Research Notes: Chewy Goes To The Dogs

Suddenly at an all-time low, CHWY stock looks intriguing and risky

Highlights:

• CHWY has been halved in a little over two months. But the catalyst seems to be a change in market perception, rather than new information from the business.

• A long-term track record of growth, and impressive market share gains, suggest the sell-off creates an opportunity to own a quality business.

• But there are legitimate long-term concerns that have been highlighted by recent results.

• If an investor believes in the business, Chewy is an easy buy. But customer churn is a major concern.