15 Best Cyclical Stocks to Buy Now

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6. Chewy, Inc. (NYSE:CHWY)

Number of Hedge Fund Holders: 55

Chewy, Inc. (NYSE:CHWY) ranks among the best cyclical stocks to buy now. On June 25, BofA maintained a Buy rating on Chewy, Inc. (NYSE:CHWY) with a $49 price target as the company gains market share in the pet retail industry and remains in a strong position to benefit from the continued trend toward online shopping.

Spending data from BofA’s combined credit and debit card metrics revealed that US pet retail sales stabilized in May, with year-over-year trends remaining level after declining 4% in the first quarter. The bank claimed that Chewy’s performance was exceptional in comparison to its peers, citing third-party statistics that demonstrated increased traffic and sales in May. While rival Petco saw a 2% decline in revenue, the company’s revenue increased by 8% in the first quarter.

Given that early second-quarter data is exceeding projections, BofA’s 8% growth prediction for Chewy may see some upside. The bank’s sales predictions for Chewy, Inc. (NYSE:CHWY) and its aggregate card data have become closer, indicating a greater fit with reported outcomes.

Chewy, Inc. (NYSE:CHWY) is an American online pet shop that offers services, pharmaceuticals, supplies, and pet food on its website and mobile app.

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