Online pet products retailer (NYSE: CHWY) is successfully competing with retail giants like Amazon and Walmart. Revenue reached $2.78 billion in the second quarter, up 14.3% year over year as customers ramped up their spending. The company is profitable as well, although just barely. Net income slumped a bit to $19 million in Q2.

Despite Chewy's growing sales, the stock has been hammered over the past few years. This year alone, Chewy stock is down about 35% following its post-earnings rout. Since peaking during the pandemic, the stock has tumbled by nearly 80%.

This steep decline doesn't make Chewy stock a bargain. Given the headwinds the company is facing, Chewy stock still looks too expensive.

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Source Fool.com