Despite posting stronger-than-expected fourth-quarter results, Chewy Inc. (NYSE:CHWY) is facing a severe technical downturn, with its stock momentum landing in the lowest decile.
Bearish Technicals And Price Trends Drag Down Averages
The pet retailer’s Benzinga Edge Stock Rankings‘ momentum score fell week-on-week, currently sitting deep in the red at an 8.84th percentile.
This momentum score, which evaluates a stock’s relative strength based on price movement and volatility across multiple timeframes compared to its peers, highlights a stark contrast with the company’s fundamental business performance.
While Chewy is currently displaying a positive short-term price trend over the last couple of months, both its medium-term and long-term price trends remain decidedly negative.
Solid Q4 Growth Overshadowed By Target Cuts
The sinking momentum occurs even though Chewy reported fourth-quarter adjusted earnings of 27 cents per share, which comfortably beat the consensus estimate of 20 cents.
The company boasts an exceptional Benzinga Edge growth ranking of 98.19, reflecting robust historical expansion in earnings and revenue. Additionally, management anticipates significant AI-related efficiency benefits in 2026 that could expand margins.
However, Wall Street analysts remain cautious despite the resilient outlook. Following the earnings release, BNP Paribas analyst Chris Bottiglieri maintained a Neutral rating but significantly lowered his price target from $38 to $28.
Similarly, Citizens analyst Andrew Boone kept a Market Outperform rating on the stock but trimmed his price target from $48 to $45.
Chewy Underperforms In 2026
CHWY’s technical weakness is clearly reflected in the stock’s recent market performance, with shares down 18.70% year-to-date, while the S&P 500 index has declined 4.02% YTD.
The stock was also lower by 31.54% over the past six months, and down 20.97% over the past year.
It closed Thursday 0.94% higher at $26.87 apiece, and it was lower by 0.074% in premarket on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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