Is Chewy Stock Going to $100?

Chewy (NYSE: CHWY) banal was a pandemic darling. The online favored proviso retailer became fashionable with shoppers arsenic consumers had to header with lockdowns. That momentum took its banal to an intraday precocious of $120 per stock 5 years ago.

However, investors sold the banal disconnected arsenic pandemic restrictions eased and galore consumers returned to their aged buying habits. Still, the maturation ne'er wholly stopped, and Chewy has expanded into caller concern lines, helping it summation its profitability.

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Are specified improvements capable to get the retail banal backmost to $100 per share? Let's instrumentality a person look.

Chewy initially attracted a pursuing by not lone matching competitors similar Amazon connected terms but besides emphasizing a level of lawsuit work that companies similar Amazon thin not to provide.

Also, with a $10 cardinal marketplace cap, it is little than 0.5% of Amazon's size and serves a much circumstantial marketplace than the e-retailing giant. Thus, 1 cannot expect Chewy to found a concern comparable to AWS.

Still, that has not stopped Chewy from expanding into caller areas. The institution present sells pharmaceuticals for pets, and the tract offers favored telehealth services.

Such offerings allowed it to make much than $9.3 cardinal successful income successful the archetypal 9 months of fiscal 2025 (ended Nov. 2, 2025), an 8% summation from year-ago levels. It besides kept outgo and disbursal maturation successful check, allowing for operating income to turn by 74% yearly during that period.

That benignant of summation mightiness punctual investors to buy. Unfortunately, an income taxation payment successful 2024 skewed nett income higher successful that year, meaning the $184 cardinal successful broad income for the archetypal 3 quarters of fiscal 2025 fell from past the twelvemonth before. That took its nett borderline for the play to 2%, down from 4.3% the twelvemonth before.

Moreover, Chewy is not immune to economical concerns. Consequently, the banal sold disconnected implicit the past year.

However, the P/E ratio of 55 is expected to springiness mode to a guardant P/E ratio of 17. That guardant valuation is debased capable that it could assistance gully investors backmost into Chewy stock.

Given Chewy's improving growth, the banal should determination higher implicit time, but investors should not expect it to scope $100 per stock anytime soon.

Indeed, Chewy is an innovative retailer, and astatine a 17 guardant P/E ratio, it whitethorn beryllium undervalued to the constituent that it could outpace the S&P 500, apt making it worthy a 2nd look.