CHWY - Chewy: Time To Dip Your Toes In As Risk-Reward Is Attractive
2024-02-10 06:33:18 ET
Summary
- Chewy has underperformed in 2023, but the worst is priced in, with potential for significant upside over 5 years.
- Growing wallet share and higher sales from the Autoship subscription service will continue to drive revenue growth and engagement.
- Chewy operates in a large and growing market, with opportunities for deeper market penetration and innovation in the Chewy Health category.
Introduction & investment thesis
Chewy (CHWY) is a pure-play pet e-commerce business that has severely underperformed the indices in 2023. While the company has seen a slowdown in revenue growth and active customers, which has led to investor pessimism, I believe that the worst is priced in at the moment, with room for significant upside over a 5-year investment horizon....
Chewy: Time To Dip Your Toes In As Risk-Reward Is Attractive