Chewy vs. Five Below: Which Retailer Stock Is a Better Buy for 2027?

The article compares Chewy and Five Below as investment options for 2027. Chewy offers recurring revenue through its Autoship subscription program and high-margin healthcare services, with steady 6-7% growth and a 1.8% net margin. Five Below operates an aggressive physical retail expansion strategy targeting youth, achieving 23% revenue growth and a 7.5% net margin. Despite Chewy's recurring revenue model, Five Below is recommended as the better buy due to its cheaper forward P/E ratio (23.5x vs 27.5x), stronger earnings growth prospects, and impressive same-store sales increases of 18%.