What Happened?
Shares of e-commerce pet food and supplies retailer Chewy (NYSE:CHWY) jumped 5.6% in the morning session after Wolfe Research upgraded the stock's rating from Hold to Buy. The research firm thinks Chewy will benefit from multiple catalysts in 2025, including "operational efficiency gains, Chewy Health, private labels, and ad revenue growth."
Is now the time to buy Chewy? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Chewy’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 17.9% on the news that the company reported strong second-quarter earnings results, with revenue, active customers, and EPS exceeding Wall Street's expectations. In addition, its EBITDA margin increased year on year, and free cash flow improved. Improved monetization also played a role in the results, as net sales per active customer clocked in at a record $565. Overall, this was an impressive quarter for the company.
Investors who bought $1,000 worth of Chewy’s shares 5 years ago would now be looking at an investment worth $1,219.
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