Petco

WOOF

Market cap $768M

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 NASDAQ: WOOF is a misunderstood company amid a turnaround, with signs of traction. It faces competition from companies such as Chewy NASDAQ: CHWY, whose digital services and automated shipments resonate with consumers, but it isn't out of the game.

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 Company, Inc. (NASDAQ:WOOF) shares are trading lower Thursday after the company reported mixed first-quarter financial results on Wednesday after the market closed.

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

Petco Health & Wellness (WOOF) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to a loss of $0.01 per share a year ago.

Petco Health and Wellness NASDAQ: WOOF reported a return to positive comparable sales in the first quarter of fiscal 2026, with management saying early results support the company's “Reach for the Sky” strategy focused on product improvements, services growth, store experience and omnichannel execution.

Petco Health and Wellness Company Inc. (NASDAQ:WOOF) posted mixed first-quarter results after Wednesday's closing bell. Here's a look at the details inside the report.