CHWY Blasted with Bull Notes Following Earnings Beat

Year-over-year, CHWY already sports an over 111% lead

Digital Content Manager
Mar 31, 2021 at 9:23 AM
facebook X logo linkedin


The shares of Chewy Inc (NYSE:CHWY) are surging this morning, up 15% at $92.47 at last check, after the pet goods e-tailer posted better-than-expected fourth-quarter profits and revenue. The company attributed the upbeat results to customer base growth, and noted years of preparation have positioned it as a leader in the e-commerce pet space. In response, the equity received no fewer than three price-target hikes, including one from Wedbush to $100 from $90.

On the charts, the security has been attempting to recover from several bear gaps that knocked it off its Feb. 16, all-time high of $120 all the way down to the $75 level. However, today's pop has helped shares break through overhead pressure at the $87 mark, while also reclaiming the 20-day moving average. Year-over-year, CHWY sports a 111.5% lead.

Analysts were already optimistic toward Chewy stock coming into today, with eight of the 13 in question calling it a "buy" or better, compared to five tepid "hold" or worse ratings. Plus, the 12-month consensus target price of $103.62 is a 28.9 % premium to last night's close.

Meanwhile, shorts have been building their positions, which could eventually lead to a short squeeze. Short interest is up 9.7% in the last two reporting periods, and the 11.46 million shares sold short account for an impressive 21.4% of the security's available float.

A shift in the options pits would create more tailwinds for the equity. This is per Chewy stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 87th percentile of its annual range. In other words, long puts have been picked up at a faster-than-usual rate. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI