10 Stocks with Potential to Explode in 2026

7. Chewy, Inc. (NYSE:CHWY)

Average Upside Potential: ~70.2%

Forward EPS Long-term Growth (3-5 Year CAGR): ~32.0%

Number of Hedge Fund Holders: 53

Chewy, Inc. (NYSE:CHWY) is one of the Stocks with Potential to Explode in 2026. On June 12, Goldman Sachs analyst Eric Sheridan reduced its price objective on the company’s stock to $34 from $46 and maintained a “Buy” rating. According to the analyst, the company released its Q1 results, wherein it highlighted stronger-than-anticipated EBITDA margins, thanks to the ads, mix, and efficiency gains, along with investment towards healthcare and loyalty programs, increased AI-driven cost savings, and ongoing capital returns with the help of share repurchases and new financing capacity.

To provide a brief background, Chewy, Inc. (NYSE:CHWY) reported results for Q1 2026, outperforming the pet category, while also enhancing profitability and FCF. The company is confident in its capability to enhance its market share and provide profitable growth. For FY 2026, Chewy, Inc. (NYSE:CHWY) expects net sales of between $13.40 billion – $13.55 billion, and an adjusted EBITDA margin of 6.6% – 6.8%.

Chewy, Inc. (NYSE:CHWY) is engaged in the e-commerce business, offering pet food and treats, pet supplies and pet medications, other pet-health products, as well as pet services.