Chewy Stock Buy Hold or Sell Recommendation

CHWY -  USA Stock  

USD 44.86  1.23  2.67%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Chewy Inc is 'Strong Sell'. Macroaxis provides Chewy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Chewy positions. The advice algorithm takes into account all of Chewy's available fundamental, technical, and predictive indicators you will find on this site.

Chewy Advice 

 
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The advice is provided from Chewy's buy-and-hold perspective. Continue to Chewy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Chewy and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Chewy Inc.

Execute Chewy Buy or Sell Advice

The Chewy recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Chewy Inc. Macroaxis does not own or have any residual interests in Chewy Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Chewy's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell ChewyBuy Chewy
Strong Sell

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very LowDetails

Economic Sensitivity

Almost neglects market trendsDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Chewy Inc has a Mean Deviation of 2.64, Standard Deviation of 3.54 and Variance of 12.54
Chewy advice module can be used to check and cross-verify current investment recommendation provided by analysts analyzing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Chewy is not overpriced, please confirm all Chewy Inc fundamentals, including its shares owned by institutions, current ratio, current asset, as well as the relationship between the ebitda and number of employees . Given that Chewy Inc has a number of shares shorted of 21.48 M, we suggest you to validate Chewy Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Chewy Trading Alerts and Improvement Suggestions

Chewy Inc generated a negative expected return over the last 90 days
Chewy Inc has high historical volatility and very poor performance
The company currently holds 401.14 M in liabilities with Debt to Equity (D/E) ratio of 6.08, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Chewy Inc has a current ratio of 0.87, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Over 88.0% of Chewy shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Chewy exotic insider transaction detected

Chewy current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Chewy analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Chewy analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price75.71
Target Median Price72.00
Target High Price133.00
Recommendation Mean2.10
Number Of Analyst Opinions18
Target Low Price46.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Chewy Returns Distribution Density

The distribution of Chewy's historical returns is an attempt to chart the future uncertainty of Chewy's future price movements. The chart of the probability distribution of Chewy stock daily returns describes the distribution of returns around its average expected value. We use Chewy Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Chewy returns is essential to provide solid investment advice for Chewy stock.
Mean Return-0.5Value At Risk-6.32
Potential Upside6.28Standard Deviation3.54
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Chewy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Chewy Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Chewy or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Chewy stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Chewy stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.51
β
Beta against DOW-0.11
σ
Overall volatility
3.58
Ir
Information ratio -0.15

Chewy Volatility Alert

Chewy Inc exhibits very low volatility with skewness of 0.08 and kurtosis of 0.48. However, we advise investors to further study Chewy Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Chewy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Chewy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Chewy Implied Volatility

Chewy's implied volatility exposes the market's sentiment of Chewy Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Chewy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Chewy stock will not fluctuate a lot when Chewy's options are near their expiration.

Chewy Fundamentals Vs Peers

Comparing Chewy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Chewy's direct or indirect competition across all of the common fundamentals between Chewy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Chewy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Chewy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Chewy by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Chewy to competition
FundamentalsChewyPeer Average
Return On Equity225.86 %(0.31) %
Return On Asset0.41 %(0.14) %
Profit Margin0.13 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation22.41 B16.62 B
Shares Outstanding106.79 M571.82 M
Shares Owned by Insiders20.67 %10.09 %
Shares Owned by Institutions87.93 %39.21 %
Number of Shares Shorted21.48 M4.71 M
Price to Book315.89 X9.51 X
Price to Sales2.44 X11.42 X
Revenue8.55 B9.43 B
Gross Profit1.82 B27.38 B
EBITDA48.72 M3.9 B
Net Income10.84 M570.98 M
Cash and Equivalents726.92 M2.7 B
Cash per Share1.74 X5.01 X
Total Debt401.14 M5.32 B
Debt to Equity6.08 %48.70 %
Current Ratio0.89 X2.16 X
Book Value Per Share0.16 X1.93 K
Cash Flow from Operations335.17 M971.22 M
Short Ratio4.10 X4.00 X
Earnings Per Share0.03 X3.12 X
Price to Earnings To Growth(272.00) X4.89 X
Number of Employees18.5 K18.84 K
Beta0.41-0.15
Market Capitalization20.86 B19.03 B
Total Asset567.27 M29.47 B
Retained Earnings(1.67 B)9.33 B
Working Capital(198.9 M)1.48 B
Current Asset482.75 M9.34 B
Current Liabilities681.65 M7.9 B
   Chewy exotic insider transaction detected [view details]

Chewy Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Chewy . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution387169.0
Daily Balance Of Power(0.36)
Rate Of Daily Change0.97
Day Median Price44.81
Day Typical Price44.82
Market Facilitation Index0.0
Price Action Indicator(0.56)

About Chewy Buy or Sell Advice

When is the right time to buy or sell Chewy Inc? Buying financial instruments such as Chewy Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Chewy investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2020 2021 2022 (projected)
Current Assets629.79 M1.23 B1.41 B1.14 B
Total Assets932.32 M1.74 B2 B1.59 B

Use Investing Ideas to Build Portfolios

In addition to having Chewy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Beer and Liquor Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Beer and Liquor theme has 29 constituents.
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Continue to Chewy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Chewy Inc information on this page should be used as a complementary analysis to other Chewy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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Is Chewy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Chewy. If investors know Chewy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Chewy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Chewy Inc is measured differently than its book value, which is the value of Chewy that is recorded on the company's balance sheet. Investors also form their own opinion of Chewy's value that differs from its market value or its book value, called intrinsic value, which is Chewy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Chewy's market value can be influenced by many factors that don't directly affect Chewy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chewy's value and its price as these two are different measures arrived at by different means. Investors typically determine Chewy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chewy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.