CHWY - 1 Mid-Cap Growth Stock to Buy Hand Over Fist Before It Soars 107% According to a Select Wall Street Analyst
2024-03-09 06:20:00 ET
Every so often, market expectations for a company will get way ahead of results the company can produce at a sustainable pace. And when sales growth inevitably slows down, investors are quick to sour on the stock. But that can leave those willing to take a long-term mindset with an opportunity to buy a great company going through short-term challenges.
That might be the case with Chewy (NYSE: CHWY) . The company saw soaring sales amid the start of the pandemic when it benefited from the combination of soaring pet adoptions and a push toward online retail. But sales growth has come down considerably since then. Management expects sales growth of just 3% year over year for its fiscal 2023 fourth quarter.
But the long-term outlook for Chewy remains strong thanks to its Autoship business, expansion into higher margin products and services, and the growing penetration of e-commerce in the industry. That's why Morningstar analyst Sean Dunlop thinks the stock is worth $36 today, more than double the current share price as of this writing.
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1 Mid-Cap Growth Stock to Buy Hand Over Fist Before It Soars 107%, According to a Select Wall Street Analyst