Three consumer names — Chewy, Cava Group and e.l.f. Beauty — were highlighted as discounted growth plays despite weaker discretionary spending and higher prices weighing on the sector.
Chewy added more than 200,000 net customers and grew quarterly sales 7.7%, with 84% of net sales coming from autoship and pet-industry spending projected to reach $165 billion this year.
Cava posted 9.7% same-restaurant sales growth in its latest quarter and ended the period with 459 locations, leaving substantial expansion room compared with Chipotle's more than 4,100 restaurants.
e.l.f. Beauty lifted fiscal 2026 net sales 25% and logged a seventh straight year of market-share gains, even as tariffs and growth spending pressured margins and left the stock down 22% year to date.
The broader thesis is that near-term macro headwinds have compressed valuations — Chewy trades at 12 times forward earnings, e.l.f. at 18, and Cava at 7 times forward sales — while their longer-term growth runways remain intact.