Why Chewy Stock Could Double by 2027
More pet owners are shopping on Chewy (NYSE: CHWY) today, but that doesn't necessarily translate into a profitable company. In 2022, the market has been making it pretty clear that it hates unprofitable growth stocks. As a result, Chewy's share price has fallen a steep 69% from 52-week highs.
While Chewy has not yet reported a profit from its business, net sales grew 24% year over year to $8.9 billion. This is a fast-growing e-commerce business serving a $120 billion addressable market.
With Chewy's market cap at $12.8 billion, that level of sales growth suggests the stock could be significantly undervalued. Here's why the stock fell, and why it's now priced to deliver a potential double for investors over the next few years.
Source Fool.com
