CHWY: Adding Chewy to Investing Ideas (Long Side)

05/04/20 10:40AM EDT

Hedgeye CEO Keith McCullough is adding Chewy (CHWY) to the long side of Investing Ideas. Below is a brief note.

Gold and groceries worked out nicely for us last week. Now we have to feed our pets!

I've been waiting for Chewy (CHWY) to correct since Retail analyst Brian McGough went bullish on it... and it's for sale, down over -3% here on the open today.

Here's a summary excerpt from Brian's recent Institutional Research note:

We're also adding Chewy to our Long Bias list. We’ve been positively predisposed to the name since the June IPO, but the current environment is about as good as it can get for CHWY. People won’t stop feeding their pets, but are extremely averse to trudging out the pet store to buy food and supplies. Enter Chewy. It sells a better basket of brands than Amazon, and service is arguably better. 

Buy on red,

KM

 

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