A Glimpse Into The Expert Outlook On Chewy Through 13 Analysts

Throughout the last three months, 13 analysts have evaluated Chewy CHWY, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $23.5, a high estimate of $32.00, and a low estimate of $16.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 12.96%.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Chewy among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chewy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chewy compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Chewy's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Chewy's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Chewy analyst ratings.

Get to Know Chewy Better

Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

Key Indicators: Chewy's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Chewy displayed positive results in 3 months. As of 31 January, 2024, the company achieved a solid revenue growth rate of approximately 4.37%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Chewy's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.2%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Chewy's ROE stands out, surpassing industry averages. With an impressive ROE of 7.59%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Chewy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.12%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.03, Chewy adopts a prudent financial strategy, indicating a balanced approach to debt management.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.