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.
While we acknowledge the risk and potential of CHWY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CHWY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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