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3 Growth Stocks on Sale: Chewy, Uber, ServiceNow

Yahoo Finance •
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With the broader market looking overbought, three stocks stand out as bargains after recent sell-offs. Chewy, Uber Technologies, and ServiceNow have all pulled back significantly from their highs, offering investors entry points at discounted valuations.

Chewy shares have fallen to less than half their June peak, trading near 52-week lows despite solid fundamentals. The online pet supply retailer posted 8% revenue growth last quarter, with subscription-based sales now comprising 84% of total revenue. This subscription model creates sticky customers who are cheaper to retain, driving widening profit margins. Meanwhile, Uber has tumbled nearly 30% since November after Q4 earnings missed estimates, but the underlying business remains strong with 22% growth in total trips and 20% revenue gains. The company expects per-share earnings to improve 37% year over year in the current quarter.

ServiceNow presents perhaps the steepest discount, down nearly 50% from its July peak. The AI workplace automation company turned $3.6 billion in revenue into $400 million in net income last quarter, with full-year profits exceeding $1.7 billion. Analysts project comparable growth this year and next, with a consensus price target of $187.69 representing 78% upside from current levels. Unlike pure-play AI companies facing scrutiny over technology costs, ServiceNow's practical automation solutions provide clear value through no-code app development, automated customer service, and digital security.