- One of them, an AI CPU developer, just signed a deal with Apple to get its tech in the iPhone and iMac until 2040!
- Another just signed a deal with Walmart to get its tech in every single one of Walmart’s regional distribution centers.
- A third developed new internet technology that is dramaticall faster than both Amazon and Google.
Chewy Stock: Why Analysts Say Boring May Be the Best Buy
Written by Gabriel Osorio-Mazilli. Published 9/30/2025.
Key Points
- Due to its strong business model, Chewy stock is harnessing attention from Wall Street analysts as one of the best plays in the consumer sector.
- Wall Street analysts are raising their price targets on the stock as they recognize its strong positioning.
- A recent $500 million buyback from management confirms the stock may be cheap today.
Safety may be dull, but when markets are stretched thin, a steady strategy can be the smartest move. With the S&P 500 hovering near record highs and the Federal Reserve poised to cut rates, investors should not assume this cycle will mirror the last. Unlike the purely stimulative rate cuts of the COVID-19 era, today's environment—where inflation remains near 3%—requires a different approach.
That's why stable, cash-generating businesses are drawing renewed interest as havens from volatility. Chewy (NYSE: CHWY) exemplifies this trend: its subscription-based model delivers predictable revenue, and a loyal customer base underpins consistent growth. In uncertain markets, these traits often stand out.
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Analysts are taking notice, raising their price targets to anticipate a potential upside. Should Chewy outpace its sector and the broader market, these early forecasts will look prescient.
Why Wall Street Likes Chewy Stock
In the consumer staples sector, few names offer the same recession resilience as Chewy. Pet spending tends to remain steady regardless of economic cycles or inflationary pressures—households make room in their budgets for furry family members, providing Chewy with a durable revenue base.
That dependability underpins growing analyst confidence. The consensus price target for Chewy shares is now $45.84, suggesting roughly 16% upside. Some are even more optimistic: Michael Morton of Moffett Nathanson recently initiated a Buy rating with a $48 target, pointing to a potential 21% gain—near the stock's 52-week high.
Fundamentals reinforce the story. Chewy boasts a gross profit margin of 29.5% and a return on invested capital (ROIC) of 15.7%. ROIC is a key gauge of how efficiently a company reinvests earnings to generate value, and it often correlates with long-term stock performance.
Investors are willing to look past Chewy's steep price-to-earnings (P/E) ratio of 113.3x—versus the retail sector average of 20.2x—because they're paying for durable growth. That premium reflects strong expectations, and a detailed comparison with industry peers shows why Chewy stands out.
Institutional Optimism Builds
It's not just analysts who are bullish—institutions are also increasing their exposure. As of August 2025, Invesco Ltd. boosted its stake in Chewy by 34.7%, bringing its holding to $306.3 million, or 1.7% of the company.
Meanwhile, BC Partners trimmed its position, but that move appears driven more by routine portfolio rebalancing than by a lack of conviction—especially after Chewy's shares climbed 18.4% year-to-date, outpacing the S&P 500 by nearly five percentage points.
More telling is Chewy's response: the company repurchased the $500 million stake (about 3% of its market cap) directly from BC Partners. Rather than hoard cash, management redeployed capital back into the business—a strong signal of insider confidence and a further indication that shares may be undervalued.
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