Petco Health and Wellness (NASDAQ:WOOF) Rating Increased to Buy at Jefferies Financial Group

Jefferies Financial Group upgraded shares of Petco Health and Wellness (NASDAQ:WOOF) from a hold rating to a buy rating in a research note released on Thursday morning, Marketbeat reports. The firm currently has $5.00 target price on the stock, up from their prior target price of $4.05.

A number of other research analysts have also commented on WOOF. Evercore reduced their price target on shares of Petco Health and Wellness from $4.00 to $3.00 and set an “in-line” rating for the company in a research report on Tuesday, February 3rd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Petco Health and Wellness in a research report on Monday, December 29th. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $3.94.

Petco Health and Wellness Price Performance

WOOF stock opened at $3.23 on Thursday. The firm has a 50 day moving average of $2.70 and a 200-day moving average of $3.10. The firm has a market capitalization of $1.03 billion, a P/E ratio of 107.67 and a beta of 1.75. Petco Health and Wellness has a 12 month low of $2.24 and a 12 month high of $4.51. The company has a current ratio of 0.91, a quick ratio of 0.35 and a debt-to-equity ratio of 1.37.

Petco Health and Wellness (NASDAQ:WOOF) last posted its earnings results on Wednesday, March 11th. The company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.03). Petco Health and Wellness had a return on equity of 0.89% and a net margin of 0.15%.The firm had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the company posted ($0.05) EPS. The business’s revenue was down 2.4% on a year-over-year basis. As a group, sell-side analysts predict that Petco Health and Wellness will post -0.22 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in Petco Health and Wellness during the second quarter worth about $3,770,000. Connor Clark & Lunn Investment Management Ltd. increased its position in shares of Petco Health and Wellness by 19.0% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,793,312 shares of the company’s stock valued at $5,075,000 after purchasing an additional 286,193 shares during the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Petco Health and Wellness during the 2nd quarter valued at about $55,000. Jupiter Asset Management Ltd. purchased a new position in shares of Petco Health and Wellness during the 2nd quarter valued at about $115,000. Finally, Legacy Capital Wealth Partners LLC bought a new stake in Petco Health and Wellness in the 2nd quarter worth approximately $98,000.

Petco Health and Wellness News Summary

Here are the key news stories impacting Petco Health and Wellness this week:

• Positive Sentiment: Jefferies upgraded Petco to Buy and raised its price target to $5, saying the turnaround is complete and growth is ahead; that upgrade and the elevated PT are a direct catalyst for the rally. Article Title
• Positive Sentiment: Q4 showed stronger profitability metrics: EBITDA growth, narrower loss versus prior year and reduced leverage — signals that operational fixes are working and support multiple expansion. Article Title
• Positive Sentiment: Management shifted from cost savings to growth initiatives — expanding services (grooming/training), fresh food and own brands, and provided FY‑2026 revenue guidance (~$6.0–$6.1B) and a 0–1.5% sales growth target for 2026, which supports a constructive forward narrative. Article Title
• Neutral Sentiment: Top-line was mixed: Q4 revenue modestly beat estimates ($1.52B vs. $1.51B) but was down 2.4% year‑over‑year — a small revenue beat plus improving margins creates mixed near-term signals. Article Title
• Negative Sentiment: Petco missed EPS estimates for the quarter (reported a slight loss vs. a small expected profit), and consensus forecasts still expect negative full‑year EPS, which keeps profitability risk on investors’ radar. Article Title
• Negative Sentiment: Despite improvements, revenue decline and thin net margins (near breakeven) mean the company remains sensitive to consumer spending and execution risk as it pivots to growth. Article Title

Petco Health and Wellness Company Profile

Petco Health and Wellness Company, Inc (NASDAQ: WOOF) is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.