2 Unstoppable Stocks to Buy and Hold for a Decade

Chewy has positioned itself as a leading online pet store brand, and its investments in pet healthcare and clinics are widening its lead and creating a more sticky relationship with pet owners.

Chewy’s stock price is down well off its highs from a few years ago. Higher inflation and lower consumer spending slowed its revenue growth, but it’s starting to ramp up its growth again. It finished 2024 with revenue up 15% year over year in the fourth quarter.

Chewy could see growth slow in a recession, but that will mostly impact its ability to win new customers in a sluggish consumer spending environment. Existing customers that regularly shop with Chewy are still going to have to buy pet food and other products for their furry family members. Pet ownership trends are looking favorable for Chewy among younger generations, so the business will have ample opportunity to grow over the long term. The key is to continue building brand awareness and keep expanding its service offering to fend off competition.

Importantly, Chewy already has a loyal customer base of 20 million that spent an average of $578 last year. Average spending per customer has increased every year from $434 in 2021. This indicates high customer satisfaction.

It’s also beneficial for Chewy that over 80% of annual sales are generated from its autoship program, where customers can have their preferred pet food automatically shipped every month.

Repeat customers and investments in pharmacy and opening vet care clinics could deepen relationships with customers. These healthcare services should also generate much higher margins than retail sales, which could benefit the stock significantly over the next decade.

The stock’s current valuation of 1.36 times trailing sales doesn’t seem to reflect the company’s long-term potential. If Chewy continues to have success with its non-retail pet services, the stock could soar.

Before you buy stock in Shopify, 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 Shopify 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 $607,048!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $668,193!*

Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 161% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy and Shopify. The Motley Fool has a disclosure policy.

2 Unstoppable Stocks to Buy and Hold for a Decade was originally published by The Motley Fool