Is Chewy Stock a Buy?
This has been a challenging year for investors. The 40-year high inflation has led to greater economic uncertainty, pushing the tech-heavy Nasdaq Composite down 26% year to date. But smart investors understand that bear markets come and go. What's most important to growing your nest egg over the long term is not market timing but identifying quality companies worth buying.
With that in mind, a business can stand out by showing it can maintain stable revenue growth during periods when customers tighten their wallets. Chewy (NYSE: CHWY) has passed that test. Through the first half of the year, this online seller of pet products posted double-digit sales growth while also showing a small uptick in its profit margin. Not many e-commerce companies have managed to increase their profit margin in 2022 during this period of rising expenses.
However, in its recent investor update, Chewy revised its full-year sales growth forecast down from a range of 15% to 17% to between 11% and 12%. That's not bad relative to other retailers' guidance, but it was still enough to send the stock down following the news.
Source Fool.com
