Could Chewy Be A Millionaire-Maker Stock?
Chewy (NYSE: CHWY) is a rapidly growing online pet retailer in the U.S. After launching in 2011, it is expected to total almost $5 billion in net sales in 2019, and it continues to expand at an impressive pace. While some suggest Amazon (NASDAQ: AMZN) is too powerful to take on in e-commerce, Chewy's success shows that it is possible to compete against the online retail leader. Chewy's strategy has been to focus intently on one specific category, pets, and do it better than everyone else. When it comes to pet supply prices, selection, and service, no one -- not even Amazon -- is doing it better right now. So is Chewy a millionaire-maker stock?
There is no standard definition for the term "millionaire-maker," but fellow Fool Brian Stoffel defined it as well as anyone when he said it was "a stock that can return 10 times its value in 20 years." That works out to a 12.2% average annualized return for 20 years, which is well above the roughly 10% return that the S&P 500 has averaged over the last 90 years. To achieve that sort of superior return, a public company needs at least three things:
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