Chewy remains a 'Buy' despite 40% YTD drop and lowered 2026 sales guidance amid macro challenges.

Chewy's stock has fallen about 40% year-to-date and the company recently lowered its full-year 2026 sales forecast to $13.40–$13.55 billion, citing macroeconomic headwinds and consumer shifts toward cheaper pet products. Despite this, analyst Gary Alexander views these issues as temporary and cyclical rather than structural. He highlights ongoing improvements in profit margins, customer growth, and engagement as signs of long-term strength and market share gains. While short-term volatility is expected, the current valuation presents an attractive buying opportunity for investors willing to accept some near-term fluctuations.