Key Points
Chewy has some deep-pocketed competition.
But it's been growing despite them.
Its customers are very loyal, too.
If you're looking to add a potentially powerful grower to your long-term stock portfolio, I've got a stock, recently trading for $24.23 per share, to suggest: Chewy(NYSE: CHWY), the retailer specializing in products and services for pets.
Image source: Getty Images.
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If you look at its recent stock performance, though, it's not encouraging:
Time Period | Average Annual Return |
|---|---|
Past 1 year | (35.31%) |
Past 3 years | (18.64%) |
Past 5 years | (27.19%) |
Source: Data from Morningstar.com as of Feb. 12, 2026.
Yikes, right? But remember -- as investors, we need to be looking forward, not back. We need to be thinking about how the company will perform from here on out. After all, if it sported a track record of double-digit gains, we couldn't be sure that they would continue.
Here's how Chewy (and, most likely, your other investments) could make you a millionaire:
Growing at 8% For | $12,000 Invested Annually |
|---|---|
5 years | $70,399 |
10 years | $173,839 |
15 years | $325,825 |
20 years | $549,144 |
25 years | $877,271 |
30 years | $1,359,399 |
35 years | $2,067,802 |
40 years | $3,108,678 |
Calculations by author via Investor.gov.
Here's why Chewy seems a promising proposition:
- It's growing: Its third-quarter results featured revenue up 8.3% year over year and gross profit margins rising by half a percentage point.
- It's finding great success with its Autoship service, which results in fairly reliable revenue and recently accounted for a whopping 84% of revenue!
- Net sales per active customer have been inching up in recent years.
- Its stock seems reasonably priced, too, with a recent forward-looking price-to-earnings (P/E) ratio of 24 well below its five-year average of 73, and a recent price-to-sales ratio of 0.82, well below its five-year average of 1.35.
It does face risks, such as competition from Amazon and Walmart, but it's grown despite them. And its customers are especially loyal to Chewy.
I wouldn't count on Chewy alone to carry you to millionaire status, but it could certainly be one of the growth stocks and/or growth funds that does.
Should you buy stock in Chewy right now?
Before you buy stock in Chewy, consider this:
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Selena Maranjian has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Chewy, and Walmart. The Motley Fool has a disclosure policy.
