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Chewy, Inc.Chewy, Inc.Chewy, Inc.

Chewy, Inc.

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CHWY trade ideas

PEG Continuation Trade - Ticker: $CHWYSetup: PEG Continuation Key Criteria: 1. Market Cap of $10 billion or more. 2. High Relative Volume on Close (2Rvol+). 3. Ideally, the price has reached a key daily/weekly support or resistance zone without gapping into a range (i.e., not in the middle of a range). 4. The stock is "in play" or on the verge of forming a new trend. Specifics for CHWY: * Market Cap: $12.52 billion * Share Float: 118 million * Short Float: 12.58% * Average Volume: 10.99 million * Relative Volume: 3.13 * Catalyst: Recent earnings release * Current Trend: In play Trade Details: * Position: Long * Entry Price: $30.62 (High of Day) * Stop Loss: $28.50 (below intraday pivot and VWAP close) * Risk: 0.75% of account equity * Order Type: Buy Stop Order Targets: 1. Target 1: $35.21 (2.17R) — Weekly Fair Value Gap (FVG) resistance. 2. Target 2: $36.30 (2.68R) — Weekly Fair Value Gap (FVG) resistance. Exit Techniques: * Scale out 33% of the original position size at Target 1 ($35.21). * Scale out another 33% of the original position size at Target 2 ($36.30). * Exit the remaining 34% based on a "Reason2Sell" (R2S) approach, which includes: * Price Reversal Patterns: Double tops, head and shoulders, falling wedges. * Overbought Conditions: RSI exceeding 70. * Negative Divergence: Price makes a new high, but technical indicators do not confirm. * Support Level Breakdown: Price breaking below a significant support level. * Increased Volatility: A sudden surge in volatility or trading volume indicating potential selling pressure. Reasoning: CHWY presents a potential short squeeze opportunity, given its 12.38% short float and multiple rejections of the $30 level on the daily chart. The stock shows signs of bottoming, with prices holding above $24 and currently trading above the Anchored VWAP (AVWAP) from the last earnings. The trade idea is to go long above the High of Day (HOD) with a stop loss at VWAP, targeting a move towards $36+. The trade is also influenced by NVDA's earnings, which caused CHWY to gap down after hours. While it's unclear if dip buyers will sustain the stock's recovery, CHWY, as a pet food stock, may attract different investor interest compared to AI-focused stocks like SMCI. The strategy is based on solid earnings, key support and resistance levels, and a daily chart showing consolidation following significant market activity. Earnings Recap: * Net Sales: $2.86 billion, a 2.6% increase year over year. * Diluted EPS: $0.68, up $0.63 year over year. * Adjusted EPS: $0.24, up $0.09 year over year. * Gross Margin: 29.5%, up 120 basis points year over year. * Net Income: $299.1 million, including $82.5 million in share-based compensation and related taxes. * Net Margin: 10.5%, up 980 basis points year over year. * Basic EPS: $0.70, up $0.65 year over year. “Our Q2 performance reflects another quarter of strong execution, delivering net sales at the high end of our guidance range,” said Sumit Singh, CEO of Chewy. “Chewy’s compelling value proposition is driving broader and deeper customer engagement, as reflected by our 20 million active customers, which grew sequentially in the quarter, and net sales per active customer of $565, a new record for the company.” Stop Loss Strategy: * The stop loss will be updated after the first profit target is reached and shares are scaled out. Additional Notes: * Set orders to automatically scale out shares. If the take profit (TP) is hit and you are still holding the full position size, manage your risk accordingly. * If you have any questions, please feel free to ask. I'm here to support and help you become a consistent trader. Position Sizing: * Details will be provided soon.
NYSE:CHWYLong
by thinkCNE
Chewy ($CHWY) Q2 Results: A Mixed Bag with Promising PotentialChewy Inc. (NYSE: NYSE:CHWY ), the well-known e-commerce pet food and supplies retailer, reported its Q2 FY2024 results in line with expectations, showcasing a mix of stable revenue growth and improved profitability metrics. The company, founded by Ryan Cohen (known for his involvement in GameStop), continues to hold its ground in the e-commerce sector, benefiting from strong consumer demand and shifting shopping habits. Fundamental Highlights Chewy's Q2 CY2024 earnings reflect moderate revenue growth and better-than-expected profitability: Revenue: Chewy's revenue rose 2.6% year-over-year to $2.86 billion, slightly surpassing analyst estimates of $2.86 billion. Though this is a modest increase, it aligns with market expectations and highlights the company's ability to maintain stable growth amid economic uncertainties. Non-GAAP earnings per share came in at $0.24, beating analysts' projections of $0.21 by 14.1%. This demonstrates Chewy’s ability to enhance profitability, driven by improved operational efficiencies and cost management. The gross margin expanded to 29.5% from 28.5% in the same quarter last year, indicating better cost controls and pricing strategies. While the EBITDA margin improved significantly to 5.1%, up from 3.2% a year ago, reflecting a strong bottom-line performance. Free cash flow margin also rose to 3.2%, compared to 1.8% in the previous quarter, signaling better cash management and liquidity. Strategic Positioning and Market Dynamics Chewy (NYSE: NYSE:CHWY ) remains a trusted destination for pet owners, with a compelling value proposition that continues to drive customer engagement. The company boasts 20 million active customers and a record net sales per active customer of $565. As e-commerce adoption remains robust, Chewy is strategically positioned to capture future growth, although its recent growth rates have been modest compared to its previous trajectory. With the global e-commerce market still expanding, especially post-COVID, Chewy's investments in its logistics infrastructure and product portfolio should support its growth ambitions. However, the company's revenue growth, which averaged 12% over the last three years, was only 2.6% this quarter — highlighting the challenge of maintaining high growth in a more mature market. Technical Outlook From a technical perspective, Chewy’s stock ( NYSE:CHWY ) is showing bullish signs: Moving Averages: The stock is currently trading above its 50, 100, and 200-day moving averages, which suggests a bullish trend. This is typically seen as a positive indicator by technical analysts, indicating upward momentum. The RSI is currently at 64.34, approaching the overbought territory of 70. This suggests that while there is still room for upward movement, traders should exercise caution as the stock nears potentially overbought conditions. Chewy (NYSE: NYSE:CHWY ) has rebounded from a recent low and is moving toward a pivot point of $31.47. Investors might watch for a potential pullback or consolidation at this level before a possible new upward move. Conclusion: A Balanced Perspective Chewy's Q2 results reflect a stable performance with room for growth. The company’s improved margins and profitability highlight its operational strengths, while its technical indicators suggest potential bullish momentum. However, with its revenue growth tapering, Chewy will need to find new ways to reignite its expansion. As consumer preferences continue shifting online and pet ownership remains strong, Chewy is well-positioned for future gains — but cautious optimism remains the key.
NYSE:CHWYLong
by DEXWireNews
Chewy about to explode (6,000x RETURN options idea inside)Already broke out and retested. Now it's ready to blast-off. Funny thing is, NYSE:CHWY correlates with silver at almost 80% correlation! Unfortunately, NYSE:CHWY hasn't blasted off like silver and the correlation got cut in half (link to charts in comments). MACD is signaling a blast-off also... August calls are going for $20 for $55 strike price, price could go up to $100 if it correlated again with silver. This play could 10x and go up to 60x return!!!
NYSE:CHWYLong
by EmptyEternity
Chewy Stock Surges 25.37% on First Quarter 2024 Financial ResultChewy stock ( NYSE:CHWY ) surged 25.37% on the first quarter 2024 financial result, following a strong Q1 2024 earnings report that beat Wall Street estimates and an increase in Autoship sales. The company reported adjusted earnings of 31 cents a share on revenue of $2.88 billion for the quarter ended April 28, beating analysts' expectations of 20 cents a share on revenue of $2.85 billion. In the same period last year, the company posted earnings of 20 cents a share on revenue of $2.79 billion. Chewy ( NYSE:CHWY ), a pet supplies website, is known for its Autoship offering, which allows users to have items scheduled to automatically be delivered at their home for a discount. During the quarter, Chewy reported a 6.4% increase in Autoship customer sales from a year ago to $2.23 billion. The pandemic-driven surge in pet adoptions during the height of Covid-19 saw a jump in demand, but adoptions have slowed and rising prices have seen Chewy ( NYSE:CHWY ) take a hit. The company's financial results for the first quarter of fiscal year 2024 ended April 28, 2024, showed strong net sales and record-breaking Adjusted EBITDA. Technical Outlook Chewy stock ( NYSE:CHWY ) stock is up 26% as of the time of writing prior to the earnings beat. The stock's Relative Strength Index (RSI) of 74.51 signifies the stock is currently overbought.
NYSE:CHWYLong
by DEXWireNews