A Bull Market Is Coming: 3 Reasons to Buy Chewy Stock
Chewy is a fast-growing e-commerce business focusing on pet supplies, but you wouldn't know that by looking at its recent stock performance. Shares of Chewy (NYSE: CHWY) have fallen 72% from their all-time high a few years ago, and the company's fourth-quarter earnings report didn't help. Despite posting double-digit percentage sales growth, the stock fell over weak earnings guidance and customer growth.
Chewy has all the makings of a money-maker for long-term investors, but the stock got ahead of itself when sales temporarily accelerated in 2020, which led to a steep decline last year as growth reverted back to pre-pandemic levels. Here are three reasons the market correction is a buying opportunity.
Chewy is in the early stages of tackling a massive industry for pet supplies, so investors shouldn't expect to see surging profits. The numbers that matter right now are overall sales growth, which grew 13% year over year last quarter, and auto-ship customer sales, which increased by 18% and generated 73% of total sales in the quarter.
Source Fool.com
