2 Great Growth Stocks To Buy On The Dip Heading Into June

The stock had recouped nearly all of its losses following its February pullback, but it fell again in early April. PINS popped out of oversold RSI (30) territory earlier this month, as it attempts to regain some of its momentum, but it still sits below neutral RSI (50) levels at 47. On the valuation front, PINs trades 15% below its own year-long median at 13.8X forward 12-month sales and below fellow social media-style firm Snap’s (SNAP Quick Quote SNAP - Free Report) 19.3X.

Pinterest is ready to remain a hit with advertisers and users as people disconnect from traditional media. And a recent Wall Street Journal article highlighted the company’s successful use of artificial intelligence to boost “its user and ad-revenue numbers at a much faster pace than most of its social-media peers.” The company is also improving its video capabilities. And 14 of the 20 brokerage ratings Zacks has are “Strong Buys” or “Buys,” with none below a “Hold.”

Chewy (CHWY Quick Quote CHWY - Free Report)

Chewy, like PINS, was designed to succeed during the remote environment. More importantly, e-commerce was already booming long before the pandemic and people utilizing delivery, especially automated delivery for essentials they know they need such as pet food, are unlikely to go back even as they start to eat out and take vacations as the vaccine push rolls on in the U.S.

CHWY is an e-commerce pet store with relatively speedy delivery. The firm sells pet food, supplies, treats, medications, and nearly anything else imaginable for a wide variety of animals. CHWY was founded in 2011 and went public in 2019 and has carved out a niche within a crowded digital commerce world dominated by Amazon (AMZN Quick Quote AMZN - Free Report), Target (TGT Quick Quote TGT - Free Report), and others.

Chewy has expanded its offerings to make it more of a player in the pet industry that isn’t going out of style. CHWY last October launched its telehealth service called Connect with a Vet. The telehealth service, only available to autoship customers, could be a hit as people opt for convenience where they can. The firm, which also boosted its pharmacy offerings, announced on May 21 the expansion of its telehealth service to include free video consultations, extended hours, and more.

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