CHWY Should I Buy
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Chewy Inc. (CHWY) is a good buy for a beginner investor with a long-term investment strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and attractive valuation make it a compelling opportunity despite hedge fund selling. The upcoming earnings announcement on March 25, 2026, could act as a catalyst for further price appreciation.
The technical indicators suggest a neutral to slightly bullish outlook. The MACD is positive at 0.303, indicating bullish momentum, while the RSI is neutral at 46.999. The stock is trading near its pivot level of 26.183, with resistance at 27.623 and support at 24.743. Converging moving averages suggest a potential breakout in either direction.
Strong financial performance in Q3 2026, with revenue up 8.3% YoY, net income up 1405.6% YoY, and EPS up 1300% YoY.
Positive analyst sentiment, with multiple firms maintaining Buy or Outperform ratings and price targets ranging from $28 to $
Chewy's commitment to customer experience and product expansion, enhancing brand loyalty.
Upcoming earnings announcement on March 25, 2026, which could act as a catalyst.
Hedge fund selling activity, with a 382.78% increase in selling over the last quarter.
Neutral insider trading activity, with no significant trends.
Slight post-market decline of -0.04%, indicating minor profit-taking.
Chewy reported strong financials for Q3 2026, with revenue of $3.116 billion (up 8.3% YoY), net income of $59.2 million (up 1405.6% YoY), EPS of 0.14 (up 1300% YoY), and gross margin of 29.78% (up 1.53% YoY). These metrics highlight robust growth and operational efficiency.
Analysts are bullish on Chewy. Barclays maintains an Overweight rating with a $48 price target, citing an attractive valuation. Raymond James upgraded the stock to Outperform with a $28 price target, citing the recent selloff as an opportunity. Wolfe Research and Goldman Sachs also maintain positive ratings, with price targets of $44 and $52, respectively. Mizuho named Chewy its Top Pick for 2026, emphasizing long-term growth drivers and competitive advantages.
