#2 - Chewy (NYSE:CHWY)
Chewy (NYSE: CHWY) may seem like an odd addition to a list of defensive stocks. However, that’s only because CHWY stock has only been publicly traded for a couple of years. The pandemic accelerated the company’s growth as its e-commerce model became an essential way for pet owners to buy food, toys, treats, and medication for their pets.
That has caused the stock to behave like a growth stock. In the last 12 months, CHWY stock is up more than 75%. However, in 2021, the stock is down 6%. But this is not because the company’s growth is slowing. In fact, the company has turned a profit in the last two quarters and it has grown revenue on a quarterly basis every quarter since going public.
I’m not claiming it will pay a dividend anytime soon. But the company’s core business is the definition of a defensive business model. Pet owners will continue to ensure their pets are cared for regardless of economic conditions. And Chewy facilitates that behavior.
About Chewy
Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It 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 retail websites and mobile applications.
Read More - Current Price
- $35.74
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $31.25 (12.6% Downside)
