Good tactical buy right now for an oversold bounce: RSI_6 is extremely washed out (9.5) and price is sitting on/just below first support (27.36) in pre-market.
Fundamentals and Street stance are supportive (Q3 growth + big EPS inflection; multiple Buy/Outperform ratings with targets far above ~$27).
Options positioning is net risk-on (put/call ratios < 1) despite elevated IV, suggesting traders are leaning bullish into a potential rebound.
Main risk to the call is the still-bearish trend (negative/expanding MACD and bearish moving-average stack) plus hedge funds selling—so this is a bounce/mean-reversion buy, not a confirmed trend reversal buy.
Technical Analysis
Trend is still bearish: SMA_200 > SMA_20 > SMA_5 and MACD histogram is negative (-0.498) and worsening.
Extremely oversold: RSI_6 at ~9.52 typically aligns with short-term exhaustion selling and rebound setups.
Key levels: Pivot ~30.28 (reclaiming this would improve the chart), Resistance R1 ~33.20; Support S1 ~27.36 (price ~26.9 pre-market is slightly below), next Support S2 ~25.55.
Pattern-based forward look provided: modest upside next day (+0.62%), but slightly negative bias over 1 week (-0.45%) and 1 month (-2.56%), reinforcing that this is best viewed as a near-term bounce setup rather than a sustained uptrend signal.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment skew: Put/Call ratios below 1.0 (OI 0.79; Volume 0.54) = more calls than puts, generally bullish positioning.
Volatility is rich: 30D IV ~62.98 vs historical vol ~27.56; IV percentile ~88.4 = market pricing a big move (often around catalysts or after sharp drops).
Activity note: today’s volume vs 30D average shows elevated participation (35.66), aligning with “capitulation/inflection” type days where reversals can start.
Technical Summary
Sell
8
Buy
4
Positive Catalysts
showed strong YoY growth and major profitability inflection (revenue +8.3%, EPS +1300%, net income +1405.6%).
Hedge fund flow is negative: “Hedge Funds are Selling,” with selling amount up ~382.78% QoQ.
Competitive/valuation pushback in news: comparisons vs Walmart emphasize Chewy’s lower net margins (~2%) and questions around valuation in some commentary.
Elevated implied volatility suggests the market expects sharp moves (good for a bounce, but also reflects uncertainty).
Profitability inflection: Net income $59.2M, +1405.60% YoY; EPS $0.14, +1300.00% YoY.
Gross margin: 29.78%, +1.53% YoY, consistent with the margin-expansion narrative (ads/membership/private label).
Takeaway: growth is not explosive, but the earnings/margin trajectory is improving meaningfully—supportive for a rebound from oversold levels.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: predominantly bullish with targets generally raised or maintained high after Q3; one modest trim (Wolfe to $44 from $46) but still Outperform.
Notable calls:
Mizuho named CHWY its overall Top Pick (sector note context).
TD Cowen reiterated Buy and nudged PT higher to $48 (after Q3).
Barclays reiterated Overweight and raised PT to $52.
Cons: competitive pressure and profitability still not best-in-class; some skepticism on valuation/quality vs larger retailers.
Politicians/influential figures: no recent Congress trading data available; insiders are neutral; hedge funds have been net sellers.
Wall Street analysts forecast CHWY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHWY is 47.06 USD with a low forecast of 42 USD and a high forecast of 52 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
Wall Street analysts forecast CHWY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHWY is 47.06 USD with a low forecast of 42 USD and a high forecast of 52 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 26.570
Low
42
Averages
47.06
High
52
Current: 26.570
Low
42
Averages
47.06
High
52
Mizuho
Neutral
maintain
$165 -> $185
AI Analysis
2026-01-05
Reason
Mizuho
Price Target
$165 -> $185
AI Analysis
2026-01-05
maintain
Neutral
Reason
Mizuho raised the firm's price target on Five Below (FIVE) to $185 from $165 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the retailing broadlines and hardlines consumer internet space as part of its 2026 outlook. The group enters 2026 with "signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact," the analyst tells investors in a research note. Mizuho installed Chewy (CHWY) as its overall Top Pick, and dropped Walmart (WMT), Lowe's (LOW), and O'Reilly (ORLY) off of its Top Picks list.
Mizuho
David Bellinger
Outperform
maintain
$115 -> $125
2026-01-05
Reason
Mizuho
David Bellinger
Price Target
$115 -> $125
2026-01-05
maintain
Outperform
Reason
Mizuho analyst David Bellinger raised the firm's price target on Walmart to $125 from $115 and keeps an Outperform rating on the shares. The firm adjusted ratings and price targets in the retailing broadlines and hardlines consumer internet space as part of its 2026 outlook. The group enters 2026 with "signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact," the analyst tells investors in a research note. Mizuho installed Chewy (CHWY) as its overall Top Pick, and dropped Walmart (WMT), Lowe's (LOW), and O'Reilly (ORLY) off of its Top Picks list.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CHWY
