CHWY Stock Recent News

People are increasingly treating their pets like family members, and Chewy (CHWY -6.53%) has taken advantage of this trend to become the leading seller of pet food and accessories.

On March 27, analysts at RBC Capital Markets reiterated their buy rating for Chewy (CHWY -1.10%) stock with a $42 price target that suggests more than 25% upside from where the stock trades as of this writing. They weren't alone in their optimism.

If you were looking for a reason to not buy shares of pet e-commerce company Chewy (CHWY 3.17%), then its lack of customer growth in recent years was a pretty good one. It overshadowed many otherwise good things happening at the company.

In recent times, investors have focused on the potential impact of President Trump's import tariffs on the economy -- and that's upset the performance of growth stocks, with the idea that they could be the first to experience pressure if the economy weakens. The growth-heavy Nasdaq and the broader S&P 500 each shifted into correction territory in March, and though they've both emerged from the zone, positive momentum hasn't yet returned to the market.

In this podcast, Motley Fool analyst Tim Beyers and host Mary Long discuss the difference in dollar stores and Chewy's latest earnings.

One stock that has quietly been a very strong performer over the past year is Chewy (CHWY -1.45%). Shares of the online pet products retailer rose following the release of its fiscal fourth-quarter results on Wednesday, with the stock up more than 120% over the past year as of this writing.

Chewy exceeded earnings expectations in Q4, showing strong revenue growth and improved customer monetization, with average revenue per customer rising 5% year-over-year to $578. The pet store demonstrated solid free cash flow growth, with an 134% year-over-year increase and a free cash flow margin expansion of 3 PP Y/Y. The pet niche is a passion niche, with people having a high propensity to spend a lot of money, leading to a strong recurring revenue and FCF picture.

The stock market has dropped lately, with the S&P 500 index down 3.3% over the last month through March 25. Growth stocks, as measured by the S&P 500 Growth Index, fared worse, losing 4.5% during this time.

The FQ4 2024 results and F2025 guidance failed to inspire a rally because strength was expected, and guidance merely affirmed the outlook. However, the results are good, and the outlook is robust relative to peers and retailers in general.

Chewy CEO Sumit Singh discusses trends in pet ownership, saying cats are "a little more favorable" than dogs.