#7 - Chewy (NYSE:CHWY)
One of the cautionary tales of the dot-com era was a company name Pets.com. But as the 2020s are proving, it was simply an idea ahead of its time. The last name on this list of eCommerce stocks to buy for the long haul is Chewy, Inc. (NYSE: CHWY).
The company is a pure-play eCommerce business that supplies pet food, supplies, medications and services for many pets. This is a niche company, but it’s a niche that is only going to grow over the next decade. Consumers continue to pay more and more to give their pets the best quality of life that they can. And there’s nothing to suggest that will be changing anytime soon.
Chewy has been profitable in its last five quarters ending in March 2023. And in each of those quarters, the company topped expectations that called for negative earnings per share. Another fact to consider is that institutions own 97% of CHWY stock. That’s a staggering number that reinforce the axiom that investors should pay attention to what institutional investors do more than what they say.
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
- $34.89
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $32.05 (8.1% Downside)
What we know as eCommerce started out as an online bookstore and has now grown to include your neighborhood grocery store and restaurant. Small businesses are making the transition to an omnichannel sales model that allows consumers to buy what they want, when they want and pick it up where they want.
And the reality is, the eCommerce sector will only continue to evolve as the internet moves into its next phase, called Web 3.0. Many of the companies on this list are already taking steps to ensure they remain relevant in this constantly evolving sector. But undoubtedly some new names will pop up.
As investors, it's up to each of us to pay attention to this market. And that's why you should count on MarketBeat to help you find opportunities in any market. If stock picking isn't for you, there are several exchange-traded funds (ETFs) that can give you exposure to this market.
One of the leading names in this space is the ProShares Online Retail ETF (NYSEARCA: ONLN). This fund focuses on many of the large cap names in this space which makes it less volatile.
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