Chewy Stock Is Struggling Now -- but Where Will It Be in 5 Years?

By Will Healy – Apr 1, 2026 at 4:12AM ESTKey PointsChewy stood out over the likes of Amazon with competitive pricing and superior customer service.Net sales for Chewy increased even as the stock price dropped.Chewy (CHWY +4.33%) stock has endured years of struggle after it peaked in 2021 during the later stages of the pandemic. Since achieving that all-time high, the stock is down by about 78%. Nonetheless, considering the state of the company, the stock's direction is likely on track for a reversal over the next five years. Here's why it is probably time to turn bullish on the specialty retail stock. Image source: The Motley Fool. What investors need to know about Chewy The most surprising thing about Chewy is that its financial performance bears no resemblance to the stock price activity over the last few years. When the stock peaked in 2021, pet owners tended to buy more of their pet-related products online. This played into Chewy's strengths by keeping its prices competitive while offering a high level of service not found at more transaction-focused e-commerce companies such as Amazon. Chewy also stood out with an autoship plan that automatically orders products after a given period. Today, autoship makes up more than 83% of its net sales. Nonetheless, the stock's popularity dropped right as the company had turned profitable in 2022, so its P/E ratio was not a meaningful valuation measure. Moreover, its price-to-sales (P/S) ratio of 7 was far higher than that of Amazon at that time. Hence, as shoppers returned to offline shopping, investors began to sour on Chewy stock, and it has traded in a range since 2022. ExpandNYSE: CHWYChewyToday's Change(4.33%) $1.12Current Price$27.00Key Data PointsMarket Cap$11BDay's Range$26.31 - $27.0752wk Range$22.74 - $48.62Volume945Avg Vol8.4MGross Margin28.77% Still, even though growth rates slowed, Chewy continued to increase sales levels as it turned profitable. It also added new lines of business, such as a pet pharmacy, telehealth services, and a Chewy+ subscription service that offers free shipping and other benefits. Additionally, Chewy offers in-person vet care in five states. Though it operates only 18 clinics for now, it holds a massive amount of potential for expansion. These offerings and the lower stock price have changed the game for Chewy stock. Its 50 P/E ratio may seem high, but it compares well to Amazon during its e-commerce growth phase. Also, Chewy's P/S ratio is down to 0.9, dramatically changing its value proposition. Looking forward, analysts forecast 26% profit growth this year and 24% in 2027. As more investors recognize this growth and Chewy's low valuation, they will likely begin to buy more of its stock. Buy Chewy stock Time will tell whether Chewy is a once-in-a-lifetime buying opportunity. However, over the next five years, Chewy stock appears on track to reverse some or all of the declines over the previous five. Despite the slowdown that came due to the end of the pandemic, Chewy never stopped growing its sales levels, proving it could compete with Amazon. Also, Chewy's added services gave pet owners more reasons to buy from the company. Thus, amid a low valuation and annual profit growth that is well into the double digits, Chewy stock is probably setting itself up for a dramatic rebound.Read NextMar 30, 2026 •By David Jagielski, CPADown Around 47% From Its High, Should You Buy Chewy Stock Right Now?Mar 29, 2026 •By Parkev Tatevosian, CFAThe Humanization of Pets Makes This Undervalued Stock Even More AttractiveMar 29, 2026 •By Geoffrey SeilerChewy Shares Climb on Upbeat Outlook, but It's Not Too Late to Buy the StockMar 25, 2026 •By Jeremy BowmanChewy Just Popped. Is the Pet Stock a Buy Now?Mar 25, 2026 •By Joe TenebrusoWhy Chewy Stock Rallied TodayMar 24, 2026 •By Adria CiminoChewy Is Down 30% in 2026. Is This a Once-in-a-Lifetime Buying Opportunity?About the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedChewyNYSE: CHWY$27.00(+4.33%)+$1.12AmazonNASDAQ: AMZN$208.01(+3.51%)+$7.06*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.