Chewy, Inc. (NYSE:CHWY) is considered one of the top e-commerce stocks with long-term potential. Morgan Stanley believes Chewy is well-positioned to capitalize on opportunities in the $40 billion US veterinary clinic market. The company’s health business currently generates over $3 billion in sales.

Analysts at Morgan Stanley predict that every new 100 clinics could generate up to $50 million in EBITDA for Chewy, resulting in between $500 million and $800 million in enterprise value. They believe Chewy has the potential to scale up to 275 clinics, generating $842 million in revenue and $126 million in EBITDA.

Chewy, Inc. focuses on pet care, offering over 110,000 items through its website and mobile app. The company provides a wide range of products for pets like dogs, cats, birds, and fish, making it a convenient one-stop solution for pet owners across the U.S.

While Chewy has investment potential, some believe certain AI stocks offer greater upside and less downside risk. For those interested in AI stocks benefiting from Trump-era tariffs and the onshoring trend, consider exploring the best short-term AI stock.

Read more at Yahoo Finance: Morgan Stanley Bullish About Chewy (CHWY) Prospects in $40B Veterinary Clinic Market