Chewy Stock Up 37% YTD: What's the Best Move for Investors Now?

Zacks12-16

Chewy Inc. CHWY has surged an impressive 36.5% year to date, capturing the attention of investors. With this strong run on the bourses, many are wondering whether Chewy stock still has room to run or ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492210617?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2","is_english":true,"pubTime":"2024-12-16 23:31","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2492210617","market":"us","top_or_hot":-1,"title":"Chewy Stock Up 37% YTD: What's the Best Move for Investors Now?","media":"Zacks","content":"<div>\n<p>Chewy Inc. CHWY has surged an impressive 36.5% year to date, capturing the attention of investors. With this strong run on the bourses, many are wondering whether Chewy stock still has room to run or ...</p>\n\n<a href=\"https://finance.yahoo.com/news/chewy-stock-37-ytd-whats-153100979.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Chewy Stock Up 37% YTD: What's the Best Move for Investors Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChewy Stock Up 37% YTD: What's the Best Move for Investors Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-16 23:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/chewy-stock-37-ytd-whats-153100979.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Chewy Inc. CHWY has surged an impressive 36.5% year to date, capturing the attention of investors. With this strong run on the bourses, many are wondering whether Chewy stock still has room to run or ...</p>\n\n<a href=\"https://finance.yahoo.com/news/chewy-stock-37-ytd-whats-153100979.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CENT","symbol_name":"Central Garden & Pet Company","start_time":0,"source_url":"https://finance.yahoo.com/news/chewy-stock-37-ytd-whats-153100979.html","article_id":"2492210617","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492210617","pubTimestamp":1734363060,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Chewy Inc. CHWY has surged an impressive 36.5% year to date, capturing the attention of investors. With this strong run on the bourses, many are wondering whether Chewy stock still has room to run or if it is time to take profits. With its continued dominance in the pet care space and ambitious expansion plans, Chewy presents opportunities and potential risks. As investors look for their next best move, evaluating whether this rally is sustainable or if the stock is primed for a pullback is important.While Chewy’s year-to-date gain is impressive, the stock has underperformed the industry, which has risen 42.3%. However, the stock still outperformed the Retail-Wholesale sector and the S&P 500 index, which posted respective gains of 32.4% and 27.7%.Chewy stock closed at $32.26 last Friday, sitting 17.5% below its 52-week high of $39.10, reached on June 27, 2024. CHWY is trading above its 50 and 200-day moving averages, suggesting a bullish trend. With that in mind, let’s dive into CHWY’s","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CENT":"Central Garden & Pet Company","LU1941712348.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"AT\" (USD) ACC","BK4588":"碎股","BARK":"The Original Bark Corp.","WOOF":"Petco Health and Wellness Company, Inc.","BK4200":"专卖店","BK4211":"区域性银行","ISBC":"投资者银行","BK4122":"互联网与直销零售","BK4018":"居家用品","CHWY":"Chewy, Inc.","BK4548":"巴美列捷福持仓","LU1941712264.USD":"ALLIANZ PET AND ANIMAL WELLBEING \"A\" (USD) INC","BK4585":"ETF&股票定投概念","BK4547":"WSB热门概念"},"translate_title":"Chewy股票年初至今上涨37%：现在对投资者来说最好的举措是什么？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BARK":1,"CENT":1,"ISBC":1,"WOOF":1,"CHWY":0.9},"content_text":"Chewy Inc. CHWY has surged an impressive 36.5% year to date, capturing the attention of investors. With this strong run on the bourses, many are wondering whether Chewy stock still has room to run or if it is time to take profits. With its continued dominance in the pet care space and ambitious expansion plans, Chewy presents opportunities and potential risks. As investors look for their next best move, evaluating whether this rally is sustainable or if the stock is primed for a pullback is important.While Chewy’s year-to-date gain is impressive, the stock has underperformed the industry, which has risen 42.3%. However, the stock still outperformed the Retail-Wholesale sector and the S&P 500 index, which posted respective gains of 32.4% and 27.7%.\nCHWY Stock YTD Performance\nImage Source: Zacks Investment Research\nChewy stock closed at $32.26 last Friday, sitting 17.5% below its 52-week high of $39.10, reached on June 27, 2024. CHWY is trading above its 50 and 200-day moving averages, suggesting a bullish trend. With that in mind, let’s dive into CHWY’s prospects and determine the best course of action for your portfolio.\nCHWY Trades Above 50 & 200-Day Moving Averages\nImage Source: Zacks Investment Research\nDecoding Tailwinds Behind CHWY’s Impressive Run\nChewy has established itself as a dominant player in the online pet retail industry, leveraging innovative strategies and a customer-centric approach. The company’s expanding customer base, recurring revenue model and diversified service offerings, including veterinary clinics and pharmacy services, provide a solid foundation for continued growth. The company foresees fiscal 2024 net sales between $11.79 billion and $11.81 billion, implying approximately 6% year-over-year growth.One of the significant drivers of Chewy’s business is its Autoship program, which accounted for 80% of third-quarter fiscal 2024 net sales. With Autoship customer sales growing 8.7% to $2.3 billion, the program provides steady recurring revenues. By focusing on non-discretionary categories like consumables and healthcare, Chewy ensures revenue stability, even during macroeconomic uncertainties. Chewy's ability to grow its active customer base is noteworthy. The company added 160,000 customers sequentially in the third quarter, reaching 20.2 million active users. This growth is attributed to Chewy’s targeted marketing strategies, effective use of data analytics and enhancements to the user experience through its website and app. CHWY’s Net Sales Per Active Customer (“NSPAC”) reached $567 in the quarter, reflecting year-over-year growth of 4.2%.Chewy’s foray into the veterinary services market through Chewy Vet Care has unlocked a $25 billion total addressable market. By the end of the third quarter, Chewy operated six vet clinics and was on track to meet the high end of its target range of 4-8 clinics for fiscal 2024. These clinics serve as gateways for attracting new customers and embedding them into the Chewy ecosystem.Chewy's Sponsored Ads business is ramping up nicely and is on track to reach the low end of its long-term target of 1% to 3% of net sales by the end of 2024. This high-margin revenue stream enhances Chewy’s overall profitability while creating opportunities for vendors to promote their products. Chewy’s expansion into Canada, its first international foray, completed a full year of operations in the third quarter. The Canadian market is growing steadily with improvements in Autoship penetration, net sales and profitability.\nWhat Could Hinder Chewy Stock’s Momentum?\nWhile Chewy continues to lead the pet e-commerce space, several factors could exert downward pressure on the stock. Slowing growth, potential customer acquisition saturation and rising cost pressures are critical areas that investors should monitor.Despite the third-quarter adjusted EBITDA margin expanding to 4.8%, Chewy’s fourth-quarter margin guidance signals a sequential decline to 3.4%. This contraction is attributed to higher seasonal marketing costs and promotional activity during the holiday season. Chewy also operates in a highly price-sensitive market, where competitors such as Petco Health and Wellness Company, Inc. WOOF, Central Garden & Pet Company CENT and BARK, Inc. BARK quickly adjust their pricing strategies to attract customers. In addition, underlying inflationary pressures, especially in logistics, labor and raw materials, could squeeze margins. The company’s elevated advertising and marketing expenses, which reached $191.8 million or 6.7% of sales in the third quarter, reflect an aggressive push to acquire and retain customers. For the full year, these expenses are projected to reach the high end of the 6% to 7% guidance range. This may strain profitability if revenue growth does not pick up.\nHow Consensus Estimates Stack Up for CHWY\nThe Zacks Consensus Estimate for earnings per share has seen downward revisions. Over the past 30 days, analysts have lowered their estimates by 3 cents to 20 cents per share for the final quarter and by 7 cents to $1.08 for fiscal 2024.  \nImage Source: Zacks Investment Research\nBuy, Hold or Sell CHWY Stock?\nChewy’s solid financial performance, strategic initiatives and operational efficiencies make it a compelling choice. From the Autoship program and expanding healthcare offerings to the successful adoption of its mobile app and membership program, Chewy demonstrates the ability to innovate and grow across multiple dimensions. However, challenges remain for Chewy, including customer acquisition saturation, rising costs and increased competition. Despite recent margin gains, higher seasonal advertising and marketing costs could pressure profitability. Downward revisions in earnings estimates signal concerns about future performance. With risks and rewards in balance, it may be prudent to stay on the sidelines for now. CHWY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nCentral Garden & Pet Company (CENT) : Free Stock Analysis Report\nPetco Health and Wellness Company, Inc. (WOOF) : Free Stock Analysis Report\nChewy (CHWY) : Free Stock Analysis Report\nBARK Inc. (BARK) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492210617"}