CHWY - Chewy: The Ship Is Steadying

2024-03-21 23:31:43 ET

Summary

• Chewy's stock price has fallen over 50% due to slower growth, but strong Q4 results and a focus on bottom-line leverage suggest a near-term rebound.
• The Company's modest valuation and expected adjusted EBITDA growth of ~21 % in FY24 make it an attractive investment opportunity.
• CHWY's long-term drivers include its strong brand, expansion into Canada and other countries, margin expansion, constant product innovation, and opportunities in pet telehealth and insurance.

With the stock market hovering at all-time highs, to invest properly in the tech space we have to look more at more contrarian plays that have not been overly favored over the past year....

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