Analysts rate Chewy Inc. (CHWY:NYE) with a Buy rating and a $45 target

STA Research
by: STA Research
Chewy Inc.

Based on the Chewy stock forecast from 16 analysts, the average analyst Chewy stock price target is USD 45.41 over the next 12 months. Chewy Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of CHWY stock forecast is Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, Chewy stock price was USD 38.01Chewy stock price has changed by -3.14% over the past week, -0.80% over the past month and -57.81% over the last year.

About Chewy Inc. (CHWY:NYE):

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its www.chewy.com retail Website, as well as its mobile applications. It offers approximately 100,000 products from 3,000 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

CHWY stock forecast has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

Superior Revenue Growth:

CHWY stock price has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

CHWY stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

CHWY stock price is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

CHWY stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow:

CHWY stock forecast shows that the company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Chewy stock price has shown below median earnings growth in the previous 5 years compared to its sector

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