Is Chewy Stock a Buy?
Chewy (NYSE: CHWY), the largest pure-play online retailer of pet food and supplies in the U.S., is a strong business with a clear path to grow long term, but does that make the stock a buy?
Chewy has grown rapidly since it launched in 2011, increasing its sales to $4.85 billion in its last fiscal year, which ended Feb. 2, 2020. Management's guidance calls for 40% growth to $6.80 billion of sales in fiscal 2020. That would mark an an acceleration from the previous year's 37% growth.
That's due in part to greater e-commerce adoption as a result of COVID-19. Chewy grew its number of active customers 27% last year, but that pace accelerated to 33% and 38% year-over-year in the first and second fiscal quarters, respectively. More people are flocking to online channels for their shopping, and Chewy has been a key beneficiary.
Source Fool.com
