Chewy is an American retail e-commerce business for all sorts of pet-related products. The company is owned by PetSmart, a huge American chain of more than 1600 pet superstores, and is one of the fastest-growing e-commerce companies in the US. Since it went public in 2019, Chewy shares have returned 292%, and the year-to-date return stands at 121.52% as of November.
So, if you are thinking of buying shares of Chewy, this guide can answer many of your questions. We’ll analyze Chewy’s share price performance since its IPO, and find out about the company’s financial positions. We’ll also suggest UK stockbrokers that offer you to buy shares of Chewy, and show you the process of buying Chewy shares online in the UK.
- 1 Step 1: Find a UK Stock Broker That Offers Chewy Shares
- 2 Step 2: Research Chewy Shares
- 3 How Much Are Chewy Shares Worth? Chewy Share Price History
- 4 Chewy Shares Dividend Information
- 5 Should I Buy Chewy Shares?
- 6 Step 3: Open an Account and Deposit Funds
- 7 Step 4: Buy Chewy Shares
- 8 Chewy Shares: Buy or Sell?
- 9 The Verdict
- 10 eToro – Buy Chewy Shares With No Commission
- 11 FAQs
Chewy Inc. shares trade on the New York Stock Exchange (not on NASDAQ), meaning you’ll have to find a UK stockbroker that allows you to trade US shares. While finding a broker in the UK that offers share trading on US shares is not necessarily a difficult task, you’ll have to take into consideration other factors such as your trading strategy, and the trading fees the broker charge. For example, if you are an active trader, you will find yourself paying high fees in the long run. As such, you might want to consider a CFD broker that enables you to speculate on the price of financial assets like Chewy without owning the assets.
With all that in mind, let’s take a look at some of our recommended brokers you can use to buy Chewy shares in the UK:
1. eToro – Social Trading Broker with No Commission
eToro is a social trading platform that offers investors access to a wide range of assets including shares, indices, commodities, currency pairs, ETFs, and cryptocurrencies. As this includes US shares, eToro offers investors to buy and short sell shares of Chewy. This broker is actually one of the most well-known CFD brokers in the industry, with more than 12 million users on its platform.
eToro is also one of the few online stockbrokers in the UK that does not charge any trading commissions. This means you’ll only have to pay the buy and sell spread. Moreover, you’ll be able to trade with a leverage ratio of 5:1 on shares like Amazon, Netflix, and Chewy. Another key element of eToro is the option to short sell stocks, which gives you the freedom to speculate on the price of an asset in both directions.
Best of all, eToro supports an array of social trading tools, which really sets this broker apart from all competitors in the industry. As such, eToro allows you to engage with other investors and copy trades of other investors by using a tool called CopyTrade. When using the CopyTrade feature, you basically can automate your trading and mimic the trading activity of another top trader.
If you have concerns about the protection of your funds, eToro is heavily regulated by various jurisdictions, including the Financial Conduct Authority in the UK.
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Plus – UK Share Dealing Platform with Tight Spreads
Plus500 is another popular UK CFD broker that offers trading on more than 2000 assets. On this platform, you will have access to not only shares from the US, UK and Europe, but also FX currency pairs, commodities, indices, crypto coins, and ETFs. This broker especially suitable for traders who want to engage in active trading due to its competitive spreads and low non-trading fees.
Going into the details, Plus500 charges a spread of 0.42 pips on Chewy shares and maintains overnight funding of 0.028%. Much like eToro, you will be able to trade US shares with leverage of 5:1 and short sell stocks without strict margin restrictions. One of the key points of Plus500 is the user-friendly trading platform it offers and the range of trading features that help you get useful trading insights. As such, you will have access to market trading sentiment on any instrument and a price alert service that notifies you of any change in the price of the asset you wish to trade on.
When it comes to regulation, Plus500 is regulated and licensed by the FCA. To open an account, you will need to fund your account with at least £100.
- A commission-free trading account
- Tight spreads and low fees
- A leverage of 5:1 on shares
- User friendly trading platform, available on web browsers and mobile phones
- Plenty of features including risk management tool, price alerts and trader’s sentiment tool
- Regulated in the UK by the FCA
- Not a social trading platform
- Offers to trade on CFDs only
76.4% of retail investor accounts lose money when trading CFDs with this provider.
Even though Chewy shares are on an amazing run since the company went public in 2019, it’s important that you make good research before making an investment. Despite the recent positive momentum, the stock market is currently facing uncertainty due to the Covid-19 pandemic and the change of guard in the United States.
With that in mind, let’s take a close look at the company’s share price history, future outlook, and Wall Street analysts’ forecast on Chewy shares.
Chewy was founded in 2011 as an e-Commerce retailer platform of pet food and pet-related products. The company has dual headquarters in Dania Beach, Florida, and Boston and has around 12,000 employees. Just one year following its foundation, Chewy has generated a revenue of $26m, but quite clearly, in 2014-15, the Company has made its mark in the public as sales soared from $205m to $423m. 2017 was a big year for Chewy – First, it has reported revenues of around $2 billion, and then, in May 2017, Chewy was acquired by PetSmart. At the time, this was the largest-ever acquisition deal of any e-Commerce business.
In the following years, Chewy sales and revenues have continued to grow steadily with revenues of $3.5bn in 2018 and $4.85bn in 2019. Eventually, the company went public on June 14, 2019, at a price of $22 per share. One of the key reasons for Chewy’s exponential growth was the wide selection of pet products, the 24/7 access for its e-commerce platform, and the quick shipping of online orders. From the IPO in May to the end of 2019, the Chewy stock was trading at relatively low levels, ending the year at around 29$ per share.
But so far in 2020, Chewy share soared by around 136% as of early November. The increase in the share price can be largely attributed to the boost of stay-at-home orders caused by the Covid-19 pandemic. In the first quarter of the year, Chewy reported an increase of 46% in sales, and in the second quarter, Chewy has announced net sales $1.70bn, an increase of 47% from the previous year.
Chewy Share Fundamentals – Market Cap, P/E Ratio and EPS
At the time of writing, Chewy has a market capitalisation of $28.7bn. The company’s PE ratio is not yet available as the company has never reported profits. Chewy has an outstanding EPS growth of 61% after it has reported a $-0.08 EPS for the second quarter of the year. ,
As often happens with new companies or tech-related companies like Netflix, Amazon, and Facebook, Chewy does currently pay dividends. This does not come as a surprise as Chewy most likely opts for growth and expansion, particularly given the fact that the young company has never been profitable.
While Chewy share seems to be one of the best shares to buy for the long term, it is crucial to take into consideration that Chewy has seen a huge boost in sales due to the coronavirus pandemic. But even though the so-called “Amazon of Pets” might be overvalued in the short term, there are still many reasons why analysts believe it is one of the most fascinating stocks in the market right now.
Chewy Sees a Surge in Demand due to the Covid-19 Pandemic
The coronavirus crisis has increased the share of e-commerce in total retail sales and some say it will have a huge impact on the way people shop in the post-Covid-19 era. Chewy is among the four biggest e-commerce platforms in the pet stores industry, along with its parent company PetSmart, Petco, and Amazon. Since the beginning of the year, Chewy has added 4.6 million new customers, a remarkable increase of 37.9% from the previous year. As a result, the value of Chewy share has more than doubled since the pandemic started as investors realize that customers turning to online services.
The Biggest Online Pet Foods and Products
According to Petfoodindustry.com, Chewy has a market share of 13% with 16.6 million customers, slightly behind Amazon that is still the most dominant online platform for pet food and supplies. However, when looking at the most visited pet food supplies websites in the world (according to SimilarWeb), Chewy ranks first with 40.27 million visits per month. Another key point of Chewy is the shipping times and terms – Not only the shipping is free on any order over $49, but the online pet retailer provides customers’ orders within 1 to 3 days.
Taking the above into consideration, it seems that Chewy has positive future prospects as a dominant pet supplies e-commerce platform.
There’s a Chewy Online Pharmacy and Telehealth Services
In addition to being an eCommerce et retailer, Chewy has entered the pet medicine market in 2018 with its own online pet pharmacy. This makes Chewy, which is a licensed Pharmacy, an all-in-one platform for all pet owners’ needs. So far, the Chewy pharmacy has been performing very well, especially during the pandemic crisis.
Additionally, as Telehealth services have grown in popularity during the Covid-19 pandemic, Chewy has recently announced a new service called ‘Connect with a Vet’. This is essentially an online feature that enables users to connect with veterinarians.
Step 3: Open an Account and Deposit Funds
After the Chewy research part, you will be able to buy shares of the company. But before you can buy US shares, you first need to open an online trading account with a trusted broker that offers Chewy share trading. As such, we are now going to show the process of opening an account and buying shares with eToro.
To get started, visit eToro’s homepage and start the sign-up process by clicking on the Join Now button. Then, you will be asked to provide personal information and verify your identity by uploading a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill.
Once you have completed the registration process, you can add funds to your account. eToro requires a minimum of around £140 for investors in the UK, which you can fund by using one of the provided payment methods below:
- Debit Card
- Credit Card
- UK Bank Transfer
As soon as your eToro account has been funded, you can then buy Chewy shares. First, go to eToro’s trading dashboard and type in Chewy or CHWY in the search bar.
Once you click on the first result that pops up in the drop-down menu, you will be channeled to Chewy’s instrument page. On this page, you can analyze the stock and view market news. Whenever you are ready to place a buying order, simply click on the Buy button.
Next, you will be presented with an order form. Enter the amount you wish to invest in Chewy and then click on the Place Order button. Take note that eToro allows fractional trading so you will be able to make an investment with just £40.
Overall, Chewy has a lot of room to keep growing in the upcoming years. Chewy is currently dominating the online pet industry, particularly during times of the Covid-19 restrictions. Looking ahead, there’s a good reason to be optimistic about Chewy growth. Unlike Amazon and other online e-commerce retailers, Chewy focuses on the pet market only. This will enable the company to get even closer to its clients and understand the needs of pet owners, as happened in the case of its online pharmacy and the brilliant Telehealth service it has recently launched.
Clearly, when it comes to the share price, there’s a question of whether the Chewy stock is currently overvalued. After all, the share has a year-to-date return of more than 120%. Nevertheless, the majority of Wall Street analysts see higher prices for Chewy. JPMorgan, for example, raised the price target to $72 from $70, and Wedbush still holds a price target of $75. To that extent, Chewy shares appear to be a good long term investment opportunity.
All in all, Chewy is a great company with huge growth potential over the next years. The company is likely to reach profitability in the next year or two, and it has been a favorite stock for many Wall Street analysts since the pandemic has emerged. At the time of writing, the Chewy stock is trading at all-time highs and is predicted to continue rising in the near future.
So, if you ready to buy Chewy shares, simply click the link below to get started!
67% of retail investor accounts lose money when trading CFDs with this provider.
Who is the chief executive of Chewy?
Sumit Singh is the CEO of Chewy since March 2018. Under Sumit's leadership, Chewy has managed to raise $1bn in the stock sale in 2019. Singh also owns 79,343 shares of Chewy.
What stock exchange is Chewy listed on?
Chewy Inc is listed on the New York Stock Exchange (NYSE) under the symbol CHWY.
How do I buy shares in Chewy?
Can I invest in Chewy via an ISA or SIPP?
Yes, you can. To do that, however, you'll have to find a brokerage firm that enables you to purchase individual US shares on an ISA or SIPP account.