Chewy Inc ( CHWY ) shares are trading lower by 9.2% to $31.30 over the trailing five sessions. The stock has been volatile after the company last week reported fourth-quarter earnings, surpassing analyst expectations.
What To Know: Chewy posted an adjusted EPS of 28 cents, a 55.6% increase from the prior year, exceeding the consensus estimate of 5 cents.
Revenue grew by 14.9% year-over-year to $3.25 billion, surpassing both Wall Street expectations and the company's own guidance.
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CEO Sumit Singh credited Chewy's performance to active customer growth and strong loyalty in its Autoship subscription service. Looking ahead to fiscal year 2025, Chewy forecasts revenue between $12.30 billion and $12.45 billion, with a projected growth rate of 6% to 7%.
The company also expects an adjusted EBITDA margin of 5.4%-5.7%. For the first quarter of 2025, Chewy anticipates revenue between $3.06 billion and $3.09 billion, exceeding the consensus estimate of $3.05 billion.
What Else: Several analysts responded positively to Chewy's results. JPMorgan, Wedbush, RBC Capital Markets and Morgan Stanley reiterated optimistic ratings, citing active customer growth, margin expansion, and improved marketing efficiency.
While Needham maintained a Hold rating, most analysts highlighted Chewy's ability to capture market share in an expanding online pet retail sector.
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Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Chewy’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from Benzinga Pro, CHWY has a 52-week high of $40.09 and a 52-week low of $14.68.