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 saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 24, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 41 instances where the indicator turned negative. In of the 41 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CHWY as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CHWY entered a downward trend on May 11, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 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 3-day Advance, the price is estimated to grow further. Considering data from situations where CHWY advanced for three days, in of 222 cases, the price rose further within the following month. The odds of a continued upward trend are .
CHWY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Valuation Rating of (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 (60.241) is very high in comparison to the industry average of (5.471). CHWY's P/E Ratio (250.000) is considerably higher than the industry average of (64.701). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.600). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (1.277) is also within normal values, averaging (8.429).
The Tickeron Profit vs. Risk Rating rating for this company is (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 95, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows