CHWY safe haven if June dip happensHello everyone!
Today I am looking at CHWY and all I am definitely seeing a potential long here.
Whos is Chewy?
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its chewy.com retail Website, as well as its mobile applications. It offers approximately 70,000 products from 2,500 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy, Inc. is a subsidiary of PetSmart, Inc.
Why should you long Chewy?
In my opinion, the management and company spirit is what you should be looking at here. Chewy has singled itself out as one of the most customer friendly pet stores, and has recently suffered a slight dip. Looking at this from a fundamental point of view, it is one of the most promising companies, enjoying amazing growth throughout the pandemic and establishing itself as a staple in the pet food market. It differentiates itself from Amazon and other retailers with the aforementioned warmth towards the customer.
Looking at this from an technical point of view, I see an inverted H&S formed at the end of the dip, and I feel this is confirmed strongly by recent growth. I think growth back towards ~85$ is very much possible here. Keep in mind that at the time of writing, the stock is still at the lowest point it's been in the last 6 months, with a good bullish reversal already confirmed!
On an ending note, I want to say that this might be a safe haven in case the market suffers a dip in June, because of its powerful growth potential and inertia of the bounce. Good luck and make some money!
