E-commerce stocks face mounting pressure as tariffs and supply chain disruptions reshape the market. With tariffs affecting both domestic and international companies, many investors are closely examining which players can withstand these headwinds. Giants like Amazon (AMZN) and Chinese powerhouses such as Temu and SHEIN are grappling with the fallout from trade policy shifts, including the revocation of de minimis exemptions.

Chewy (CHWY), an online pet retailer, is emerging as a tariff-resistant investment that analysts are increasingly highlighting. Unlike many of its competitors, Chewy’s operational framework and domestic focus allow it to largely avoid the negative impacts of U.S. tariffs and new de minimis rules. This stability is especially appealing in an industry plagued by margin compression and rising consumer costs.

With a robust supply chain, Chewy is well-positioned to deliver consistent performance, making it a compelling option for investors seeking to navigate the complex world of modern e-commerce while mitigating trade-related risks.

About Chewy Stock

Founded in 2011, Chewy (CHWY) is an American online pet retailer that offers a broad range of pet products, including dry and wet food, treats, toys, supplements, and medications for dogs, cats, fish, birds, small pets, horses, and reptiles. Chewy delivers its extensive product lineup and pet services through its website and mobile app, catering to the diverse needs of pet owners nationwide.

Valued at around $15.8 billion by market cap, shares of Chewy have been on a bull ride over the past 52 weeks, gaining more than 120% thanks to a blend of strong financial performance and favorable market trends in pet care.

Following the price appreciation, Chewy is now trading at premium levels of 32 times forward earnings, higher than the industry average of 17.7x. At this elevated valuation, the pet company must grow rapidly to justify its premium status, a goal that appears attainable as the retailer continues its rebound.

Chewy Posted Strong Q3 Results

On Dec. 3, Chewy reported its Q3 earnings, which surpassed revenue estimates but fell short on earnings. The retailer posted net sales of $2.88 billion, reflecting a 4.8% improvement from the year-ago quarter, driven by strong auto-ship sales that surged nearly 9% to $2.4 billion, comprising 80% of total revenue.

On an adjusted basis, the company earned $0.20 per share, marking a 33% increase from the prior year’s $0.14. Gross margins also improved by 80 basis points to 29.3%.

Chewy’s balance sheet remains strong. The company generated $151 million in free cash flow this quarter, up from $91 million in Q2, and closed with roughly $507 million in cash and marketable securities while carrying no debt.

Looking ahead, Chewy has raised its guidance for Q4 revenue to a 13% increase and now anticipates full-year sales between $11.79 billion and $11.81 billion. 

What Do Analysts Say About Chewy Stock?

After staying under the radar for a couple of years, Wall Street analysts are finally taking notice of this pet retailer. Earlier this week, Mizuho analysts maintained their “Outperform” rating on Chewy, setting a price target of $42. The firm also cited the potential for Chewy’s app to double revenue penetration from 20% over two years, noting that app users spend 25%–35% more and drive higher-margin healthcare sales. Promotional initiatives and AI-driven personalization are expected to enhance customer acquisition efficiency and profitability, reinforcing its competitive market position.

Similarly, Guggenheim analysts raised their price target for Chewy stock from $36 to $42 while keeping a “Buy” rating. Citing Chewy’s growth prospects, the firm predicts that the pet food market will gradually return to normal pricing by 2025, a change seen as good news for Chewy’s financial health.

Overall, Chewy stock carries a consensus “Strong Buy” rating from 27 analysts covering the stock. Currently, the stock is near the mean price target of $38.09. However, its Street-high target of $47 implies an upside premium of more than 27%.