Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Petco Health & Wellness (WOOF) or Ulta Beauty (ULTA). But which of these two stocks is more attractive to value investors?
Petco Health and Wellness Company, Inc. is upgraded to a 'strong buy' due to compelling valuation and improving fundamentals. Despite a Q1 EPS miss driven by a one-time debt extinguishment loss, WOOF delivered revenue above expectations and year-over-year cash flow growth. Management guides for flat to modest revenue growth and higher EBITDA in 2026, even with net store closures, indicating underlying comparable sales strength.
Petco Health and Wellness (WOOF) remains rated Hold as Q1 2026 shows stabilization but not a clear turnaround. Comparable sales turned positive at +0.7% y/y, but net sales were flat and product sales declined. Services grew 6.8% y/y, supporting differentiation, while consumables showed stabilization but stayed slightly negative in dollar terms.
Petco Health and Wellness Co (NASDAQ:WOOF) reported a wider-than-expected net loss in its first quarter even as revenue edged past estimates, sending shares down nearly 13% in premarket trading Thursday. The pet retailer posted net sales of $1.5 billion for the quarter ended May 2025, up 0.2% year-over-year and slightly above the $1.49 billion analysts had forecast.
Petco Health and Wellness Company, Inc. (WOOF) Q1 2026 Earnings Call Transcript
Investors interested in stocks from the Retail - Miscellaneous sector have probably already heard of Petco Health & Wellness (WOOF) and Ulta Beauty (ULTA). But which of these two companies is the best option for those looking for undervalued stocks?
Investors with an interest in Retail - Miscellaneous stocks have likely encountered both Petco Health & Wellness (WOOF) and Tractor Supply (TSCO). But which of these two stocks offers value investors a better bang for their buck right now?
Investors looking for stocks in the Retail - Miscellaneous sector might want to consider either Petco Health & Wellness (WOOF) or Tractor Supply (TSCO). But which of these two companies is the best option for those looking for undervalued stocks?
Petco swung to profitability in fiscal 2025 after three years. This is a strong buy signal.
Petco Health & Wellness (NASDAQ:WOOF) has surged nearly 48% over the past week and 37% over the past month, with shares now trading around $3.44 as of March 13.
Petco Health and Wellness Company rallied 34.6% after Q4 results signaled a potential end to years of revenue and profit declines. WOOF's management expects flat to modest revenue growth and EBITDA of $415–$430 million in 2026, with a focus on profitable growth. The company is executing its 'Reach for the Sky' turnaround, emphasizing operational improvements, digital expansion, and differentiated in-store experiences.
Petco is closing underperforming stores as it prioritizes free cash flow production. Management expects sales to rebound in 2026.