Name of opportunity: 👀
Chewy, Inc
Q2 report looking good fur real: 🐶
Last week, the pet care e-commerce website Chewy shared its Q2 report. Encouragingly for investors, Chewy’s gross margin reached 29.5%, an improvement of 120 basis points. Revenue also rose by 2.6%, reaching $2.86 billion. The company also cut its expenses and improved its earnings per share. In response, the stock initially rose in value by 11% although it has fallen slightly since then.
Roaring Kitty, also known asKeith Gill - the meme stocks investor whose name is bound up in many people’s minds with Gamestop - shared in June that he holds shares in Chewy.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict a 12.67% decrease in the next 12 months, reaching an average target price of $24.93.
However, despite the predicted drop in value, Chewy is still currently estimated as a ‘Buy’ by most analysts. Even ifChewy does fall by 12.67%, the stock would still be worth more than it was a month ago, when it was priced at $22.16. It could be the case that the stock has rallied so much after its strong earnings report that it is now overvalued. It has already fallen a little since last Wednesday, when the report was released.
Analysts at The Motley Fool have highlighted the fact that Chewy’s customer growth has slowed - while each customer is on average buying more, there are fewer new customers than investors and analysts would like to see. However, Chewy has said that website traffic is increasing, and management has indicated hopefulness that the company will see more growth soon.
Invest meow?: 🐈
Chewy, Inc. is a pure play e-commerce company geared toward pet products for dogs, cats, fish, birds, small pets, horses, and reptiles. It was founded in 2011 and went public on the stock market in 2019. The company has recently (in the last couple of years) expanded into the pet healthcare and insurance sector.
Which neme?: 🔍
This one's not in any of our nemes right now, so search for ‘Chewy’!
Download Nemo to check out Chewy
