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Chewy Stock Well-Positioned to Make a Comeback
Chewy Stock Well-Positioned to Make a Comeback

Yahoo

time4 days ago

  • Business
  • Yahoo

Chewy Stock Well-Positioned to Make a Comeback

Chewy Inc (NYSE:CHWY) stock has been trending lower since its June 6, two-year high of $48.62, but maintains a healthy 51.3% year-over-year lead. A rebound might soon be in the cards, too, as the security is now trading within striking distance of a historically bullish trendline. Per Schaeffer's Senior Quantitative Analyst Rocky White, Chewy stock's recent pullback placed it within one standard deviation of its 260-day moving average. The equity was above this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, three other signals occurred over the last three years, after which the stock was higher one month later 67% of the time, averaging a 6.9% gain. From its current perch at $34.49, a similar move would place back above $36. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CHWY's 50-day put/call volume ratio ranks higher than 90% of annual readings. This suggests a sentiment shift could create additional tailwinds. Options look affordably priced, making this an excellent time to bet on the equity's next moves. This is per its Schaeffer's Volatility Index (SVI) of 41%, which stands in the 14th percentile of readings from the past year.

Here's Why Chewy (CHWY) Fell More Than Broader Market
Here's Why Chewy (CHWY) Fell More Than Broader Market

Yahoo

time09-07-2025

  • Business
  • Yahoo

Here's Why Chewy (CHWY) Fell More Than Broader Market

Chewy (CHWY) ended the recent trading session at $40.00, demonstrating a -2.49% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%. Heading into today, shares of the online pet store had lost 11.8% over the past month, lagging the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%. The upcoming earnings release of Chewy will be of great interest to investors. The company is predicted to post an EPS of $0.33, indicating a 37.5% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.08 billion, indicating a 7.83% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $12.48 billion, indicating changes of +23.08% and +5.21%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 12.9% upward. At present, Chewy boasts a Zacks Rank of #3 (Hold). In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 32.1. This indicates a premium in contrast to its industry's Forward P/E of 25. Also, we should mention that CHWY has a PEG ratio of 3.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.44. The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want 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 Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Is Chewy's 6.2% Q1 EBITDA Margin a Turning Point Toward Its Target?
Is Chewy's 6.2% Q1 EBITDA Margin a Turning Point Toward Its Target?

Yahoo

time08-07-2025

  • Business
  • Yahoo

Is Chewy's 6.2% Q1 EBITDA Margin a Turning Point Toward Its Target?

Chewy CHWY reported a 6.2% adjusted EBITDA margin in the first quarter of fiscal 2025, expanding 50 basis points year over year. Adjusted EBITDA rose 18.3% to $192.7 million from $162.9 million a year ago. These results highlight Chewy's disciplined execution and its progress toward long-term profitability improvement was driven by a focus on high-margin, recurring revenue streams, particularly the Autoship program. Chewy also expanded its sponsored ads business, which remains the largest contributor to margin gains. Together, these initiatives have shifted the sales mix toward more profitable categories and improved margin discipline further supported the company's performance. SG&A was held at 18.5% of net sales, reflecting tight cost control, while the timing of marketing campaigns delivered modest leverage in the first quarter. Adjusted earnings per share increased 12.9% year over year to 35 cents, underscoring consistent bottom-line growth alongside margin reaffirmed its 2025 adjusted EBITDA margin outlook of 5.4-5.7%, with the mid-point implying a 75-basis-point improvement from that reported in 2024. Approximately 60% of this expansion is expected to come from gross margin gains, with the rest from operating leverage. Chewy also expects to convert about 80% of adjusted EBITDA into free cash flow for the first quarter is typically the most profitable quarter of the year, management expressed confidence in achieving its long-term adjusted EBITDA margin goal of 10%. Reaching the mid-point of 2025 guidance will already mark a 220-basis-point improvement over the past two years, demonstrating steady progress toward this target. Central Garden & Pet CENT showcased resilient margin performance in second-quarter fiscal 2025 despite a 7% revenue drop to $833.5 million. Cost and Simplicity initiatives expanded Central Garden & Pet's gross margin by 180 basis points to 32.8%, with adjusted earnings per share rising to $1.04 from 99 cents in the prior year period. Central Garden & Pet reaffirmed its full-year EPS guidance of $2.20 or higher, showing confidence despite macroeconomic Health and Wellness Company, Inc. WOOF in first-quarter fiscal 2025 focused on restoring profitability through disciplined execution. The gross margin expanded 30 basis points to 38.2%, aided by Petco Health and Wellness' better pricing, cost control and productivity gains in services. Petco Health and Wellness' adjusted EBITDA margin improved 105 basis points to 6%. Shares of Chewy have gained 23.3% year to date compared with the industry's growth of 7.4%. Image Source: Zacks Investment Research From a valuation standpoint, CHWY trades at a forward price-to-sales ratio of 1.33X, below the industry's average of 2.02X. It has a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CHWY's fiscal 2025 earnings implies year-over-year growth of 23.1%, whereas the same for fiscal 2026 indicates an uptick of 19.5%. Estimates for fiscal 2025 and 2026 have been upwardly revised by five cents and one cent, respectively, over the past 30 days. Image Source: Zacks Investment Research CHWY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want 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 Central Garden & Pet Company (CENT) : Free Stock Analysis Report Petco Health and Wellness Company, Inc. (WOOF) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Chewy, Inc. (CHWY): A Bull Case Theory
Chewy, Inc. (CHWY): A Bull Case Theory

Yahoo

time07-07-2025

  • Business
  • Yahoo

Chewy, Inc. (CHWY): A Bull Case Theory

We came across a bullish thesis on Chewy, Inc. on Stock Region Research's Substack by Stock Region. In this article, we will summarize the bull's thesis on CHWY. Chewy, Inc.'s share was trading at $42.63 as of June 25th. CHWY's trailing and forward P/E ratios were 46.85 and 36.50, respectively, according to Yahoo Finance. A pet parent at an e-commerce platform, selecting a product for their dear companion. Chewy (CHWY) continues to impress investors with its consistent performance, reinforcing its reputation as a dependable growth story in the pet e-commerce space. For fiscal Q1 2025, the company delivered earnings of $0.35 per share, surpassing expectations, alongside revenue of $3.12 billion. Notably, Chewy's active customer base rose for the second consecutive quarter to 20.76 million, highlighting sustained consumer loyalty and the appeal of its autoship subscription model. This steady uptick in users underlines the brand's relevance and stickiness, even in a competitive environment. Investor sentiment remains upbeat, bolstered by a recent stock offering priced at $41.95 per share—an indicator of strong institutional interest and market confidence. Despite short-term fluctuations in share price, the stock retains robust technical strength, as reflected in its stellar 98/99 IBD Composite Rating. Analysts and traders are eyeing key technical levels above $42.88 and below $42.40 as short-term indicators. While some skepticism persists in the broader market, the growth in customer count and reliable financial performance suggests resilience and underlying momentum. Chewy's dependable fundamentals, along with its emotional appeal to pet lovers, position it as both a rational and sentimental investment choice. As the pet economy continues to expand and more consumers turn to online platforms for recurring purchases, Chewy stands out with a business model designed for retention and scale. With a strong base, loyal customer growth, and visible investor appetite, the company appears well-poised for continued upside, making it a compelling opportunity for both retail and institutional investors. Previously, we covered a on Coupang, Inc. by GabGrowth in June 2025, which highlighted the company's diversified ecosystem and global expansion strategy. The company's stock price has appreciated by approximately 1.3% since our coverage. This is because the thesis is still playing out. Stock Region shares a similar perspective but emphasizes Chewy's strong customer retention and steady e-commerce performance. CHWY isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of CHWY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio

Chewy, Inc. Announces Pricing of Upsized Offering of Class A Common Stock by Selling Stockholder and Concurrent Repurchase
Chewy, Inc. Announces Pricing of Upsized Offering of Class A Common Stock by Selling Stockholder and Concurrent Repurchase

Yahoo

time24-06-2025

  • Business
  • Yahoo

Chewy, Inc. Announces Pricing of Upsized Offering of Class A Common Stock by Selling Stockholder and Concurrent Repurchase

PLANTATION, Fla., June 24, 2025--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) ("Chewy"), a trusted destination for pet parents and partners everywhere, announced today the pricing of an upsized underwritten public offering of 23,952,096 shares of its Class A common stock, par value $0.01 per share, by Buddy Chester Sub LLC (the "Selling Stockholder"), which is an entity affiliated with funds advised by BC Partners PE, LP ("BC Partners"), Chewy's largest shareholder, at a price to the public of $41.95 per share (the "Offering"). The Selling Stockholder granted the underwriter a 30-day option to purchase up to an additional 3,592,815 shares of Class A common stock. Chewy will not sell any shares of its Class A common stock in the Offering and will not receive any proceeds from the sale of the shares of Class A common stock being offered by the Selling Stockholder. In addition, as previously announced, concurrent with the closing of the Offering, Chewy has agreed to purchase from the Selling Stockholder $100.0 million of Chewy's Class A common stock at a price per share equal to the per share purchase price to be paid by the underwriter in the Offering (the "Concurrent Repurchase"). The Concurrent Repurchase was approved by a special committee of Chewy's Board of Directors, consisting solely of independent directors not affiliated with BC Partners. The repurchased shares will be cancelled and retired upon completion of the Concurrent Repurchase. The Concurrent Repurchase is being executed separately from the Company's existing $500 million share repurchase program authorized on May 24, 2024, which will be unaffected by this transaction. We expect the closing of the Concurrent Repurchase to occur substantially concurrently with the closing of this offering. The Offering is not conditioned upon the closing of the Concurrent Repurchase, but the Concurrent Repurchase is conditioned upon the closing of the Offering. Prior to the Offering and Concurrent Repurchase, Chewy had approximately 196 million shares of Class A common stock and 220 million shares of Class B common stock outstanding. If the Offering and Concurrent Repurchase are completed (assuming no exercise of the underwriter's option to purchase additional shares of Class A Common Stock), Chewy will have approximately 219 million shares of Class A common stock and approximately 193 million shares of Class B common stock outstanding. The Offering and Concurrent Repurchase are expected to close by June 25, 2025, subject to customary closing conditions. J.P. Morgan is acting as the sole underwriter for the Offering. Chewy has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (the "SEC") for the Offering. A preliminary prospectus supplement and accompanying prospectus relating to the Offering will be filed with the SEC and will be available on the SEC's website. Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus and other documents Chewy has filed with the SEC for more complete information about Chewy and the Offering. You may get these documents for free by visiting EDGAR on the SEC website at Alternatively, Chewy or J.P. Morgan will arrange to send you the preliminary prospectus supplement and accompanying prospectus relating to the Offering if you contact J.P. Morgan: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@ and postsalemanualrequests@ This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About Chewy Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our websites and mobile applications allow our pet parents to manage their pets' health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with approximately 3,200 of the best and most trusted brands in the pet industry, and we create and offer our own private brands. Through our websites and mobile applications, we offer our customers approximately 130,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers. Forward-Looking Statements This communication contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 ("PSLRA"), and such statements are intended to qualify for the protection of the safe harbor provided by the PSLRA. All statements other than statements of historical facts contained in this communication are forward-looking statements, which involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," or "would," or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to our ability to close the Offering and Concurrent Repurchase and complete any repurchases under our share repurchase program following the Offering and Concurrent Repurchase. You should not rely on forward-looking statements as predictions of future events, and you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of factors. We have based the forward-looking statements contained in this communication primarily on our current assumptions, expectations and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025, the preliminary prospectus supplement and accompanying prospectus and elsewhere in our filings with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this communication. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this communication to reflect events or circumstances after the date of this communication or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. View source version on Contacts Investor Contact:ir@ Media Contact:Diane Pelkeydpelkey@ Sign in to access your portfolio

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