Should You Buy Petco Health and Wellness Company Inc (WOOF) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
2.790
1 Day change
-0.71%
52 Week Range
4.500
Analysis Updated At
2026/01/26
Petco Health and Wellness Company Inc (WOOF) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's financial performance is weak, technical indicators are bearish, and there are no strong positive catalysts to support a significant upside in the near term. Holding off on investment until clearer growth trends emerge is advised.
Technical Analysis
The stock is currently in a bearish trend with moving averages indicating downward momentum (SMA_200 > SMA_20 > SMA_5). The MACD histogram is negative and contracting, and RSI is neutral at 49.491, showing no clear signal. Key support levels are at 2.858 and 2.76, while resistance levels are at 3.175 and 3.273.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The low put-call ratios indicate a bullish sentiment in the options market, but this is not enough to offset the weak technical and financial indicators.
Technical Summary
Sell
9
Buy
4
Positive Catalysts
Petco's services business is seen as a differentiator, with efforts to improve utilization through staffing, marketing, and technology. The company has also announced a $600 million senior secured notes offering to enhance liquidity and refinance existing loans.
Neutral/Negative Catalysts
Analysts have lowered price targets, citing competitive pressures and weak macroeconomic conditions. Insider and hedge fund trading trends are neutral, and there is no recent congress trading data.
Financial Performance
In Q3 2026, revenue dropped by -3.11% YoY to $1,464,411,000. Net income plummeted by -155.96% YoY to $9,330,000, and EPS fell by -150.00% YoY to 0.03. However, gross margin increased slightly by 2.02% YoY to 38.86%. Overall, the financial performance reflects significant challenges.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are mixed but leaning negative. Goldman Sachs maintains a Buy rating with a lowered price target of $4.53, citing potential top-line growth in 2026. Morgan Stanley and BofA are more cautious, with price targets of $3.75 and $3.00, respectively, citing competitive pressures and weak same-store sales.
Wall Street analysts forecast WOOF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WOOF is 3.71 USD with a low forecast of 3 USD and a high forecast of 4.53 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast WOOF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WOOF is 3.71 USD with a low forecast of 3 USD and a high forecast of 4.53 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
4 Hold
1 Sell
Hold
Current: 2.810
Low
3
Averages
3.71
High
4.53
Current: 2.810
Low
3
Averages
3.71
High
4.53
Goldman Sachs
Buy
maintain
AI Analysis
2025-12-02
Reason
Goldman Sachs
Price Target
AI Analysis
2025-12-02
maintain
Buy
Reason
Goldman Sachs lowered the firm's price target on Petco to $4.53 from $5.14 and keeps a Buy rating on the shares. Petco reported an earnings beat for Q3 and plans to drive top-line growth in 2026 amid the competitive environment, the analyst tells investors in a research note. The services business is seen as a key differentiator, with ongoing efforts to improve utilization through staffing and marketing, and to enhance accessibility via technology and data sharing, Goldman says.
Morgan Stanley
Equal Weight
downgrade
2025-11-26
Reason
Morgan Stanley
Price Target
2025-11-26
downgrade
Equal Weight
Reason
Morgan Stanley lowered the firm's price target on Petco to $3.75 from $4.50 and keeps an Equal Weight rating on the shares. Competitive dynamics and a weak macro picture add pressure, limiting visibility on the path to a sustained topline inflection and further profitability improvements, the analyst tells investors following the company's Q3 report.
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