5 Best Retail Stocks with Huge Upside Potential

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1. Chewy Inc. (NYSE:CHWY)

Chewy Inc. (NYSE:CHWY) is one of the 10 best retail stocks with huge upside potential.

On February 24, Chewy Inc. (NYSE:CHWY) reaffirmed its FY25 adjusted EBITDA margin guidance of 5.6%-5.7%, emphasizing strong business momentum. The company remains on track towards its long-term adjusted EBITDA target of 10%, stating:

“As discussed on our December 10, 2025 earnings call, Chewy’s (CHWY) long-term plan remains intact, our business momentum remains strong, and we remain firmly on track toward the long-term margin profile of 10% Adjusted EBITDA that we outlined at Investor Day. As such, we are reaffirming our guidance for fiscal year 2025 and look forward to a successful fiscal year 2026.”

On February 19, Raymond James upgraded the rating on Chewy Inc. (NYSE:CHWY) from Market Perform to Outperform. The firm estimated a $28 price target, offering almost 10% upside at the current level.

The firm identifies an attractive risk/reward profile following a 33% decline in share price following the third-quarter report. It highlighted a favorable setup driven by low market expectations, and the company’s sales and margin expansion opportunities projected for 2026.

Chewy Inc. (NYSE:CHWY) is an e-commerce retail business that focuses on pet-health products and services. It offers supplies, medications, treats, and food for pets through a popular “Autoship” service, which generates 70% of business revenues. It offers products from over 3,500 brands through a high-volume automated distribution network.

While we acknowledge the potential of CHWY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CHWY and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.

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