<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Fueled by fast sales and earnings growth, Chewy's stock price soared during the early days of the pandemic.</li><li>Growth has returned to a more reasonable pace.</li><li>If Chewy meets management's sales goal, the stock could meaningfully appreciate.</li><li>10 stocks we like better than Chewy ›</li></ul>To make a proper investment decision, you should try to forecast a company's stock price. You'll need to project certain items, like sales, and the corresponding price-to-sales (P/S) ratio.That sounds simple, but it's challenging to predict how a company will perform five years from now. Still, it's a necessity for long-term investors. Of course, you're not bound by those forecasts. You can, and should, update them as new information (e.g., quarterly results) comes in.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »Chewy's (NYSE: CHWY) stock price has had a wild ride. In early 2021, the shares reached an all-time high of nearly $120. They currently sell at more than 80% below that price. Where will the share price reach in five years?<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2ODA5My9nZXR0eWltYWdlcy0yMjMwMTI0MTMzLTE1MTh4ODAwLTRhOGRkYjkuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="369" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2ODA5My9nZXR0eWltYWdlcy0yMjMwMTI0MTMzLTE1MTh4ODAwLTRhOGRkYjkuanBnJnc9NzAw"/>Image source: Getty Images. <h2>Sales growth</h2>It's useful to look at historical sales and earnings growth. During the early days of the pandemic, Chewy's sales soared as many people adopted pets and used the company's online platform to order pet products.Fiscal 2022 sales reached $10.1 billion, up more than 41% from $7.1 billion in 2020. Chewy also reported a profit under generally accepted accounting principles (GAAP) of $0.12 per diluted share, compared to a $0.23 per diluted share loss in 2020. The 2022 fiscal year ended on Jan. 29, 2023.However, that sales pace proved unsustainable. More recent periods seem more reflective of Chewy's growth rate. Last year's sales grew 8.3% based on the same number of weeks in both years.Management has done a nice job driving sales from autoship customers (83.3% of 2025 sales, up from 79.2%) and from active customers (those who order a product or service at least once in the past year), which grew 4% to 21.3 million.It has a high-single-digit to low-double-digit sales growth goal. Chewy ended 2026 with $12.6 billion in sales, or $29.59 a share. Using an 8% growth rate, that figure will increase to $43.48 at the end of five years.It's more challenging to calculate future diluted earnings per share due to volatility. For instance, the 2025 figure fell from $0.91 to $0.52, but the decrease was largely due to higher income tax expenses. Therefore, I think it's better to use sales when making the price projection.<h2>Future valuation</h2>Chewy's P/S ratio is 0.7, below the five-year median of 1.3 times. This might seem like a prime value stock, but you need to take the next step and figure out the projected price by applying a multiple to anticipated sales.Assuming a P/S multiple of 1, the shares would trade at $43.48. That's about double the current share price, making this a potentially attractive buying opportunity. Hence, should the company meet the lower end of management's sales growth goal, the stock seems like a bargain for long-term investors.Of course, you should be aware of what will happen if growth slows materially. Should Chewy increase sales by only 4% and the multiple stays at 0.7, that equates to a stock price of $25.20. That represents only a 17% gain over five years.<h2>Should you buy stock in Chewy right now?</h2> Before you buy stock in Chewy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chewy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 21, 2026. Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Chewy's stock, which peaked at nearly $120 in early 2021, is currently over 80% lower. With fiscal 2022 sales at $10.1 billion, growth has slowed to 8.3%. If Chewy meets its sales goals, the stock could reach $43.48 in five years, making it a potential buy. However, if growth slows, the price may only rise to $25.20. Analysts suggest considering other stocks as better investment opportunities.

If You Buy Chewy Stock Today, Here's Where It Could Be in 5 Years