Raymond James Says Buy the Dip on Chewy Stock

The stock hit a 52-week low earlier this week

Laura McCandless

Deputy Editor

Feb 19, 2026 at 11:01 AM

CHWY

Pet retailer Chewy Inc (NYSE:CHWY) was last seen up 4.3% to trade at $25.20, after an upgrade from Raymond James to "outperform" from "market perform." The firm noted an "attractive" risk/reward profile after the stock's recent selloff, setting its price target at $28.

Chewy stock hit a 52-week low of $23.06 this past Tuesday, but yesterday snapped a six-day losing streak. Since the start of 2026, the shares have already dropped 24.2%.

Puts have been much more popular than usual over the past couple weeks, per CHWY's 10-day put/call volume ratio of 2.63 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other readings from the past year, and an unwinding of some of this pessimism could provide further tailwinds.

Adding to the potential for a sentiment shift, short interest has been rising , and now makes up 7.4% of the stock's available float. Plus, CHWY's 14-day relative strength index (RSI) of 22.7 points to a potential short-term bounce.

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