Chewy (CHWY -4.60%) was a stock market darling during the pandemic. The online pet supply retailer boomed as locked-down consumers sought safe ways to shop for their pets.
As the necessity for social distancing waned, investors turned on the retail stock. However, Chewy's revenue never stopped growing even as customers returned to in-person shopping. The stock fell to a multiyear low in June 2026. However, the rebound that began late last month is likely to continue.
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The state of Chewy
Chewy stock is up 23% since bottoming late in June. However, it is still at the lower end of the range in which it has traded since settling down after the pandemic. Today, it trades at an 82% discount from its all-time high.
Now, it appears that most investors have not reconsidered the stock's value proposition. Chewy's revenue growth never stopped, and it has evolved from merely a retailer into a more comprehensive pet care company.
Besides its Chewy+ loyalty program and the ease of automatic purchases through autoship, it began to expand internationally by serving parts of Canada. Furthermore, it offers online telehealth services for pets, and has opened numerous vet clinics.
NYSE: CHWY
Key Data Points
In its fiscal 2026 first quarter, which ended May 3, its net sales rose by almost 8% from year-ago levels to $3.36 billion. That was slightly higher than its 6% increase during fiscal 2025.
Moreover, the company turned profitable after fiscal 2022 and has reported positive earnings in every year since. In fiscal Q1, its net income surged by 52% to $95 million. Although net income fell in 2025, it would have increased rapidly if not for a $241 million one-time income tax benefit in 2024 that impacted the comparison.
This means investors can now buy into a more solid company whose stock trades at a fraction of its valuation during the pandemic. For now, it sells at a price-to-earnings ratio (P/E) of 36, which is a bit of a premium compared to the S&P 500's average earnings multiple of 25.5. But its forward P/E of 14 indicates that it's inexpensive based on where the company's bottom line is expected to go in the near future.
Chewy as a rebounding stock
The company's continued business expansion and net sales growth amid a falling P/E ratio position the stock for a rebound. Investors may have lost interest in this e-commerce specialist after the pandemic. Nonetheless, it has evolved from just a retailer into more of a pet care company in that time.
Also, the huge surge in profits bodes well for prospective shareholders considering its low forward earnings multiple. Knowing this, investors may want to add the stock to their portfolios now before more people take notice of this increasingly attractive buying opportunity.
