Down 50% and Still Dominant: The 1 Growth Stock Worth Buying Right Now

2026-06-03 06:45:00 ET

It's been a tough year for Chewy (NYSE: CHWY) stock. It has been cut in half over the past year, and it's lost a third of its value in 2026 alone. This is despite the company continuing to deliver strong results and having a bright outlook.

Chewy arguably has one of the most attractive businesses in the retail space. The pet e-commerce player primarily sells pet food and other necessities that customers get automatically shipped right to their doors without even having to place a new order. About 84% of its sales come from customers using its autoship program, and about 85% of its sales are for food and pet medications. That gives it a very predictable, recession-resistant business model.

However, the stock fell in May after CEO Sumit Singh said at a conference that the company was not immune to macro headwinds. The market ignored the part where he also said this didn't change Chewy's ability to take share and grow earnings. In March, Chewy forecast it would grow revenue by between 8% and 9% and expand its earnings before interest, taxes, depreciation, and amortization ( EBITDA ) margin by about 100 basis points. And margin expansion is one of the biggest reasons to buy Chewy stock right now.

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