Two underperforming pet stocks are showing signs of life, says Katie Stockton
Pet supply stocks like Chewy (CHWY) and FreshPet (FRPT) are showing signs of life after having been a source of underperformance for much of 2025. Their setups differ from most stocks because they have been trending lower and are not overstretched to the upside. Both CHWY and FRPT show long-term improvement on their charts and have positive intermediate-term catalysts. CHWY appears to have reversed a 10-month downtrend in a bullish intermediate-term development. The weekly stochastics have a decisive upturn from oversold territory, and the weekly MACD has its first ‘buy’ signal in nearly a year, which marks a significant shift in momentum. Next resistance can be gauged by a 38.2% Fibonacci retracement level near $32.60. The recent low in CHWY may prove to be long-term since there is a promising inverse head-and-shoulders setup on the monthly chart. Long-term oversold conditions, as indicated by the monthly stochastics, further increase the possibility of a long-term turnaround. FRPT is another pet supply stock that has advanced from a bearish cycle. FRPT logged a long-term oversold upturn in February, which has bullish implications for the remainder of the year. Long-term momentum is improved, evident in the pinched monthly MACD, which suggests a cyclical uptrend may be taking hold. On the weekly chart, FRPT also has an oversold upturn after a shakeout below support from the weekly cloud model. The upturn is a bullish intermediate-term catalyst, supporting a bigger relief rally in the weeks ahead. Next resistance is at the March high near $86. Support is near $60. These improving technical backdrops suggest both CHWY and FRPT may be transitioning into more constructive phases as sentiment shifts around pet supply companies. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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