Soft (NYSE:CHWY) has been going through a rough patch in recent years, down from its peak in 2021. But in recent months, stock performance has improved – and is finally starting to reflect the strong earnings reports and outlook. the future of Chewy.
The company sells everything your pet needs, from treats to prescription medications, and pet parents are spending more and more at this online store. So if you had invested $10,000 in Chewy a few months ago, when the stock was still trading near a low point, how much would you have today? Let’s find out.
A step in the right direction
If you had invested $10,000 in Chewy three months ago, that investment would be worth $12,500 today – not a huge increase but a definite step in the right direction given the company’s performance. Chewy action in recent years. The stock has lost more than 70% over the past three years, so investors have struggled despite Chewy’s promising earnings growth.
But this recent momentum may just be the beginning for Chewy, and the gains would be well deserved. From the company income has increasedand it is profitable, debt-free and has over $1.1 billion in liquidity.
In addition to this positive financial profile, Chewy has also shown that it has what it takes to keep its profits growing. Autoship, a service that reorders and ships customers’ favorite products to their doorstep, accounts for more than 70% of Chewy’s total sales. This shows that most of Chewy’s sales come from loyal customers – a very positive point and a reason to be optimistic about continued sales growth.
So, yes, Chewy’s stock performance has disappointed investors over the past few years, but the recent recovery and strong earnings signal that better times may be ahead. And that means it’s a great idea to hold on to your Chewy shares or buy the shares now and watch this growth story unfold.
Should you invest $1,000 in Chewy right now?
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool posts and recommends Chewy. The Mad Motley has a disclosure policy.
If You Invested $10,000 in Chewy Stock 3 Months Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
