Analyst Expectations For Chewy's Future

In the latest quarter, 15 analysts provided ratings for Chewy CHWY, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Chewy, presenting an average target of $22.7, a high estimate of $32.00, and a low estimate of $16.00. A decline of 10.63% from the prior average price target is evident in the current average.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Chewy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chewy. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chewy compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Chewy's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Chewy's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Chewy analyst ratings.

About Chewy

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.

Chewy: Financial Performance Dissected

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

Positive Revenue Trend: Examining Chewy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.37% as of 31 January, 2024, showcasing a substantial increase in 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 1.2%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Chewy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.59%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.12%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Chewy's debt-to-equity ratio is below the industry average. With a ratio of 1.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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