America's Best Brand Has One Of America's Worst Stocks

The annual reputation rankings are released in May based on a poll of 6,226 Americans identifying the 100 most visible brands, followed by additional surveys on brand-related political issues. The rankings show no relationship to share price performance. Chewy ranks No. 1, yet its stock is down 41% for the year after CEO comments and investor reaction caused a one-day drop. Revenue in the final quarter of last year barely increased to $3.3 billion, while EPS rose from $0.06 to $0.09, but net margins remain very small. Chewy faces competition from Petco and PetSmart, and also from Amazon and Walmart, which combine stores with e-commerce, while Chewy is online-only. Admiration in reputation does not translate into investor returns.

"Once a year, the results of "The 2026 Axios Harris Poll 100 reputation rankings" are released in May. It is based on a poll of 6,226 Americans to pick the 100 most visible brands in America. Then, more people are surveyed on issues "related to brands and politics.""

"One thing that is clear from the reputation rankings is that they have no relationship to share price performance. The No. 1 brand on the list was Chewy ( NYSE: CHWY | CHWY Price Prediction), the online pet supply company. Its stock is down 41% this year. Recent comments by its CEO sent the stock plummeting in a single day."

"Chewy management is anxious about its prospects. CEO Sumit Singh told attendees at the J.P. Morgan Technology, Media & Communications Conference, "In the last couple of months, we are continuing to see and interpret the consumer as being more stretched than we were when we entered the year." Investors panicked and sold the stock off by 9% in one day."

"In the final quarter of last year, revenue barely moved, to $3.3 billion. EPS rose from $.06 to $.09. However, net margins continue to be tiny. Chewy also has a competition problem. Within its sector, this includes Petco ( NASDAQ: WOOF) and PetSmart. However, they are not the problem. Retail giants Amazon ( NASDAQ: AMZN) and Walmart ( NYSE: WMT) also compete. Chewy operates online only. Most of the competition has stores and e-commerce operations."

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