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Should You Buy, Hold or Sell Chewy Stock Before Q1 Earnings?
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Key Takeaways
Chewy is expected to post 6.9% revenue growth to $3.08 billion in its fiscal first-quarter results.
CHWY's Q1 EPS estimate is 34 cents, indicating a 9.7% increase from the year-ago reported figure.
Autoship growth, ad platform expansion and vet services rollout are key drivers of CHWY's strategy.
As Chewy Inc. (CHWY - Free Report) prepares to unveil its first-quarter fiscal 2025 earnings results on June 11 before market open, investors face an important decision: Should they buy the stock now or hold their current positions?
With earnings expectations and market conditions in mind, it is crucial to evaluate key factors influencing Chewy’s performance and whether the stock offers an attractive entry point ahead of its earnings report.
CHWY has established a solid presence in the online pet retail space by prioritizing innovation and customer loyalty. Backed by a growing customer base and an expanding range of offerings that include veterinary and pharmacy services, Chewy is well-positioned to achieve sustained long-term growth.
The Zacks Consensus Estimate for first-quarter revenues stands at $3.08 billion, which indicates an increase of 6.9% from the prior-year reported figure. On the earnings front, the consensus estimate has been unchanged at 34 cents per share over the past 30 days, implying a 9.7% year-over-year rise.
Image Source: Zacks Investment Research
Chewy has a trailing four-quarter earnings surprise of 19.3%, on average. In the last reported quarter, this Plantation, FL-based company surpassed the Zacks Consensus Estimate by a margin of 33.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
What the Zacks Model Predicts About CHWY’s Q1 Earnings
As investors prepare for Chewy's fiscal first-quarter results, a question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for CHWY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Chewy has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CHWY has built a strong foothold in the online pet retail industry by focusing on innovation, convenience and customer loyalty. Its top line is likely to have benefited from a steadily expanding customer base, consistent recurring revenues and a growing portfolio of services that now includes veterinary and pharmacy offerings. Reflecting this momentum, the Zacks Consensus Estimate points to a 5.7% increase in Consumables net sales and a 6.1% rise in Hardgoods net sales for the fiscal first quarter.
A key driver behind this growth is Chewy’s Autoship program, which continues to anchor revenue stability. By allowing customers to schedule automatic deliveries of essential pet products, Autoship fosters repeat purchases and builds long-term habits. As the adoption of this service grows, so does the company’s stream of recurring revenues, helping Chewy weather fluctuations in broader consumer spending.
CHWY’s active customer growth supports its positive outlook. Improved digital experiences, along with enhanced offerings such as the Chewy+ Membership Program, have helped the company attract users, win back previous ones and reduce churn. This has resulted in a more engaged and loyal customer base. The Zacks Consensus Estimate suggests that the active customer count likely reached 20.5 million in the quarter, signaling continued momentum in user growth and retention.
The company is also seeing early success in newer, higher-margin areas. Its in-house sponsored ad platform has started contributing meaningfully to revenues and margins by giving Chewy full control over ad formats and placements. At the same time, the expansion of vet care clinics is proving effective in boosting customer acquisition and engagement. These offerings complement its core retail operations and deepen customer relationships.
CHWY Takes the Lead in Market Rally
Chewy has witnessed an impressive increase in its stock price over the past month. Closing last Friday’s trading session at $48.21, the stock has rallied 22.1%, outpacing the industry’s rise of 1.2%.
CHWY has outperformed its competitors, including Central Garden & Pet Company (CENT - Free Report) , Petco Health and Wellness Company, Inc. (WOOF - Free Report) and BARK, Inc. (BARK - Free Report) . Shares of Central Garden & Pet Company, Petco Health and Wellness Company and BARK have declined 1%, 12.7% and 25.4%, respectively, over the same period.
Image Source: Zacks Investment Research
Does Chewy Qualify as a Value Stock?
From a valuation standpoint, CHWY currently trades at a discount relative to its industry peers. The company’s forward 12-month price-to-sales (P/S) ratio is 1.57, lower than the industry average of 2.00 and the sector’s average of 1.64. This favorable valuation highlights an opportunity to invest in Chewy’s promising growth at a reasonable price.
Chewy is trading at a premium compared with Central Garden & Pet Company (forward 12-month P/S ratio of 0.74), Petco Health and Wellness Company (0.15) and BARK (0.35).
CHWY’s Valuation vs. Industry
Image Source: Zacks Investment Research
Should CHWY Be in Your Portfolio Pre-Q1 Earnings?
Chewy’s continued investments in automation, high-margin advertising and veterinary services reflect its commitment to long-term growth and operational efficiency. The company’s expanding Autoship base and solid revenue guidance support a strong business foundation. Despite recent stock outperformance and attractive valuation, the lack of a clear earnings beat signal adds caution. Existing investors may choose to hold, while new entrants may wait for post-earnings confirmation or a better entry point.
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Should You Buy, Hold or Sell Chewy Stock Before Q1 Earnings?
Key Takeaways
As Chewy Inc. (CHWY - Free Report) prepares to unveil its first-quarter fiscal 2025 earnings results on June 11 before market open, investors face an important decision: Should they buy the stock now or hold their current positions?
With earnings expectations and market conditions in mind, it is crucial to evaluate key factors influencing Chewy’s performance and whether the stock offers an attractive entry point ahead of its earnings report.
CHWY has established a solid presence in the online pet retail space by prioritizing innovation and customer loyalty. Backed by a growing customer base and an expanding range of offerings that include veterinary and pharmacy services, Chewy is well-positioned to achieve sustained long-term growth.
The Zacks Consensus Estimate for first-quarter revenues stands at $3.08 billion, which indicates an increase of 6.9% from the prior-year reported figure. On the earnings front, the consensus estimate has been unchanged at 34 cents per share over the past 30 days, implying a 9.7% year-over-year rise.
Image Source: Zacks Investment Research
Chewy has a trailing four-quarter earnings surprise of 19.3%, on average. In the last reported quarter, this Plantation, FL-based company surpassed the Zacks Consensus Estimate by a margin of 33.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Chewy Price, Consensus and EPS Surprise
Chewy price-consensus-eps-surprise-chart | Chewy Quote
What the Zacks Model Predicts About CHWY’s Q1 Earnings
As investors prepare for Chewy's fiscal first-quarter results, a question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for CHWY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Chewy has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Chewy: Key Factors at Play
CHWY has built a strong foothold in the online pet retail industry by focusing on innovation, convenience and customer loyalty. Its top line is likely to have benefited from a steadily expanding customer base, consistent recurring revenues and a growing portfolio of services that now includes veterinary and pharmacy offerings. Reflecting this momentum, the Zacks Consensus Estimate points to a 5.7% increase in Consumables net sales and a 6.1% rise in Hardgoods net sales for the fiscal first quarter.
A key driver behind this growth is Chewy’s Autoship program, which continues to anchor revenue stability. By allowing customers to schedule automatic deliveries of essential pet products, Autoship fosters repeat purchases and builds long-term habits. As the adoption of this service grows, so does the company’s stream of recurring revenues, helping Chewy weather fluctuations in broader consumer spending.
CHWY’s active customer growth supports its positive outlook. Improved digital experiences, along with enhanced offerings such as the Chewy+ Membership Program, have helped the company attract users, win back previous ones and reduce churn. This has resulted in a more engaged and loyal customer base. The Zacks Consensus Estimate suggests that the active customer count likely reached 20.5 million in the quarter, signaling continued momentum in user growth and retention.
The company is also seeing early success in newer, higher-margin areas. Its in-house sponsored ad platform has started contributing meaningfully to revenues and margins by giving Chewy full control over ad formats and placements. At the same time, the expansion of vet care clinics is proving effective in boosting customer acquisition and engagement. These offerings complement its core retail operations and deepen customer relationships.
CHWY Takes the Lead in Market Rally
Chewy has witnessed an impressive increase in its stock price over the past month. Closing last Friday’s trading session at $48.21, the stock has rallied 22.1%, outpacing the industry’s rise of 1.2%.
CHWY has outperformed its competitors, including Central Garden & Pet Company (CENT - Free Report) , Petco Health and Wellness Company, Inc. (WOOF - Free Report) and BARK, Inc. (BARK - Free Report) . Shares of Central Garden & Pet Company, Petco Health and Wellness Company and BARK have declined 1%, 12.7% and 25.4%, respectively, over the same period.
Image Source: Zacks Investment Research
Does Chewy Qualify as a Value Stock?
From a valuation standpoint, CHWY currently trades at a discount relative to its industry peers. The company’s forward 12-month price-to-sales (P/S) ratio is 1.57, lower than the industry average of 2.00 and the sector’s average of 1.64. This favorable valuation highlights an opportunity to invest in Chewy’s promising growth at a reasonable price.
Chewy is trading at a premium compared with Central Garden & Pet Company (forward 12-month P/S ratio of 0.74), Petco Health and Wellness Company (0.15) and BARK (0.35).
CHWY’s Valuation vs. Industry
Image Source: Zacks Investment Research
Should CHWY Be in Your Portfolio Pre-Q1 Earnings?
Chewy’s continued investments in automation, high-margin advertising and veterinary services reflect its commitment to long-term growth and operational efficiency. The company’s expanding Autoship base and solid revenue guidance support a strong business foundation. Despite recent stock outperformance and attractive valuation, the lack of a clear earnings beat signal adds caution. Existing investors may choose to hold, while new entrants may wait for post-earnings confirmation or a better entry point.