~30 is meaningful. Best decision today: HOLD / do not initiate a new position at this moment.
Technical Analysis
Trend/momentum is bearish. Moving averages are stacked bearishly (SMA_200 > SMA_20 > SMA_5), signaling a prevailing downtrend. MACD histogram is negative (-0.137) and negatively expanding, showing downside momentum is strengthening rather than stabilizing. RSI(6) at 30.69 is near oversold, which can enable a bounce, but by itself it is not a buy signal while MACD and MA structure remain bearish.
Key levels: Current price ~31.09 is sitting on S1 ~31.112 (immediate support). Next support is S2 ~30.171. If 31 fails, the stock can quickly drift toward ~30. On the upside, the pivot/resistance is ~32.634, then R1 ~34.156.
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock recently.
Pattern-based short-term odds provided also lean slightly negative (next week and next month expected returns are negative), which matches the bearish tape.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options positioning is mildly bullish (both put/call ratios < 1, meaning relatively more calls than puts), suggesting market participants are not strongly hedging for a large drop right now. However, implied volatility is very elevated (30D IV ~62.98 vs historical volatility ~27.56; IV percentile ~88.4), meaning options are pricing big moves and uncertainty. Also, today’s option volume is low vs the 30-day average (~35.66%), so the bullish signal from put/call is not backed by unusually strong participation.
Technical Summary
Sell
10
Buy
4
Positive Catalysts
Autoship-driven loyalty and steady demand in pet essentials; company expanding into higher-value adjacencies (pet insurance, telehealth) and healthcare initiatives. Recent news highlights valuation appearing reasonable on forward metrics and continued revenue growth (Q3 up 8.3% YoY). Analyst sentiment remains largely constructive with multiple Buy/Outperform ratings and price targets far above the current price, and Mizuho naming CHWY its overall Top Pick (2026 outlook).
Neutral/Negative Catalysts
Trading trends show hedge funds selling heavily (selling amount +382.78% QoQ) and insiders selling (selling amount +110.18% MoM), which is a notable bearish behavioral signal. News also flags ongoing profitability challenges and a consumer sentiment backdrop described as strained (even if spending underpinnings are intact). High implied volatility indicates the market expects instability.
Financial Performance
Latest reported quarter (2026/Q3): Revenue grew to ~$3.1166B (+8.30% YoY), showing continued top-line expansion. Profitability improved sharply: Net income ~$59.2M (+1405.6% YoY) and EPS $0.14 (+1300% YoY), suggesting meaningful operating leverage versus last year’s base. Gross margin improved to ~29.78% (+1.53% YoY), reinforcing that margins are trending in the right direction.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent analyst actions skew positive overall: multiple firms raised price targets after Q3 results (TD Cowen to $48, Barclays to $52, Goldman Sachs to $52) and kept Buy/Overweight stances; Wolfe kept Outperform while trimming PT slightly (to $44). Some caution exists (UBS Neutral with a reduced PT to $41; earlier Citi PT cut to $42 though still Buy; BofA removed CHWY from a best-ideas list). Net view from Wall Street pros: pros are improving margins, customer growth, and platform/healthcare/ads optionality; cons are sensitivity to consumer spending and the need to sustain profitability gains. Overall Street stance is bullish, but the tape and selling flows are currently working against it.
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 USD and a high forecast of 52 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
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 USD and a high forecast of 52 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.
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 31.300
Low
42
Averages
47.06
High
52
Current: 31.300
Low
42
Averages
47.06
High
52
Mizuho
Neutral
maintain
$165 -> $185
AI Analysis
2026-01-05
Reason
Mizuho
Price Target
$165 -> $185
AI Analysis
2026-01-05
maintain
Neutral
Reason
Mizuho raised the firm's price target on Five Below (FIVE) to $185 from $165 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the retailing broadlines and hardlines consumer internet space as part of its 2026 outlook. The group enters 2026 with "signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact," the analyst tells investors in a research note. Mizuho installed Chewy (CHWY) as its overall Top Pick, and dropped Walmart (WMT), Lowe's (LOW), and O'Reilly (ORLY) off of its Top Picks list.
Mizuho
David Bellinger
Outperform
maintain
$115 -> $125
2026-01-05
Reason
Mizuho
David Bellinger
Price Target
$115 -> $125
2026-01-05
maintain
Outperform
Reason
Mizuho analyst David Bellinger raised the firm's price target on Walmart to $125 from $115 and keeps an Outperform rating on the shares. The firm adjusted ratings and price targets in the retailing broadlines and hardlines consumer internet space as part of its 2026 outlook. The group enters 2026 with "signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact," the analyst tells investors in a research note. Mizuho installed Chewy (CHWY) as its overall Top Pick, and dropped Walmart (WMT), Lowe's (LOW), and O'Reilly (ORLY) off of its Top Picks list.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CHWY
