Shares in online pets group Chewy (CHWY) bounded higher today on hopes that owners are still spending on their furry friends despite economic uncertainty.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Demand Stays Strong
According to a new report from analysts at TD Cowen, purchases of Chewy products are up in the fourth quarter to date compared with the same period last year.
TD Cowen said that its latest proprietary survey data indicated that Chewy sales were up sequentially in the fourth quarter as 22.2% of pet-owning households in the United States had purchased something from the company in the past 30 days, up from 21.0% in the fourth quarter in 2024 and 22.1% in the third quarter of 2025.
Analysts added that Chewy Autoship usage remains robust. This is a subscription service that allows pet owners to order recurring deliveries of pet food and supplies sometimes at a discount. As seen above its popularity has grown steadily over recent years.
Pets Take the Prize
The spending comes despite consumer confidence being at historically low levels with the University of Michigan’s Index of Consumer Sentiment recently posting a reading of 50.3 for November, down around 30% from the same time in 2024.
The current conditions index slid to 52.3, a drop of nearly 11% from October and the lowest in its history going back to 1951.
Americans are concerned about the impact of the lengthy U.S. government shutdown on the economy and their job prospects.
However, this does not seem to have deterred them from spending on their pets. This should keep the Chewy stock price wagging its tail as we enter the holiday season. Even pets get their own Christmas stockings these days.
Is CHWY a Good Stock to Buy Now?
On TipRanks, CHWY has a Moderate Buy consensus based on 17 Buy and 6 Hold ratings. Its highest price target is $54. CHWY stock’s consensus price target is $46.39, implying a 38.89% upside.
