Long Position on CHWY @ $38.00 on 3/31/2020 (Momentum)

Chewy, Inc. (CHWY), together with its subsidiaries, engages in the pure play e-commerce business in the United States.

The company provides pet food, pet products, pet medications, and other pet health products 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 45,000 products from 1,600 partner brands.

Chewy reported a 3rd Quarter October 2019 loss of $0.20 per share on revenue of $1.2 billion. The consensus estimate was a loss of $0.16 per share on revenue of $1.2 billion.

The company said in its shareholders letter it expects fourth quarter revenue of $1.33 billion to $1.35 billion. The current consensus revenue estimate is $1.32 billion for the quarter ending January 31, 2020.

The recent IPO should continue to see a rise in revenue as more consumers choose to stay home and use the delivery service for their pet supplies.

Buyers please note that the company reports earnings this Thursday, April 2, 2020. 

Entry point: $38.00

52-week trade range: $20.62 - $41.34

Stop/Loss: $36.10

Target Price: $41.80

Updates

4/14/2020 1:25:36 PM

CHWY closed at $42.31

Position closed on 4/14/2020 at price of $42.31 with a 11.34% gain in 14 days.

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