Chewy (NYSE: CHWY) is drawing attention as its stock has plummeted nearly 47% from its 52-week high, now trading at a forward P/E of 17, significantly below the S&P 500 average of over 20. Despite recent bearish sentiment, the company reported solid fiscal 2025 results, with net sales increasing by over 6% to $12.6 billion and operating income more than doubling to $254.3 million. Chewy’s guidance for the current fiscal year projects revenue growth of 8% or more, driven by an expanding customer base rather than price hikes.
This performance suggests that Chewy’s business model remains resilient, even amid broader market declines. The stock’s recent performance, down 21% in 2026 against the S&P 500’s 7% drop, raises questions about its valuation and potential recovery.
For market professionals, Chewy presents a compelling opportunity for long-term investment, especially given its attractive valuation and positive growth outlook amidst a challenging market environment.
Source: fool.com