Not Nearly Enough People Are Talking About Chewy Stock

Chewy (NYSE: CHWY) is the type of stock the market doesn't pay nearly enough attention to because it's in a category that doesn't grab headlines. The company isn't chasing some cutting-edge technology like artificial intelligence (AI) or quantum computing, it's selling pet food and supplies. However, it's built an attractive retail model with significant recurring revenue, and that type of business is very valuable.Image source: Getty Images.The beauty of Chewy is in its business model. The company has close to 21 million active customers, and most importantly, more than 80% of its sales come from customers that have used Autoship in the past year. This program allows Chewy's customers to set up recurring deliveries for items like dog food and cat litter. Autoship sales give Chewy a predictable revenue stream that is much less tied to economic cycles. Add in the fact that about 85% of its sales come from non-discretionary product categories, and you have an e-commerce business that looks a lot closer to Walmart or Tractor Supply Company in terms of resiliency. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool