What's Going On With Chewy Stock?

Chewy, Inc. CHWY shares are trading higher Tuesday, with the stock up more than 60% over the past month. Here's a look at what to know. 

What To Know:

The stock took off after the company reported strong first-quarter results at the end of May. Following the print, Goldman Sachs raised its price target to $35 and highlighted Chewy's operational improvements and accelerating revenue growth.

Chewy shares are moving on heavy trading volume Tuesday. According to data from Benzinga Pro, 8.06% of available shares are being sold short which can contribute to large price movements when combined with heavy trading volume. 

Shares are trading above the stock’s 50-day moving average of $17.99, but remain well-below its 52-week high of $40.78, according to data from Benzinga Pro. 

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Is CHWY A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Chewy, you'll notice that earnings in its last quarter grew 342.86% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Chewy's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is compressed 86.59% in the current quarter when compared with last year. That places it above similar businesses Tractor Supply, Ulta Beauty, Dick’s Sporting Goods in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Chewy's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

CHWY Price Action: According to Benzinga Pro, Chewy shares are up 14.8% at $26.28 at the time of publication Tuesday.

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