Track market-moving stories before they get noisy

Chewy’s Growth Engine Is Stronger Than the Market ThinksChewy NYSE: CHWY reported second-quarter fiscal 2026 net sales of $3.33 billion, up 7.3% from a year earlier and at the high end of its guidance range, as active customer growth, higher spending per customer and Autoship sales supported results amid continued pressure on pet-sector discretionary spending.

Chief Executive Officer Sumit Singh said the broader pet market did not experience a meaningful consumer recovery during the quarter, though conditions also did not worsen from the trends seen at the end of the first quarter. He said Chewy continued to outperform the broader pet category by roughly two to three times and gain market share.

Get Chewy alerts:

From CrowdStrike to Chewy, These Tanking Stocks Are Announcing BuybacksExcluding contributions from acquired businesses SmartPak and Modern Animal, organic net sales rose 5.7% year over year. The company ended the quarter with 21.7 million active customers, an increase of 3.8%, while net sales per active customer reached $602.

Autoship customer sales climbed 9.3% to $2.8 billion and represented 84.6% of total net sales. Singh said the recurring-sales model remains a key source of revenue durability, while Chewy continued to add customers, improve retention, reactivate lapsed customers and expand engagement across its ecosystem.

Consumer Spending Remains Selective Chewy Gobbles up Market Share in 2026: Poised to Advance in Q2Chewy said pressure on discretionary purchases and premiumization continued during the quarter, affecting both Consumables and Hardgoods. Singh said consumers remained focused on core food, medications and health-oriented products, while treats and toppers were more exposed to discretionary spending pressures.

Chief Financial Officer Chris Deppe said treats sales growth slowed more sharply than sales of core food. Still, he said industry data indicated that the broader Consumables market was roughly flat year over year, while Chewy delivered mid-single-digit growth in the category. Hardgoods sales increased in the mid-teens, supported by assortment and merchandising improvements, according to the company.

Singh said pet-industry conditions reflected both consumer pressures and softness in dog adoption and household formation. He added that Chewy does not expect pricing to provide a material benefit to sales growth this year, though the company also does not anticipate broad category deflation or irrational promotional activity.

Profitability Exceeds Expectations, With Timing Benefits Adjusted EBITDA totaled $227 million, representing a 6.8% margin and exceeding Chewy’s prior guidance of 6.3% to 6.4%. Adjusted net income was $149 million, or $0.36 per diluted share.

Deppe said essentially all of the outperformance relative to the company’s margin expectations came from timing-related and discrete benefits. About $10 million of the benefit came primarily from tariff refunds received earlier than anticipated and rebates that shifted from the second half into the second quarter. The quarter also included more than $5 million of benefits from gift-card breakage, inventory adjustments and vendor-funded merchandising activity.

Gross margin was 30.4%, flat year over year and up 30 basis points from the first quarter. Deppe said the company expects gross margin to decline modestly sequentially in the third quarter, in line with seasonal patterns, although it expects gross margin to expand for the full year at a more moderate pace than in fiscal 2025.

Non-GAAP selling, general and administrative expense was 18.4% of sales, compared with 19.1% a year earlier. The company cited improved fulfillment-center utilization, lower variable costs to serve, headcount discipline, automation and AI-enabled productivity as drivers of 70 basis points of year-over-year SG&A leverage.

Health, Acquisitions and AI Remain Strategic Priorities Chewy said its health businesses continued to expand. The Chewy Vet Care clinic portfolio delivered triple-digit revenue growth, while the company said Modern Animal performed ahead of its expectations following its acquisition. Chewy completed the $400 million Modern Animal acquisition during the quarter.

Singh said Modern Animal and Chewy Vet Care offer complementary capabilities, unit economics and telehealth offerings. SmartPak, Chewy’s equine, farm and exotics business, also performed ahead of expectations. The business recorded its seventh consecutive quarter of mid-double-digit year-over-year sales growth, according to Singh.

The company also highlighted progress in deploying artificial intelligence across customer service, pharmacy and veterinary operations. Chewy launched its AI-powered customer assistant, Kai, to a select group of mobile-app users. Singh said about 30% of chats were resolved through self-service for common requests involving orders, returns, Autoship and account management.

Chewy also began using AI tools for customer-care agents and pharmacy workflows, while its Callie voice capability is supporting appointment confirmations, scheduling and follow-ups at select Chewy Vet Care locations. The company expects AI initiatives to generate low tens of millions of dollars in cost savings during fiscal 2026 and about $50 million on an annualized basis in fiscal 2027.

Singh cautioned that AI savings should not be viewed as a standalone amount that will flow directly to the bottom line, as the company expects the efficiencies to offset ordinary cost pressures and potentially fund growth investments.

Guidance Raised and Narrowed Chewy raised and narrowed its fiscal 2026 outlook, citing more stable consumer trends, continued market-share gains and better-than-expected contributions from SmartPak and Modern Animal. The company now expects full-year net sales of $13.46 billion to $13.57 billion, representing growth of 6.8% to 7.7%.

Organic net sales are expected to grow 5.5% to 6.3% for the year. The company said the midpoint of the forecast does not assume a meaningful improvement in consumer conditions.

Full-year adjusted EBITDA margin is expected to be 6.7% to 6.8%, compared with prior guidance of 6.6% to 6.8%. At the midpoint, the outlook implies adjusted EBITDA of $912 million and more than 100 basis points of year-over-year margin expansion. Third-quarter net sales are projected at $3.323 billion to $3.358 billion, with adjusted EBITDA margin of 6.6% to 6.7% and adjusted diluted earnings per share of about $0.39. Chewy generated $90 million in free cash flow during the quarter and ended the period with $612 million in cash equivalents and marketable securities, as well as more than $1 billion in total available liquidity. The company issued $600 million in term loans and repurchased $200 million of stock, buying back 9.9 million shares during the quarter.

About Chewy (NYSE:CHWY)Chewy, Inc NYSE: CHWY is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Chewy Right Now?Before you consider Chewy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Chewy wasn't on the list.

While Chewy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Chewy (CHWY -9.18%) stock is falling today on the heels of the company's latest quarterly report. The pet products e-commerce specialist's share price was down 7.7% as of 11 a.m. ET. The S&P 500 was down 0.3% at the same point in the daily session, and the Nasdaq Composite was down 0.5%.

The broader market is seeing moderate bearish momentum today as investors react to macroeconomic concerns, and Chewy's latest quarterly report has also failed to spur net buying action. As of this writing, the stock is now down roughly 35% year to date.

Image source: Getty Images.

Chewy's quarterly results weren't bad Before the market opened this morning, Chewy published results for the second quarter of its current fiscal year -- a period that ended on Aug. 2. The company's non-GAAP (adjusted) earnings per share of $0.36 in the period were in line with the average Wall Street analyst estimate, and sales of $3.33 billion topped the average forecast by roughly $10 million. Revenue increased roughly 7.4% year over year despite a challenging retail backdrop, and the company's gross margin of 30.4% matched last quarter's level.

Premium Feature

Moneyball Superscore

72/100

Today's Change

(

-9.18

%) $

-2.14

Current Price

$

21.14

What's next for Chewy? While Chewy stock is getting hit with sell-offs today, the company actually raised its full-year sales guidance. Management now expects full-year sales to come in between $13.46 billion and $13.57 billion -- up from its previous target for sales between $13.4 billion and $13.55 billion.

Even though the midpoint of the company's new guidance range exceeded the average analyst target of $13.48 billion in sales for the fiscal year, Chewy is seeing a valuation pullback today. The pet-products retailer has continued to execute efficiently even as consumer pressures are leading to more cautious spending in the category. Still, investors are concerned about what the macro backdrop means for the business's near-term performance.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy.

PLANTATION, Fla.--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, has released its financial results for the second quarter of fiscal year 2026 ended August 2, 2026.

Fiscal Q2 2026 Highlights:

Net sales of $3.33 billion increased 7.3 percent year over year or 5.7 percent excluding SmartPak and Modern Animal contributions Gross margin of 30.4 percent stayed consistent year over year Net income of $80.5 million, including share-based compensation expense and related taxes of $85.9 million Net margin of 2.4 percent increased 40 basis points year over year Basic earnings per share of $0.20, an increase of $0.05 year over year Diluted earnings per share of $0.20, an increase of $0.06 year over year Adjusted EBITDA(1) of $226.7 million, an increase of $43.4 million year over year Adjusted EBITDA margin(1) of 6.8 percent increased 90 basis points year over year Adjusted net income(1) of $148.8 million, an increase of $7.7 million year over year Adjusted basic earnings per share(1) of $0.37, an increase of $0.03 year over year Adjusted diluted earnings per share(1) of $0.36, an increase of $0.03 year over year “Chewy delivered a strong second quarter, with growth of 7.3% to $3.33 billion of net sales at the high end of our guidance, and a 6.8% Adj. EBITDA margin, exceeding our expectations,” said Sumit Singh, Chief Executive Officer of Chewy. “The durability of our recurring revenue base, continued customer growth, and disciplined execution give us confidence to raise our full-year revenue and profitability outlook, while continuing to invest in compelling opportunities that deepen customer engagement and create long-term shareholder value.”

Management will host a conference call and webcast to discuss Chewy's financial results today at 8:00 am ET.

Chewy Fiscal Second Quarter 2026 Financial Results Conference Call
When: Wednesday, September 9, 2026
Time: 8:00 am ET
Live webcast and replay: https://investor.chewy.com
Conference call registration: https://events.q4inc.com/attendee/640129598

(1) Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted basic and diluted earnings per share are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

About Chewy

Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies, and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our websites and mobile applications allow our pet parents to manage their pets’ health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with approximately 4,000 of the best and most trusted brands in the pet industry, and we create and offer our own private brands. Through our websites and mobile applications, we offer our customers approximately 190,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers.

Forward-Looking Statements

This communication contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this communication, including statements regarding our share repurchase program, our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words.

Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ materially from those in such forward-looking statements, including but not limited to, our ability to: sustain our recent growth rates and successfully manage challenges to our future growth, including introducing new products or services, improving existing products and services, and expanding into new jurisdictions and offerings; successfully respond to business disruptions; successfully manage risks related to the macroeconomic environment, including any adverse impacts on our business operations, financial performance, supply chain, workforce, facilities, customer services and operations; acquire and retain new customers in a cost-effective manner and increase our net sales, improve margins and maintain profitability; manage our growth effectively; maintain positive perceptions of the Company and preserve, grow, and leverage the value of our reputation and our brand; limit operating losses as we continue to expand our business; forecast net sales and appropriately plan our expenses in the future; estimate our market share; strengthen our current supplier relationships, retain key suppliers, and source additional suppliers; negotiate acceptable pricing and other terms with third-party service providers, suppliers and outsourcing partners and maintain our relationships with such parties; mitigate changes in, or disruptions to, our shipping arrangements and operations; optimize, operate and manage the expansion of the capacity of our fulfillment centers; provide our customers with a cost-effective platform that is able to respond and adapt to rapid changes in technology; limit our losses related to online payment methods; maintain and scale our technology, the reliability of our websites, mobile applications, and network infrastructure, including through the use of artificial intelligence; maintain adequate cybersecurity with respect to our systems and retain third-party service providers that do the same with respect to their systems; maintain consumer confidence in the safety, quality and health of our products; limit risks associated with our suppliers and our outsourcing partners; comply with existing or future laws and regulations in a cost-efficient manner; utilize net operating loss and tax credit carryforwards, and other tax attributes; adequately protect our intellectual property rights; successfully defend ourselves against any allegations or claims that we may be subject to; attract, develop, motivate and retain highly-qualified and skilled employees; respond to economic conditions, industry trends, and market conditions, and their impact on the pet products market; reduce merchandise returns or refunds; respond to severe weather and limit disruption to normal business operations; manage new acquisitions, investments or alliances, and integrate them into our existing business; successfully compete in new offerings; manage challenges presented by international markets; successfully compete in the pet products and services health and retail industry, especially in the e-commerce sector; comply with the terms of our credit facility; raise capital as needed; and maintain effective internal control over financial reporting.

You should not rely on forward-looking statements as predictions of future events, and you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of factors. We have based the forward-looking statements contained in this communication primarily on our current assumptions, expectations, and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” included under Part 1, Item 1A in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026, in our other filings with the Securities and Exchange Commission, our subsequent quarterly reports, and elsewhere in this communication. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this communication. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this communication. While we believe that such information provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this communication to reflect events or circumstances after the date of this communication or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

CHEWY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

  As of

August 2,
2026

February 1,
2026

Assets

(Unaudited)

Current assets:

Cash and cash equivalents

$

611.0

$

860.1

Marketable securities

1.2

18.7

Accounts receivable

232.1

222.2

Inventories

924.7

864.8

Prepaid expenses and other current assets

76.3

70.0

Total current assets

1,845.3

2,035.8

Property and equipment, net

624.8

552.3

Intangible assets, net

149.7

0.3

Operating lease right-of-use assets

482.1

467.9

Goodwill

334.1

39.4

Deferred tax assets

264.7

232.2

Other non-current assets

39.9

38.5

Total assets

$

3,740.6

$

3,366.4

Liabilities and stockholders’ equity

Current liabilities:

Trade accounts payable

$

1,166.0

$

1,221.4

Accrued expenses and other current liabilities

1,033.4

1,080.2

Current portion of long-term debt

3.0

—

Total current liabilities

2,202.4

2,301.6

Operating lease liabilities

527.2

518.7

Long-term debt, net

588.7

—

Other long-term liabilities

51.8

48.2

Total liabilities

3,370.1

2,868.5

Stockholders’ equity:

Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued and outstanding as of August 2, 2026 and February 1, 2026

—

—

Class A common stock, $0.01 par value per share, 1,500,000,000 shares authorized, 224,993,295 and 238,647,144 shares issued and outstanding as of August 2, 2026 and February 1, 2026, respectively

2.2

2.4

Class B common stock, $0.01 par value per share, 395,000,000 shares authorized, 176,478,229 and 176,478,229 shares issued and outstanding as of August 2, 2026 and February 1, 2026, respectively

1.8

1.8

Additional paid-in capital

1,550.7

1,852.9

Accumulated deficit

(1,184.8

)

(1,360.1

)

Accumulated other comprehensive income

0.6

0.9

Total stockholders’ equity

370.5

497.9

Total liabilities and stockholders’ equity

$

3,740.6

$

3,366.4

CHEWY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(in millions, except per share data)

(Unaudited)

  13 Weeks Ended

26 Weeks Ended

August 2,
2026

August 3,
2025

August 2,
2026

August 3,
2025

Net sales

$

3,330.2

$

3,104.2

$

6,687.4

$

6,220.2

Cost of goods sold

2,319.0

2,162.0

4,664.8

4,354.2

Gross profit

1,011.2

942.2

2,022.6

1,866.0

Operating expenses:

Selling, general and administrative

704.4

671.9

1,381.2

1,325.0

Advertising and marketing

214.8

200.6

420.9

394.4

Total operating expenses

919.2

872.5

1,802.1

1,719.4

Income from operations

92.0

69.7

220.5

146.6

Interest and other income, net

19.9

4.3

22.7

5.3

Income before income tax provision

111.9

74.0

243.2

151.9

Income tax provision

31.4

12.0

67.9

27.5

Net income

$

80.5

$

62.0

$

175.3

$

124.4

Comprehensive income:

Net income

$

80.5

$

62.0

$

175.3

$

124.4

Foreign currency translation adjustments

(0.3

)

0.2

(0.3

)

0.6

Comprehensive income

$

80.2

$

62.2

$

175.0

$

125.0

Earnings per share attributable to common Class A and Class B stockholders:

Basic

$

0.20

$

0.15

$

0.43

$

0.30

Diluted

$

0.20

$

0.14

$

0.42

$

0.29

Weighted-average common shares used in computing earnings per share:

Basic

406.4

414.2

410.1

413.9

Diluted

410.1

428.4

414.6

426.8

CHEWY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

  26 Weeks Ended

August 2,
2026

August 3,
2025

Cash flows from operating activities

Net income

$

175.3

$

124.4

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

76.7

62.1

Share-based compensation expense

150.4

150.4

Non-cash lease expense

19.6

17.4

Unrealized foreign currency (gains) losses, net

—

(0.2

)

Other adjustments

6.8

5.8

Net change in operating assets and liabilities:

Accounts receivable

(8.2

)

(52.1

)

Inventories

(44.9

)

(37.5

)

Prepaid expenses and other current assets

(2.7

)

(32.2

)

Other non-current assets

(0.4

)

—

Trade accounts payable

(65.3

)

50.0

Accrued expenses and other current liabilities

(49.3

)

(49.8

)

Operating lease liabilities

(18.5

)

(16.9

)

Other long-term liabilities

6.4

(1.1

)

Net cash provided by operating activities

245.9

220.3

Cash flows from investing activities

Capital expenditures

(85.6

)

(65.7

)

Purchases of marketable securities

(21.4

)

—

Proceeds from maturities of marketable securities

39.2

—

Cash paid for acquisition of businesses, net of cash acquired

(552.8

)

—

Other investing activities

—

(5.2

)

Net cash (used in) investing activities

(620.6

)

(70.9

)

Cash flows from financing activities

Repurchases of common stock

(400.0

)

(152.6

)

Proceeds from, net of income taxes paid for, parent reorganization transaction

4.3

2.3

Repayment of borrowings and related financing costs

—

(0.8

)

Proceeds from debt

811.7

—

Principal repayments of debt

(220.0

)

—

Payments for tax withholdings related to vesting of share-based compensation awards

(68.7

)

—

Other

(1.4

)

(2.9

)

Net cash provided by (used in) financing activities

125.9

(154.0

)

Effect of exchange rate changes on cash and cash equivalents

(0.3

)

0.6

Net (decrease) in cash and cash equivalents

(249.1

)

(4.0

)

Cash and cash equivalents, as of beginning of period

860.1

595.8

Cash and cash equivalents, as of end of period

$

611.0

$

591.8

Non-GAAP Financial Measures

To supplement our GAAP results, we present certain non-GAAP financial measures that management uses to evaluate operating performance, assess liquidity, and inform capital allocation decisions. These measures include Adjusted EBITDA and Adjusted EBITDA margin, Adjusted net income and Adjusted earnings per share, and Free cash flow.

Adjusted EBITDA excludes depreciation and amortization, share-based compensation and related taxes, income tax provision (benefit), interest income (expense), transaction-related costs, net legal settlement proceeds, changes in the fair value of equity warrants, severance and exit costs, and other items not considered indicative of our core operations. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.

Adjusted net income and Adjusted earnings per share exclude certain non-cash and non-recurring items, including share-based compensation and related taxes, releases of valuation allowances associated with deferred tax assets, transaction-related costs, net legal settlement proceeds, changes in the fair value of equity warrants, and severance and exit costs. Beginning in the first quarter of 2026, Adjusted net income excludes transaction-related costs prospectively.

Free cash flow represents net cash provided by operating activities less capital expenditures.

We believe these measures provide additional insight into the underlying trends in our business and facilitate comparisons across reporting periods. Reconciliations to the most directly comparable GAAP measures are provided below.

These non-GAAP measures have limitations and should not be considered in isolation or as a substitute for GAAP results. For example, Adjusted EBITDA does not reflect capital expenditures, working capital requirements, interest income (expense), income taxes, or share-based compensation, which remains a recurring component of our compensation structure. In addition, other companies may calculate non-GAAP measures differently, which may limit their comparability. Accordingly, these measures should be considered together with our GAAP financial statements and related disclosures.

Key Financial and Operating Data

We measure our business using both financial and operating data and use the following metrics and measures to assess the near-term and long-term performance of our overall business, including identifying trends, formulating financial projections, making strategic decisions, assessing operational efficiencies, and monitoring our business.

13 Weeks Ended

26 Weeks Ended

(in millions, except net sales per active customer, per share data, and percentages)

August 2,
2026

August 3,
2025

%
Change

August 2,
2026

August 3,
2025

%
Change

Financial and Operating Data

Net sales

$

3,330.2

$

3,104.2

7.3

%

$

6,687.4

$

6,220.2

7.5

%

Net income (1)

$

80.5

$

62.0

29.8

%

$

175.3

$

124.4

40.9

%

Net margin

2.4

%

2.0

%

2.6

%

2.0

%

Adjusted EBITDA (2)

$

226.7

$

183.3

23.7

%

$

479.8

$

376.0

27.6

%

Adjusted EBITDA margin (2)

6.8

%

5.9

%

7.2

%

6.0

%

Adjusted net income (2)

$

148.8

$

141.1

5.5

%

$

328.7

$

290.0

13.3

%

Earnings per share, basic (1)

$

0.20

$

0.15

33.3

%

$

0.43

$

0.30

43.3

%

Earnings per share, diluted (1)

$

0.20

$

0.14

42.9

%

$

0.42

$

0.29

44.8

%

Adjusted earnings per share, basic (2)

$

0.37

$

0.34

8.8

%

$

0.80

$

0.70

14.3

%

Adjusted earnings per share, diluted (2)

$

0.36

$

0.33

9.1

%

$

0.79

$

0.68

16.2

%

Net cash provided by operating activities

$

137.4

$

133.9

2.6

%

$

245.9

$

220.3

11.6

%

Free cash flow (2)

$

89.5

$

105.9

(15.5

)%

$

160.3

$

154.6

3.7

%

Active customers (3) (4)

21.705

20.906

3.8

%

21.705

20.906

3.8

%

Net sales per active customer

$

602

$

591

1.9

%

$

602

$

591

1.9

%

Autoship customer sales

$

2,817.2

$

2,576.9

9.3

%

$

5,649.8

$

5,139.6

9.9

%

Autoship customer sales as a percentage of net sales

84.6

%

83.0

%

84.5

%

82.6

%

(1) Includes share-based compensation expense and related taxes of $85.9 million and $159.3 million for the thirteen and twenty-six weeks ended August 2, 2026, compared to $79.1 million and $157.1 million for the thirteen and twenty-six weeks ended August 3, 2025.

(2) Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic and diluted earnings per share, and free cash flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” above.

(3) Includes approximately 43 thousand active customers attributable to SmartPak for the thirteen and twenty-six weeks ended August 2, 2026.

(4) Excludes customer additions related to the Modern Animal acquisition.

We define net margin as net income divided by net sales and adjusted EBITDA margin as adjusted EBITDA divided by net sales.

Adjusted EBITDA and Adjusted EBITDA Margin

The following table presents a reconciliation of net income to adjusted EBITDA, as well as the calculation of net margin and adjusted EBITDA margin, for each of the periods indicated:

(in millions, except percentages)

13 Weeks Ended

26 Weeks Ended

Reconciliation of Net Income to Adjusted EBITDA

August 2,
2026

August 3,
2025

August 2,
2026

August 3,
2025

Net income

$

80.5

$

62.0

$

175.3

$

124.4

Add (deduct):

Depreciation and amortization

39.7

32.1

76.7

62.1

Share-based compensation expense and related taxes

85.9

79.1

159.3

157.1

Interest expense (income), net

4.7

(3.9

)

1.9

(7.1

)

Change in fair value of equity warrants

—

—

—

2.6

Income tax provision

31.4

12.0

67.9

27.5

Exit costs

—

—

1.9

—

Severance costs

—

—

—

5.9

Net legal settlement proceeds

(24.0

)

—

(24.0

)

—

Transaction related costs

6.4

0.6

16.2

0.7

Other

2.1

1.4

4.6

2.8

Adjusted EBITDA

$

226.7

$

183.3

$

479.8

$

376.0

Net sales

$

3,330.2

$

3,104.2

$

6,687.4

$

6,220.2

Net margin

2.4

%

2.0

%

2.6

%

2.0

%

Adjusted EBITDA margin

6.8

%

5.9

%

7.2

%

6.0

%

Adjusted Net Income and Adjusted Basic and Diluted Earnings per Share

The following table presents a reconciliation of net income to adjusted net income, as well as the calculation of adjusted basic and diluted earnings per share, for each of the periods indicated:

(in millions, except per share data)

13 Weeks Ended

26 Weeks Ended

Reconciliation of Net Income to Adjusted Net Income

August 2,
2026

August 3,
2025

August 2,
2026

August 3,
2025

Net income

$

80.5

$

62.0

$

175.3

$

124.4

Add:

Share-based compensation expense and related taxes

85.9

79.1

159.3

157.1

Change in fair value of equity warrants

—

—

—

2.6

Exit costs

—

—

1.9

—

Severance costs

—

—

—

5.9

Net legal settlement proceeds

(24.0

)

—

(24.0

)

—

Transaction related costs

6.4

—

16.2

—

Adjusted net income

$

148.8

$

141.1

$

328.7

$

290.0

Weighted-average common shares used in computing earnings per share and adjusted earnings per share:

Basic

406.4

414.2

410.1

413.9

Effect of dilutive share-based awards

3.7

14.2

4.5

12.9

Diluted

410.1

428.4

414.6

426.8

Earnings per share attributable to common Class A and Class B stockholders

Basic

$

0.20

$

0.15

$

0.43

$

0.30

Diluted

$

0.20

$

0.14

$

0.42

$

0.29

Adjusted basic

$

0.37

$

0.34

$

0.80

$

0.70

Adjusted diluted

$

0.36

$

0.33

$

0.79

$

0.68

Free Cash Flow

The following table presents a reconciliation of net cash provided by operating activities to free cash flow for each of the periods indicated:

(in millions)

13 Weeks Ended

26 Weeks Ended

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

August 2,
2026

August 3,
2025

August 2,
2026

August 3,
2025

Net cash provided by operating activities

$

137.4

$

133.9

$

245.9

$

220.3

Deduct:

Capital expenditures

(47.9

)

(28.0

)

(85.6

)

(65.7

)

Free Cash Flow

$

89.5

$

105.9

$

160.3

$

154.6

Free cash flow may vary period to period based on the timing and level of capital expenditures, including investments in fulfillment capacity, pharmacy facilities, veterinary clinics, technology infrastructure, and other operational initiatives. Free cash flow may also be affected by changes in working capital, including fluctuations in inventory levels, vendor payment terms, and other components of the cash conversion cycle.

Chewy stock advances after the company raises net sales guidance for the fiscal year.

Key Takeaways Chewy's Q2 revenues are seen rising 6.8% to $3.32B, with EPS up 9.1% to 36 cents.Autoship, customer reactivation, app engagement and healthcare expansion likely supported Q2 sales.Cautious spending, tougher margin comparisons and fuel surcharges may have pressured profitability. Chewy, Inc. (CHWY - Free Report) is scheduled to report second-quarter fiscal 2026 earnings results on Sept. 9, before the opening bell. The key question for investors is whether the online pet retailer can sustain its solid sales momentum and expanding profitability while navigating a dynamic consumer environment and ongoing investments in customer growth, healthcare and other strategic initiatives.

The Zacks Consensus Estimate for second-quarter revenues stands at $3,322 million, indicating a 6.8% increase from the prior-year reported figure. On the earnings front, the consensus estimate has remained stable at 36 cents a share over the past 30 days, implying a 9.1% rise from the year-ago period.

Chewy has an average trailing four-quarter earnings surprise of 0.8%. In the last reported quarter, this Plantation, FL-based company’s bottom line met the Zacks Consensus Estimate.

Image Source: Zacks Investment Research

What the Zacks Model Indicates for CHWY’s Q2 EarningsAs investors prepare for Chewy’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Chewy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chewy has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Likely to Have Shaped Chewy’s Q2 OutcomeChewy’s second-quarter performance is likely to have benefited from the continued strength of its recurring-revenue model, particularly the Autoship program. Management indicated that Autoship remained a key source of customer engagement and repeat purchasing, helping support revenue visibility even as the broader consumer environment remains cautious. Healthy reactivation trends, lower churn and improved customer relationship management initiatives also appear to have supported the active-customer base. Increased engagement through Chewy’s mobile app and continued market share gains are likely to have provided additional support to sales during the quarter.

The company’s expanding health and wellness ecosystem is also likely to have remained an important growth driver. Management highlighted increasing health and wellness penetration and broader cross-category engagement as factors supporting customer spending. Chewy Vet Care, in particular, has been positioned as both a customer-acquisition and retention engine, with clinic customers showing deeper engagement with the broader Chewy platform. The continued expansion of veterinary services, together with Chewy’s pharmacy and health offerings, may have helped the company capture a larger share of pet-parent spending and strengthen customer loyalty.

We note that sponsored advertising remained an important contributor to margin improvement, while favorable category mix, fulfillment productivity and disciplined operating expenses continued to support operating leverage. The company has also been embedding automation and artificial intelligence across customer service, pharmacy, fulfillment and marketing workflows, with the aim of lowering costs and better serving customers.

However, the second quarter is likely to have been affected by a more cautious consumer backdrop. Chewy entered the period seeing pressure on premiumization and discretionary product attachment. Management also expected a tougher gross-margin comparison because of nonrecurring pricing benefits recorded in the prior-year period, while elevated carrier fuel surcharges are expected to have weighed on profitability.

Chewy Stock Price PerformanceChewy, which competes with Central Garden & Pet Company (CENT - Free Report) and Petco Health and Wellness Company, Inc. (WOOF - Free Report) , has seen its shares jump 15.9% over the past three months compared with the industry’s 6.1% rise. Shares of Central Garden & Pet Company have gained 0.6%, while Petco Health and Wellness Company has fallen 0.8% over the said period.
 

Image Source: Zacks Investment Research

How Does Chewy’s Valuation Stack Up?Chewy trades at a discount to the broader industry. The stock currently carries a forward 12-month price-to-sales (P/S) multiple of 0.69, well below the industry average of 1.91. It also trades below its 12-month median P/S multiple of 0.79.

Chewy trades at a discount to Central Garden & Pet Company, which carries a forward 12-month P/S multiple of 0.90, but at a premium to Petco Health and Wellness Company, which trades at a multiple of 0.14.

Image Source: Zacks Investment Research

Final Words on ChewyChewy enters its second-quarter earnings release with encouraging business momentum, supported by Autoship strength, improving customer engagement, healthcare expansion, advertising growth and ongoing operating efficiencies. However, cautious consumer spending, softer discretionary demand, tougher margin comparisons and higher delivery-related costs could temper near-term performance. The earnings setup does not provide a favorable signal for a potential beat, warranting added caution despite the stock’s relatively attractive valuation. 

Chewy, Inc. (NYSE:CHWY) will release its second earnings report before the opening bell on Wednesday, Sept. 9.

Analysts expect the Plantation, Florida-based company to report quarterly earnings of 36 cents per share, up from 33 cents per share in the year-ago period. The consensus estimate for CHWY’s quarterly revenue is $3.32 billion. It reported $3.1 billion last year, according to Benzinga Pro.

On June 10, Chewy reported better-than-expected first-quarter results, but the online pet retailer lowered its fiscal 2026 sales outlook.

Chewy shares fell 1.3% to close at $23.66 on Friday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

RBC Capital analyst Steven Shemesh maintained an Outperform rating with a price target of $34 on Aug. 26, 2026. This analyst has an accuracy rate of 59%. Rosenblatt analyst Scott Devitt initiated coverage on the stock with a Neutral rating and a price target of $25 on Aug. 20, 2026. This analyst has an accuracy rate of 80%. UBS analyst Michael Lasser maintained a Neutral rating and cut the price target from $32 to $24 on June 11, 2026. This analyst has an accuracy rate of 78%. JP Morgan analyst Doug Anmuth maintained an Overweight rating and slashed the price target from $35 to $29 on June 11, 2026. This analyst has an accuracy rate of 84%. Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $45 to $28 on June 11, 2026. This analyst has an accuracy rate of 72%. Trending

Considering buying CHWY stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

The upcoming report from Chewy (CHWY - Free Report) is expected to reveal quarterly earnings of $0.36 per share, indicating an increase of 9.1% compared to the year-ago period. Analysts forecast revenues of $3.32 billion, representing an increase of 6.8% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Chewy metrics that are commonly tracked and projected by analysts on Wall Street.

Based on the collective assessment of analysts, 'Net Sales- Consumables' should arrive at $2.25 billion. The estimate indicates a change of +4.9% from the prior-year quarter.

The average prediction of analysts places 'Net Sales- Hardgoods' at $384.21 million. The estimate points to a change of +11% from the year-ago quarter.

The consensus estimate for 'Net Sales- Other' stands at $399.29 million. The estimate indicates a change of -34.4% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Active customers' of 21,662 . The estimate is in contrast to the year-ago figure of 20,906 .

The combined assessment of analysts suggests that 'Net sales per active customer' will likely reach $603.42 . The estimate compares to the year-ago value of $591.00 .

View all Key Company Metrics for Chewy here>>>

Over the past month, shares of Chewy have returned +0.6% versus the Zacks S&P 500 composite's +2.5% change. Currently, CHWY carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The online pet retailer is growing effectively.

*Stock prices used were the afternoon prices of Aug. 29, 2026. The video was published on Aug. 31, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

-

PLANTATION, Fla.--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, announced today that Sumit Singh, Chief Executive Officer, will participate in a fireside chat at the Goldman Sachs Global Consumer and Retail Conference 2026 on September 14, 2026 at 2:50 PM ET.

A live audio webcast can be accessed on the company’s investor relations website at https://investor.chewy.com and a replay will be accessible for 90 days following the event.

About Chewy

Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our websites and mobile applications allow our pet parents to manage their pets’ health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with approximately 4,000 of the best and most trusted brands in the pet industry, and we create and offer our own private brands. Through our websites and mobile applications, we offer our customers approximately 190,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers.

More News From Chewy

Back to Newsroom

Buying growth stocks after a sell-off can be a smart path to a double, provided the business keeps its edge. Chewy (CHWY +2.02%) and Celsius (CELH -0.03%) fit that setup today.

Both of these consumer stocks trade well below their highs, carry reasonable forward earnings multiples, and still have clear growth runways. Here's why they look like potential double-baggers over the next five years.

Image source: Getty Images.

1. Chewy Pet spending remains a large, resilient market. The industry reached $158 billion in 2025 and is expected to climb to $165 billion in 2026, according to the American Pet Association. Yet Chewy is trading 46% below its 52-week high, and the stock trades at a modest 16x forward price-to-earnings (P/E) multiple.

Chewy is still growing and taking share. In the first quarter, revenue rose 7.7% year over year to $3.36 billion. This is faster than the 4.4% increase expected in pet spending this year.

One of the most attractive qualities of Chewy's business is customer loyalty. Once customers start shopping at Chewy, they tend to stay. This is most evident in its Autoship sales, which grew more than 10% year over year last quarter and represented 84% of total sales.

Premium Feature

Moneyball Superscore

72/100

Today's Change

(

2.02

%) $

0.46

Current Price

$

23.26

Customer trends are also moving in the right direction. Chewy added nearly 170,000 net new customers in the quarter, reaching 21.5 million active customers, while average net sales per active customer increased to $597.

Profitability is improving, too. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin hit a record 7.5%, up more than a point from a year ago. Chewy has multiple ways to keep expanding margins, including sponsored ads, warehouse automation, and a bigger mix of higher-margin health offerings. However, some of these benefits will take time to show up as the company continues investing in vet care in the near term.

Share gains and rising margins suggest Chewy's moat is widening, making 16x forward earnings look inexpensive. If the market eventually values it closer to the broader market multiple -- and earnings continue to grow -- the stock could reasonably double over five years.

2. Celsius Energy drinks have been one of the fastest-growing categories in beverages, and Celsius has become a major player. Even with its brands representing roughly 20% of U.S. energy drink sales, the stock sits 46% below its 52-week high.

Premium Feature

Moneyball Superscore

68/100

Today's Change

(

-0.03

%) $

-0.01

Current Price

$

32.98

A key advantage is distribution. Celsius' partnership with PepsiCo has helped it win shelf space and expand the core Celsius brand. At the same time, the company is building a more diversified portfolio with names like Alani Nu and Rockstar Energy.

In the second quarter, Celsius reported $818 million in revenue, up 11% year over year. But retail sales were up 31% across tracked U.S. channels, which better captures consumer demand. The gap largely comes down to the timing of shipments to bottlers and other customers, which can make reported revenue growth look choppier than what's happening at the shelf.

Portfolio adjustments are also pressuring near-term results. Management is reshaping Celsius's product mix and cutting weaker-performing units amid softer consumer spending. That can weigh on growth and margins now, but it doesn't necessarily change what the business can earn when conditions normalize and the mix improves.

International growth remains a major opportunity. Overseas sales rose 10% year over year last quarter but still represent a small portion of total revenue. Management's longer-term goal is for international revenue to reach 15% of total revenue over the next five years.

Celsius is also seeing productivity gains in distribution that could support better margins over time. If it can sustain double-digit revenue growth and expand earnings faster than sales, a five-year double is plausible. At 24x forward P/E, the stock looks reasonably priced for a top-tier brand in a growing category.

In the latest close session, Chewy (CHWY - Free Report) was up +2% at $24.50. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.77%.

The online pet store's shares have seen an increase of 15.15% over the last month, surpassing the Retail-Wholesale sector's gain of 1.67% and the S&P 500's gain of 2.31%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on September 9, 2026. It is anticipated that the company will report an EPS of $0.36, marking a 9.09% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.32 billion, reflecting a 6.83% rise from the equivalent quarter last year.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $13.49 billion. These results would represent year-over-year changes of +20.47% and +7.06%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% decrease. Chewy currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 15.74. This expresses a discount compared to the average Forward P/E of 17.4 of its industry.

Also, we should mention that CHWY has a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.26 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

PLANTATION, Fla.--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, announced today that it will report fiscal second quarter 2026 financial results before the market opens on Wednesday, September 9, 2026. Management will host a conference call and webcast to discuss the company's financial results at 8:00 am ET. To access the conference call by phone, please visit this link for registration (Phone Registration Link) to be provid.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Chewy (CHWY - Free Report) Chewy, Inc. is a pure-play e-commerce company focused on pet products and services spanning food, treats, supplies, medications and broader pet health. The company launched operations in 2011 and converted to a Delaware corporation in 2016. It partners with approximately 4,000 brands, and offers about 190,000 products and service offerings. Chewy operates the number one pet pharmacy in America and has built out a technology-enabled ecosystem that includes Connect with a Vet, medication compounding, CarePlus offerings, PracticeHub and Chewy Vet Care clinics. Chewy serves customers across the United States and expanded to Canada in 2023.

CHWY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. CHWY has a Growth Style Score of A, forecasting year-over-year earnings growth of 20.5% for the current fiscal year.

For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $1.53 per share. CHWY boasts an average earnings surprise of +0.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CHWY should be on investors' short list.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Chewy (CHWY - Free Report) .

Chewy currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.

Of the 27 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 66.7% and 7.4% of all recommendations.

Brokerage Recommendation Trends for CHWY

Check price target & stock forecast for Chewy here>>>

The ABR suggests buying Chewy, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is CHWY Worth Investing In?In terms of earnings estimate revisions for Chewy, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.53.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Chewy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Chewy.

In the latest trading session, Chewy (CHWY - Free Report) closed at $22.59, marking a -3.99% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.32%.

Coming into today, shares of the online pet store had gained 12.69% in the past month. In that same time, the Retail-Wholesale sector gained 7.55%, while the S&P 500 gained 3.42%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. In that report, analysts expect Chewy to post earnings of $0.36 per share. This would mark year-over-year growth of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $3.32 billion, up 6.83% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.53 per share and revenue of $13.49 billion, indicating changes of +20.47% and +7.2%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Chewy presently features a Zacks Rank of #4 (Sell).

Digging into valuation, Chewy currently has a Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 18.55, which means Chewy is trading at a discount to the group.

It's also important to note that CHWY currently trades at a PEG ratio of 0.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.18.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 34% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Axon Enterprise maintains a dominant position in the public safety technology market through its hardware and cloud software ecosystem. Chewy leverages a high percentage of recurring revenue through its Autoship subscription model to maintain pet-owner loyalty.

Sumit Singh, Chief Executive Officer of Chewy, Inc. (CHWY -1.71%), reported disposing of 81,841 shares of Class A Common Stock between July 31, 2026, and Aug. 3, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$1.9 millionShares sold81,841Post-transaction shares (directly held)~887,000Post-transaction shares (indirectly held)5,526Post-transaction value$20.49 millionTransaction value based on SEC Form 4 weighted average sale price ($22.93); post-transaction value based on Aug. 03, 2026, market close ($22.97).

Key questionsWhat was the specific composition of this disposition?
The transaction comprised 49,477 shares sold on the open market under 10b5-1 trading plans and 32,364 shares withheld for tax obligations related to the net settlement of restricted stock units.How much total equity does the executive maintain following these sales?
Sumit Singh retains direct ownership of ~887,000 shares and indirect ownership of 5,526 shares held by his spouse, representing a collective beneficial interest valued at $20.49 million as of the Aug. 3, 2026, market close.What is the recent performance context for the stock?
At the time of the transaction, Chewy’s shares had a one-year return of -36% as of the Aug. 3, 2026 market close.Are there other equity incentives outstanding?
The executive also holds derivative securities, including various tranches of performance-based and time-based restricted stock units that are scheduled to vest through 2028, contingent upon continued employment.Company OverviewMetricValueShare Price (as of market close 2026-08-03)$22.97Market Capitalization$10.0 billionRevenue (TTM)$12.8 billionNet Income (TTM)$255.2 millionCompany SnapshotChewy operates as a comprehensive online pet specialty retailer, offering a broad assortment of products, including pet food, treats, supplies, and accessories across multiple pet categories, including canines, felines, aquatic pets, birds, small mammals, horses, and reptiles.The company generates revenue through direct-to-consumer e-commerce transactions via its primary website, chewy.com, and mobile applications, leveraging a subscription-based model and repeat purchase behavior to drive customer lifetime value.Chewy serves pet owners across the United States who seek convenient online access to pet care products, targeting both price-conscious consumers and premium pet owners seeking specialized, niche offerings.Chewy, Inc. is the leading pure-play online pet specialty retailer in the United States, commanding a substantial market position with $12.8 billion in TTM revenue and a market capitalization of $10.0 billion. The company leverages its digital-first platform and extensive product catalog to capture recurring consumer spending on essential pet care items, generating net income of $255.2 million TTM. Chewy's competitive advantages include its proprietary logistics network, customer subscription programs, and brand recognition within the pet care category, positioning it as a dominant player in the rapidly growing online pet retail segment.

What this transaction means for investorsWhile a CEO selling their own stock is certainly eye-catching, I don’t believe it is particularly noteworthy for Chewy or its investors. Singh’s sale was a pre-arranged transaction and didn’t really try to time the market by any means. Also, Singh still holds 887,000 shares, so they have plenty of skin in the game to benefit if the stock rises in line with their guidance.

That said, the timing of the sale probably isn’t ideal for Singh, with the stock down 29% in 2026 and 74% over the last five years. However, I’d argue that this sell-off is more likely tied to its once-excessively lofty valuation returning to normal levels, rather than to anything being wrong with Chewy’s actual operations. In fact, Chewy looks stronger than ever, in my opinion, despite the likelihood that its high-growth days are in the rearview mirror.

Between advertising, private-label products, streamlining logistics, and the build-out of its Chewy Vet Care clinics, Chewy should continue to see its margins gradually rise. Aiming for 30 CVC clinics by the end of the year, these vet shops should not only bring higher margins but also bring new, long-term customers into the fold. Trading at 17 times FCF — 33 if you include stock-based compensation (SBC) — Chewy looks like a reasonably priced compounder in the making, provided it can rein in its SBC over time.

In the latest close session, Chewy (CHWY - Free Report) was up +1.64% at $22.97. The stock exceeded the S&P 500, which registered a gain of 1.48% for the day. On the other hand, the Dow registered a gain of 1.32%, and the technology-centric Nasdaq increased by 2.13%.

Shares of the online pet store witnessed a gain of 8.39% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 7.19%, and the S&P 500's gain of 0.19%.

Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earnings disclosure. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.32 billion, indicating a 6.83% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $13.49 billion, which would represent changes of +20.47% and +7.06%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Chewy possesses a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 14.79. This represents a discount compared to its industry average Forward P/E of 18.1.

We can also see that CHWY currently has a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

In the latest trading session, Chewy (CHWY - Free Report) closed at $22.82, marking a -2.06% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.66%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 2.78%.

Coming into today, shares of the online pet store had gained 13.11% in the past month. In that same time, the Retail-Wholesale sector gained 0.61%, while the S&P 500 lost 1.49%.

The upcoming earnings release of Chewy will be of great interest to investors. The company is predicted to post an EPS of $0.36, indicating a 9.09% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.32 billion, indicating a 6.83% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and a revenue of $13.49 billion, representing changes of +20.47% and +7.06%, respectively, from the prior year.

Any recent changes to analyst estimates for Chewy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Chewy possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Chewy has a Forward P/E ratio of 15.25 right now. This signifies a discount in comparison to the average Forward P/E of 16.71 for its industry.

It's also important to note that CHWY currently trades at a PEG ratio of 0.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.27 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

On July 27, 2026, Chewy Inc (CHWY) shares rose 4.5% today, trading at $21.80. The stock has experienced a volatile year, with a 52-week range of $17.40 to $43.5

Chewy (CHWY - Free Report) closed the most recent trading day at $20.46, moving -4.93% from the previous trading session. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.15%.

Shares of the online pet store have appreciated by 13.2% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.27%, and the S&P 500's gain of 0.42%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.32 billion, indicating a 6.83% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.49 billion, demonstrating changes of +20.47% and +7.06%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.78% downward. Chewy currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Chewy is holding a Forward P/E ratio of 14.09. This expresses a discount compared to the average Forward P/E of 16.93 of its industry.

We can additionally observe that CHWY currently boasts a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHWY's industry had an average PEG ratio of 1.11 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.

Posted by Defense World Staff on Jul 21st, 2026

Bank of New York Mellon Corp reduced its stake in Chewy (NYSE:CHWY – Free Report) by 1.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 4,252,907 shares of the company’s stock after selling 83,722 shares during the quarter. Bank of New York Mellon Corp owned 1.02% of Chewy worth $114,828,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the stock. Wellington Management Group LLP increased its position in Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock worth $712,841,000 after purchasing an additional 13,171,325 shares during the period. Viking Global Investors LP lifted its holdings in Chewy by 146.9% in the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock valued at $447,386,000 after acquiring an additional 8,052,955 shares during the period. AQR Capital Management LLC boosted its position in shares of Chewy by 120.2% during the 3rd quarter. AQR Capital Management LLC now owns 10,196,146 shares of the company’s stock worth $407,948,000 after purchasing an additional 5,564,803 shares in the last quarter. Norges Bank purchased a new stake in shares of Chewy during the 4th quarter worth $154,647,000. Finally, State Street Corp grew its stake in shares of Chewy by 75.5% during the 2nd quarter. State Street Corp now owns 6,170,197 shares of the company’s stock worth $262,974,000 after purchasing an additional 2,654,496 shares during the period. Institutional investors and hedge funds own 93.09% of the company’s stock.

Chewy Stock Up 5.0% CHWY stock opened at $21.98 on Tuesday. The stock has a market capitalization of $9.00 billion, a price-to-earnings ratio of 36.64, a price-to-earnings-growth ratio of 1.06 and a beta of 1.45. Chewy has a 52-week low of $17.40 and a 52-week high of $43.50. The stock’s fifty day simple moving average is $20.34 and its 200-day simple moving average is $24.94.

Insiders Place Their Bets In other news, CEO Sumit Singh sold 83,306 shares of Chewy stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $2,132,633.60. Following the transaction, the chief executive officer directly owned 874,061 shares of the company’s stock, valued at $22,375,961.60. The trade was a 8.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Da-Wai Hu sold 4,203 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $19.49, for a total value of $81,916.47. Following the sale, the general counsel owned 4,103 shares of the company’s stock, valued at $79,967.47. The trade was a 50.60% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 91,729 shares of company stock worth $2,322,582. 0.34% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades A number of research analysts have issued reports on CHWY shares. Zacks Research cut shares of Chewy from a “hold” rating to a “strong sell” rating in a report on Thursday, June 25th. TD Cowen restated a “buy” rating on shares of Chewy in a report on Tuesday, June 23rd. Mizuho dropped their price objective on Chewy from $50.00 to $40.00 and set an “outperform” rating for the company in a research note on Wednesday, June 3rd. The Goldman Sachs Group decreased their target price on Chewy from $46.00 to $34.00 and set a “buy” rating on the stock in a research report on Friday, June 12th. Finally, JPMorgan Chase & Co. lowered their target price on Chewy from $35.00 to $29.00 and set an “overweight” rating on the stock in a report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $32.05.

View Our Latest Stock Analysis on CHWY

Chewy Profile (Free Report)

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.

Further Reading Five stocks we like better than Chewy The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding CHWY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Chewy (NYSE:CHWY – Free Report).

Receive News & Ratings for Chewy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chewy and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINENasdaq (NDAQ) Expected to Release Quarterly Earnings on Thursday

NEXT HEADLINE »Baader Bank Aktiengesellschaft Trims Position in ResMed Inc. $RMD

In the latest trading session, Chewy (CHWY - Free Report) closed at $21.53, marking a +1.51% move from the previous day. This move outpaced the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 1.47%.

The stock of online pet store has risen by 19.36% in the past month, leading the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 9.09% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.32 billion, indicating a 6.83% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.53 per share and revenue of $13.49 billion, indicating changes of +20.47% and +7.06%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Currently, Chewy is carrying a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 13.88. For comparison, its industry has an average Forward P/E of 17.09, which means Chewy is trading at a discount to the group.

It is also worth noting that CHWY currently has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.09.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 31% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Chewy (CHWY - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Chewy currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 27 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.

Of the 27 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 66.7% and 7.4% of all recommendations.

Brokerage Recommendation Trends for CHWY

Check price target & stock forecast for Chewy here>>>

While the ABR calls for buying Chewy, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is CHWY a Good Investment?Looking at the earnings estimate revisions for Chewy, the Zacks Consensus Estimate for the current year has declined 0.3% over the past month to $1.53.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Chewy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Chewy with a grain of salt.

Chewy remains a Strong Buy, with valuation implying a high margin of safety even under conservative assumptions and challenging macro conditions. Q1 delivered 7.7% YoY net sales growth, $71M FCF, record profitability, and nearly 200,000 net customer additions despite consumer headwinds. CHWY's guidance reflects macro pressure: net sales are expected at $13.40–$13.55B and Adj. EBITDA margin at 6.6–6.8%, but long-term potential remains intact.