We recently published a list of 10 Stocks That Analysts Are Talking About. In this article, we are going to take a look at where Chewy, Inc. (NYSE:CHWY) stands against other stocks that analysts are talking about.

Like any other informed investor, we are always on the hunt for stocks that analysts are talking about. Analysts use their in-depth research expertise, industry knowledge, and industry connections to figure out how well companies are doing every quarter.

Once they stumble upon something that could change the course of that company’s stock, they come out with analyst updates. These are usually in the form of an upgrade or downgrade, or simply an update on a previously assigned rating.

For retail investors, going through these reports saves a lot of time. This is why we came up with 10 stocks that analysts are talking about this week. To come up with the list of 10 stocks that analysts are talking about, we considered companies that received an analyst upgrade or coverage in the last 5 days.

A close-up shot of a store shelf stocked with pet food and supplies.

Chewy, Inc. (NYSE:CHWY)

Chewy, Inc. (NYSE:CHWY) is a purely online retailer of pet food & treats, pet health products, pet medications & supplies, and also offers pet services for horses, dogs, birds, reptiles, and other pets. Argus just upgraded CHWY from Hold to Buy, assigning a target price of $42.

Chewy, Inc. (NYSE:CHWY) has done incredibly well since its IPO in 2019. The company has an attractive business model which gives it its inherent value. For example, 85% of the company’s revenue comes from pet products and services that are considered non-discretionary. Similarly, 80% of its revenue is in the form of recurring sales, which provides it with a healthy cash flow and a predictable income.

The recent initiative of the company to launch vet care centers is also a high-margin business segment and should strengthen the company’s financial health. Shares of Chewy, Inc. (NYSE:CHWY) are already up over 13% so far this year and have nearly doubled in a year.

Overall, CHWY ranks 2nd on our list of stocks that analysts are talking about. While we acknowledge the potential of CHWY as a leading AI 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 as promising as CHWY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.