8 Best Pet Stocks to Buy According to Billionaires

3. Chewy, Inc. (NYSE:CHWY)

Number of Billionaire Investors: 11

Number of Hedge Fund Holders: 48

Chewy, Inc. (NYSE:CHWY) is an American pet company that operates as an online retailer of pet food and treats, pet supplies, pet care, and other pet-related products. The company serves the contiguous United States and has expanded to Southern Ontario in Canada as well. Chewy, Inc. (NYSE:CHWY) ranks among the best pet stocks to buy.

On March 20, TD Cowen analyst William Kerr reiterated a “Buy” rating for Chewy, Inc. (NYSE:CHWY) with a price target of $45. The firm’s analyst highlighted the company’s strong financial outlook ahead of its Q4 2024 earnings. Kerr expects Chewy, Inc. (NYSE:CHWY) to report Q4 2024 revenues of approximately $3.2 billion, which would represent a 13% year-over-year growth. This growth is expected to be driven by strong Autoship sales. Through the Autoship subscription program, Chewy, Inc. (NYSE:CHWY) allows customers to set up automatic recurring orders for their preferred pet supplies, which ensures recurring sales. Kerr also predicts an improvement in gross margin to 29.3%, up from 28.2% in the fourth quarter of the previous year, supported by advertising growth. These figures align with market expectations and the higher end of the company’s guidance.