Chewy (CHWY) Set to Leverage on Favorable 2026 Internet Outlook

Chewy Inc (NYSE:CHWY) is one of the best large cap stocks under $100 with huge upside potential.

As of January 23 closing, sentiment towards Chewy Inc (NYSE:CHWY) remains highly bullish. The stock received coverage from 18 analysts, 16 of whom have assigned Buy ratings and 2 have given Hold calls. It offers roughly 49% upside potential to investors based on a $47.19 median 1-year price target.

On January 6, Shweta Khajuria from Wolfe Research reaffirmed her Outperform rating on Chewy Inc (NYSE:CHWY). She lowered her price target on the stock from $46 to $44, which still leads to around 39% upside potential.

Khajuria based her optimism for Chewy Inc (NYSE:CHWY) on her positive 2026 outlook for Internet stocks. However, she thinks that the coming year might not replicate the same level of outperformance witnessed during the previous three years, amid stretched valuations. Yet, there will be opportunities linked to AI developments and product catalysts.

Chewy Inc (NYSE:CHWY) is an e-commerce retailer focused on pet health products and services. It offers supplies, medications, treats, and food for pets through a popular “Autoship” service, which generates 70% of business revenues. It offers products from over 3,500 brands through a high-volume automated distribution network.

While we acknowledge the potential of CHWY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.