With COVID-19 coming back stronger than ever its time to break open the stay-at-home stocks. So here is the breakdown on $CHWY otherwise known as Chewy.
Current Price: $47.08
52/Wk High: $52.77
52/Wk Low: $20.62
Read below for the breakdown.
With COVID-19 coming back and some stay at home names like $CHWY not skyrocketing again, I see an opportunity in Chewy.
Chewy is a mainstream online retailer for name-brand pet food, supplies, and grooming materials. With online sales increasing at an exponential rate due to COVID-19, $CHWY is almost a no brainer when it comes to investments.
So far Chewy is seeing increasing demand. In the Q1 report, Chewy announced that they have seen a whopping 46% increase in sales YOY to a hefty $1.62 billion. Not only that but the revenue equates to a massive additional 1.6 million active customers.
With COVID-19 coming back strong, states closing back down, and people realizing online shopping is easier, I see no reason these customers will not stay long term.
The earnings reflected the growth in Q1. $CHWY reported a beat with a $-0.12 EPS versus the analyst’s consensus of $-0.16. The company also reported a beat on revenue with a respectable $1.6 billion.
While earnings were still not positive, they were better than expected and the companies cash position is also great in case of any headwinds. When last reported Chewy has a cash on hand position of $193 million, representing a whopping 557.16% increase in cash.
Analysts are also very bullish on $CHWY. Currently, the average price target is $56.10/share representing a 19.16% profit. Secondly, the high is $65.00/share and low is $45.00/share, so analysts are mainly in agreement.
Not only are analysts bullish but the big money is too. Currently, 79.70% of common stock is owned by institutions and insiders. Top holders include Baillie Gifford & Co, ClearBridge Investments, and Janus Henderson Investors.
Finally, $CHWY has dropped off its high of $52.77 significantly, making it ripe for buying. Overall I like the company and stock, especially given that COVID-19 is back on the rise.
Over the coming days and weeks, I will be looking to make some changes in the portfolio, and $CHWY will definitely be a name in which I consider.
EAT - SLEEP - PROFIT