Down 85%, Here's Why the Market Is Wrong About Chewy
As I write this, shares of pet e-commerce company (NYSE: CHWY) are hitting all-time lows of $17.51 -- maybe they'll be even lower by the time you're reading this. It's about an 85% drop from the stock's all-time high. I think I know the things that have caused the market to completely abandon this former market darling.
But I believe the market is dead wrong to give up on it so soon. If I'm right, Chewy stock is a wonderful buy today. Here's why.
The trends benefiting Chewy aren't new. Pet ownership in the U.S. is strong at 66% of households and spending is expected to increase 5% this year, according to the American Pet Products Association. Pew Research Center found that 97% of pet owners consider pets to be family members, suggesting spending on them isn't considered discretionary. And global e-commerce sales are expected to rise from 19.5% of retail spending in 2023 to 23% in 2027, according to Statista.
Source Fool.com
Chewy Inc Stock
The stock is one of the favorites of our community with 41 Buy predictions and 2 Sell predictions.
On the other hand, the target price of 37 € is below the current price of 37.46 € for Chewy Inc, so the potential is actually -1.23%.
