Chewy stock has cleared several key trendlines on the charts
Every day for the next three weeks, we're going to highlight one of Schaeffer's top 12 picks for 2024. Next up, we have pet e-tailer Chewy Inc (NYSE:CHWY). To access the entirety of the 2024 report, click here.
Pet food delivery service Chewy (CHWY) has averaged a revenue growth of 23.6% since its initial public offering (IPO) in 2019. Finally realigning after its Covid boom, the company is turning a profit and expects to see further revenue growth during 2024. The shares have also come off a double-bottom formation near $17, which is 22% below its IPO.
CHWY has not only broken out above its 50-and 80-day moving averages, but also a downtrending channel dating back to its June highs. Currently, 18% of the stock's total available float is sold short, leaving plenty of pent-up buying power. Plus, an unwinding of pessimism amongst analysts could provide tailwinds, as nine still carry a "hold" or worse rating.
