Chewy (CHWY, $80.61) gets buy rating from Guggenheim analysts
Shares of pet food retailer Chewy Inc. shares got a buy rating from Guggenheim analysts who initiated coverage of the stock.
Guggenheim analysts set a $95 price target on the shares. The analysts cited a fast-growing market, a leading industry position, significant new and existing customer opportunities and other tailwinds for Chewy.
"As of today, although CHWY only participates in ~70% of the combined pet products and services market, the recent launch of telehealth tele-triage service (connect with a vet) in October 2020 and compounding medication (customized medicines) in November 2020 showcases management’s commitment to driving increased participation in the services-related needs of pet parents," analyst Steven Forbes wrote. According to Forbes, Chewy customers have shown "an extreme level of customer loyalty".
Chewy’s active customer base has grown to 19.2 million in 2020 from 1.5 million in 2015, implying 66% compound annual growth.
CHWY in upward trend: price expected to rise as it breaks its lower Bollinger Band on May 11, 2022
CHWY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 19 of 22 cases where CHWY's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 86%.
Current price $27.95 is below $114.31 the lowest resistance line found by A.I. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -35% Downtrend, while the week of 05/06/22 - 05/13/22 shows a +2% Uptrend.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CHWY's RSI Oscillator exited the oversold zone, 12 of 14 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 86%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 19 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +18.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHWY advanced for three days, in 129 of 164 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
The Momentum Indicator moved below the 0 level on April 14, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on CHWY as a result. In 40 of 51 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The 10-day Moving Average for CHWY crossed bearishly below the 50-day moving average on April 07, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 4 of 6 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHWY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
The Aroon Indicator for CHWY entered a downward trend on May 13, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.81.
The Tickeron PE Growth Rating for this company is 88 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 94 (best 1 - 100 worst), indicating slightly worse than average price growth. CHWY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CHWY's P/B Ratio (769.231) is very high in comparison to the industry average of (19.948). CHWY's P/E Ratio (1428.571) is considerably higher than the industry average of (97.611). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.022). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. P/S Ratio (1.313) is also within normal values, averaging (71.438).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHWY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
The average market capitalization across the Internet Retail Industry is 21B. The market cap for tickers in the group ranges from 30 to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is YUKA at 30.
The average weekly price growth across all stocks in the Internet Retail Industry was -0.64%. For the same Industry, the average monthly price growth was -6.33%, and the average quarterly price growth was -26.79%. AHAHF experienced the highest price growth at 256.87%, while BHHOF experienced the biggest fall at -48.01%.
- 5/5/22 4:57 AM: Chewy (CHWY, $32.51) was a top weekly gainer, with a +5.48% jump
- 4/15/22 4:35 AM: Chewy (CHWY, $39.93) was a top loser this week, declining -8.4%
- 4/6/22 8:51 AM: Chewy (CHWY, $44.24) was a top loser this week, declining -13.25%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the Internet Retail Industry was 13.94%. For the same stocks of the Industry, the average monthly volume growth was 50.08% and the average quarterly volume growth was 5.71%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Momentum Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 61%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.37.
22 stocks in the group of tickers exhibit a similar negative trend based on the TrendWeek indicator with an average likelihood of 81%.
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), JD.com (NASDAQ:JD), Shopify (NYSE:SHOP), Pinduoduo (NASDAQ:PDD), Chewy (NYSE:CHWY), Wayfair (NYSE:W), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Overstock.com (NASDAQ:OSTK).
The average market capitalization across the group is 41B. The market cap for tickers in the group ranges from 6.5M to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is YGYI at 6.5M.
- 5/14/22 4:23 AM: Amazon.com (AMZN, $2,261.1), market cap jumped by $62.3B
- 5/10/22 5:36 AM: Amazon.com (AMZN, $2,175.78) saw a $159.8B market cap decrease this week
- 5/3/22 8:18 AM: Amazon.com (AMZN, $2,490) saw a $219.0B market cap decrease this week
The average weekly price growth across all stocks in the group was -4.69%. For the same group, the average monthly price growth was -18.98%, and the average quarterly price growth was -49.53%. APRN experienced the highest price growth at 13.23%, while REAL experienced the biggest fall at -26.61%.
- 5/14/22 4:23 AM: Coupang (CPNG, $13.34) was a top weekly gainer, with a +10.8% jump
- 5/14/22 4:23 AM: Blue Apron Holdings (APRN, $3.68) was a top weekly gainer, with a +13.23% jump
- 5/14/22 4:23 AM: Qurate Retail (QRTEA, $3.84) was a top weekly gainer, with a +5.21% jump
The average weekly volume growth across all stocks in the group was 32.44%. For the same stocks of the group, the average monthly volume growth was 97.94% and the average quarterly volume growth was 150.98%
- 4/21/22 5:10 AM: The volume for FansUnite Entertainment stock increased for one day, resulting in a record-breaking daily growth of 255% of the 65-Day Volume Moving Average
- 4/1/22 8:42 AM: The volume for LIGHTINTHEBOX HOLDING stock increased for two consecutive days, resulting in a record-breaking daily growth of 277% of the 65-Day Volume Moving Average
- 3/31/22 6:34 AM: The volume for LIGHTINTHEBOX HOLDING stock increased for one day, resulting in a record-breaking daily growth of 244% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows