A Glimpse Into The Expert Outlook On Chewy Through 4 Analysts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Chewy CHWY in the last three months.

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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $42.0, a high estimate of $47.00, and a low estimate of $39.00. This current average reflects an increase of 24.44% from the previous average price target of $33.75.

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into how financial experts perceive Chewy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Chewy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Chewy compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Chewy's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Chewy's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Chewy analyst ratings.

Delving into Chewy's Background

Chewy is the largest e-commerce petcare retailer in the US, generating $11.2 billion in fiscal 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's Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Chewy showcased positive performance, achieving a revenue growth rate of 4.8% as of 31 October, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Chewy's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.14%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.11%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Chewy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 2.29, Chewy faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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