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.

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Source Fool.com