This Is Chewy's Biggest Opportunity, and It Could Translate to a Massive Win for Investors. Time to Buy the Stock?
Pet e-commerce firm (NYSE: CHWY) has had a difficult start to 2024 with the stock losing about a third of its value so far this year. One of the biggest reasons behind this is that the company forecast overall pet industry growth to be modest this year and did not expect any big benefit from price increases.
However, the company still has a massive opportunity in front of it that investors may be ignoring. So is now the time to buy the stock?
One of the first things to understand about Chewy is that it has a largely recurring business model. About 85% of its business comes from nondiscretionary items such as pet food and pet health products. Meanwhile, over 75% of its sales come from customers who are on autoship subscription programs. In 2023, it generated nearly $8.5 billion in sales from autoship customers.
Source Fool.com
Chewy Inc Stock
With 38 Buy predictions and 3 Sell predictions Chewy Inc is one of the favorites of our community.
As a result the target price of 27 € shows a positive potential of 32.09% compared to the current price of 20.44 € for Chewy Inc.
