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Peeling Back The Layers: Exploring Petco Health and Wellness Through Analyst Insights

Author: Benzinga Insights | July 18, 2024 10:01am

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Petco Health and Wellness (NASDAQ:WOOF) in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 4 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 3 1 0 0
3M Ago 0 0 1 0 0

Analysts have recently evaluated Petco Health and Wellness and provided 12-month price targets. The average target is $3.71, accompanied by a high estimate of $5.00 and a low estimate of $1.75. Marking an increase of 7.85%, the current average surpasses the previous average price target of $3.44.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Petco Health and Wellness. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Seth Basham Wedbush Raises Outperform $5.00 $4.00
Seth Basham Wedbush Maintains Outperform $4.00 $4.00
Steven Shemesh RBC Capital Raises Outperform $3.00 $2.70
Anna Andreeva Needham Maintains Buy $5.00 $5.00
Seth Basham Wedbush Raises Outperform $4.00 $3.00
Michael Lasser UBS Raises Neutral $3.25 $2.50
Steven Zaccone Citigroup Lowers Neutral $1.75 $2.85

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Petco Health and Wellness. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Petco Health and Wellness compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Petco Health and Wellness's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Petco Health and Wellness analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Delving into Petco Health and Wellness's Background

Petco Health and Wellness Co Inc is a pet health and wellness company focused on improving the lives of pets, pet parents, and its partners with approximately 1,423 pet care centers offering pet care products such as puppy food, treats, nutrition, and supplies through retail outlets and online platforms. The company generates revenue from the sale of products and services such as dog and cat food, supplies, and companion animals, among others.

Understanding the Numbers: Petco Health and Wellness's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Petco Health and Wellness's revenue growth over a period of 3 months has faced challenges. As of 30 April, 2024, the company experienced a revenue decline of approximately -1.72%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -3.04%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -3.96%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Petco Health and Wellness's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.88%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Petco Health and Wellness's debt-to-equity ratio stands notably higher than the industry average, reaching 2.56. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: WOOF

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