Chewy’s Stock Price (CHWY) Tests Resistance Ahead of Earnings: What to Expect

Chewy Inc. (NYSE: CHWY) is currently trading at $35.26 per share, 1.21% higher in the pre-market, ahead of earnings. Markets are keenly watching the resistance level of $35 ahead of the print, to see how CHWY reacts.

The Street is looking for Chewy to report an EPS of $0.30 on the quarter, a 50% increase compared to the same quarter last year ($0.20). Revenue is expected to reach $3.1 billion, representing a 7.6% year-over-year growth rate.

Currently, the stock is trading below both the 50-day SMA ($35.56), and the 200-day SMA ($37.55), suggesting bearish momentum on the short to medium term. Looking again at the 1 year chart above and it is clear to see why, with Chewy's stock having fallen 27.7% from the highs in early June.

The options market is pricing in an expected price movement of approximately 8.37% into the end of the week, with volatility surrounding the earnings announcement not uncommon.

Recent developments have also played a role in shaping market sentiment towards Chewy. The company's acquisition of SmartEquine from Covetrus, announced on October 30, is expected to bolster Chewy's presence in the equine health market. SmartEquine's subscription-based supplements and personalized nutrition offerings are anticipated to be accretive to Chewy's adjusted EBITDA margin upon closing in the fourth quarter of fiscal 2025.

Furthermore, the launch of “Get Real™,” a new line of fresh dog food, on September 10, showcases Chewy's commitment to expanding its product offerings and catering to health-conscious pet owners. The “Get Real™” line features minimally processed dog food with human-grade ingredients, available through Chewy's subscription service.

The $35 level represents a key resistance point for Chewy's stock, with the current trading range having held for more than two months. A breakout above this level could signal renewed bullish momentum, while a failure to break through could lead to further consolidation or a potential pullback. The upcoming earnings release will likely serve as a catalyst for either move.