Chewy (CHWY -2.83%) has had a difficult time in recent years, declining from a high reached back in 2021. But over the past few months, stock performance has been looking brighter -- and finally is starting to reflect Chewy's solid earnings reports and future prospects.
The company sells everything your pet needs, from treats to prescription medicine, and pet parents are spending more and more at this e-commerce shop. So, if you invested $10,000 in Chewy a few months ago, when the stock still was trading close to a low point, how much would you have today? Let's find out.
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A step in the right direction
If you'd invested $10,000 in Chewy three months ago, today that investment would be worth $12,500 -- not an enormous increase but a definite step in the right direction considering Chewy's share performance in recent years. The stock has lost more than 70% over the past three years, so investors have had it tough in spite of Chewy's promising earnings growth.
But this recent momentum may be just the beginning for Chewy, and the gains would be well deserved. The company's revenue has climbed, and it's profitable, debt-free, and has more than $1.1 billion in cash.
On top of this positive financial profile, Chewy also has shown it has what it takes to keep earnings progressing. Autoship, a service that reorders and ships customers' favorite products to their doors, makes up more than 70% of Chewy's total sales. This shows that most of Chewy's sales come from returning customers -- a very positive point and one reason to be optimistic about sales growth continuing.
So, yes, Chewy's share performance disappointed investors over the past few years, but the recent rally and earnings strength signal better times may be ahead. And that means it's a great idea to hold onto your Chewy shares or buy the stock now and watch this growth story develop.
