Why Chewy Stock Soared 26.7% in March
Shares of Chewy (NYSE: CHWY) soared 26.7% last month, according to data from S&P Global Market Intelligence. That was enough to drive the stock from $30 per share to $37, while the S&P 500 declined about 13%.
Chewy is an online retailer of pet food and pet supplies in the U.S. In March, after some extreme stock price volatility, investors quickly realized that Chewy is one of the few companies well positioned to benefit from so many housebound people. Many Americans are avoiding going to crowded places these days, and that includes pet stores and grocery stores.
But pet food is not a discretionary purchase. Pet owners will continue to buy food through thick and thin, and would cut back on almost everything else before letting their pets go hungry.
Source Fool.com
