Chewy Inc shares rose 6.78% to $19.06 on Wednesday after Goldman Sachs maintained a Buy rating on the stock. The firm reduced its price target to $34 from $46, highlighting a volatile session for the broader market. Consumer Discretionary sectors showed strength at +1.59%, while Technology lagged with a -1.54% decline.

Technical Levels and Resistance

Despite the rebound, Chewy's longer-term trend remains under pressure. The stock is trading below critical moving averages, which act as layers of resistance until reclaimed. Technical indicators suggest cautious momentum, with the MACD remaining below its signal line and a negative histogram indicating cooled upward pressure.

The trend structure reflects significant damage, with the 20-day average below the 50-day average, and the 50-day average below the 200-day average. A "death cross" formed in November 2025. The stock is down 56.34% over the past year and trades slightly above its 52-week low.

Key Technical Indicators

Traders are watching key resistance at $19.92, which aligns with the 20-day simple moving average. Critical support sits at $17.40, matching the 52-week low.

Benzinga Edge Scorecard

Chewy's Benzinga Edge profile shows strong growth characteristics but weak momentum and a low value score. The breakdown includes a Momentum score of 2.48 (Bearish), a Value score of 12.21 (Weak), and a Growth score of 96/100 (Strong). For long-term investors, the setup may improve if the stock reclaims key moving averages.

Chewy, Inc. reported upbeat first-quarter results but lowered its fiscal 2026 sales outlook, prompting several analysts including TD Cowen, RBC Capital, JP Morgan, and Goldman Sachs to reduce their price targets. The online pet retailer's adjusted earnings of 43 cents per share exceeded the 39-cent consensus estimate, while net sales rose 7.7% year over year to $3.357 billion, beating expectations of $3.352 billion. Despite the earnings beat, the company's revised revenue forecast for fiscal 2026 of $13.4 billion to $13.55 billion, down from a prior range of $13.6 billion to $13.75 billion, fell short of the $13.84 billion analyst estimate.

Analyst Reactions

Following the announcement, multiple firms adjusted their ratings and price targets. Goldman Sachs analyst Alexandra Steiger maintained a Buy rating but lowered the price target to $34 from $46. TD Cowen analyst William Kerr maintained a Buy rating but lowered the price target to $34 from $42. Citizens analyst Andrew Boone maintained a Market Outperform rating but lowered the price target to $28 from $45. Baird analyst Justin Kleber kept an Outperform rating and reduced the price target from $40 to $30. Barclays analyst Ross Sandler maintained an Overweight rating while cutting the price target from $40 to $36. RBC Capital analyst Steven Shemesh maintained an Outperform rating and lowered the price target to $34 from $47. JP Morgan analyst Doug Anmuth maintained an Overweight rating and lowered the price target to $29 from $35.

Q2 Guidance

For the second quarter, Chewy forecast adjusted earnings of 36 cents per share, above the 25-cent analyst estimate. However, the company projected sales of $3.30 billion to $3.33 billion, which is below the consensus estimate of $3.38 billion. Shares of Chewy fell 4.5% to trade at $19.03 on Thursday following the announcement.