CHWY Should I Buy
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Chewy Inc (CHWY) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company shows strong growth potential, solid financial performance, and positive catalysts such as revenue growth, margin expansion, and AI-driven operational efficiencies. Despite some hedge fund selling, the long-term outlook remains attractive.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 72.283, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near resistance levels (R1: 26.774, R2: 27.874), suggesting limited short-term upside but potential for long-term gains.
Chewy's Q4 revenue exceeded expectations, growing 8.1% YoY. The company forecasts 8%-9% revenue growth for 2026, supported by active customer growth, Autoship penetration, and strategic initiatives like Chewy Vet Care and private brands. Analysts highlight strong EBITDA growth, AI-driven cost savings, and long-term market share gains.
is down 1.79%, which may weigh on investor sentiment.
In Q4 2026, Chewy reported revenue of $3.26 billion, up 0.53% YoY. Net income increased by 71.99% YoY to $39.2 million, and EPS rose by 80% YoY to $0.09. Gross margin improved to 29.4%, up 3.09% YoY, indicating strong profitability and operational efficiency.
Analysts have lowered price targets but maintain mostly positive ratings. UBS, Wedbush, Goldman Sachs, TD Cowen, and others see strong long-term growth potential, with price targets ranging from $32 to $46. Analysts highlight Chewy's solid Q4 performance, revenue growth, and margin expansion as key positives.
