Chewy (NYSE: CHWY) is an online pet product and services retailer. It was already achieving years of rapid revenue growth, and when the coronavirus pandemic pushed consumers toward e-commerce, its sales growth accelerated. The number of COVID-19 cases is thankfully trending down in recent weeks, which can partly explain why shares of Chewy are also down over 20% in the past month. As people become more comfortable leaving their homes and returning to stores, sales at the online pet store could suffer.
Still, spending on Chewy.com has been increasing by at least 40% year over year in all but one quarter since the start of fiscal 2019 (not to mention the seven-year streak from fiscal 2011 through fiscal 2018) — highlighting that a return to pre-pandemic conditions is no reason to shy away from this growth stock. In fact, if you have $1,000 that you’re not going to need for several years, here are three reasons you should buy shares of Chewy stock.