Chewy (CHWY) is raising its Chewy+ membership fee from $49 to $79. This decision reflects management’s confidence in the subscription service and suggests potential for higher revenue as 2026 approaches.

See our latest analysis for Chewy.

Chewy’s recent Chewy+ fee hike follows solid long-term performance, with a 1-year total shareholder return of nearly 10%. Shares declined over the past month, but resilient annual returns and upbeat analyst sentiment suggest investors are warming to its long-term potential.

If you’re looking for more companies making bold, growth-focused moves, now’s a great time to discover fast growing stocks with high insider ownership

With analysts raising their targets and bullish sentiment on display, the real question is whether Chewy’s recent advances leave room for more upside or if the stock’s future growth is already fully priced in.

According to the most widely followed narrative, Chewy’s fair value is set significantly above its last close of $33.70. This dramatic gap signals that fresh strategic moves could be paving the way for material upside.

\\"Chewy's strategic expansions, such as opening new Chewy Vet Care Clinics, are expected to further penetrate the $25 billion vet services market, likely increasing revenue and active customer engagement in 2025 and beyond. The migration to a 1P ad platform allows for enhanced advertising capabilities, including off-site ads and new content formats like video, which could grow the sponsored ads business up to 3% of total enterprise net sales, positively impacting gross margins.\\"

Read the complete narrative.

Want the story behind this bullish target? The narrative’s valuation is built on bold financial leaps, rapid category expansion, and a crucial profit assumption that could turn conventional retail wisdom on its head. What metrics are fueling the optimism? Dive in to see the key numbers that may surprise you.

Result: Fair Value of $45.45 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, modest customer growth and Chewy's heavy reliance on its Autoship program remain key risks. These factors could challenge ambitious long-term forecasts.

Find out about the key risks to this Chewy narrative.

While our earlier analysis points to Chewy being undervalued, comparing its price-to-earnings ratio to industry standards tells a different story. Chewy trades at 92.5x, which is far higher than both its peers (22.8x) and the broader Specialty Retail average (18.4x). The fair ratio suggests it could trade closer to 26.8x. Such a wide premium raises questions about whether investors are taking on added risk or are betting heavily on future growth. Which approach do you think tells the full story?

See what the numbers say about this price — find out in our valuation breakdown.

If you see things differently or want to dig deeper into the numbers yourself, you can craft your own Chewy narrative in just a few minutes. Do it your way.

A great starting point for your Chewy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Smart investors act before the crowd does. Get ahead by using the Simply Wall Street Screener to find stocks positioned for the next big opportunity.

Tap into the explosive potential in artificial intelligence by researching these 24 AI penny stocks, where innovation is driving new winners every day.

Secure higher yields now and strengthen your income stream by checking out 3%;elm:context_link;itc:0;sec:content-canvas\\" class=\\"link \\">these 16 dividend stocks with yields > 3% with payouts over 3%.

Capitalize on market inefficiencies by investigating these 870 undervalued stocks based on cash flows, which is packed with quality names currently overlooked by the market.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CHWY.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com