Petco Health & Wellness Company, Inc. Class A (WOOF)

Petco's stock performance has been influenced by several events, including strong profitability improvements reported in Q2 2026 earnings, a class-action lawsuit alleging misleading statements, Q3 2026 earnings that surpassed EPS estimates but fell short of revenue expectations, a 5% stock rebound in early October 2025, a refinancing initiative and leadership transition in early February 2026, and ongoing concerns regarding persistent debt, weak margins, and continued sales declines.

Demand for Petco's products and services exhibits some seasonality, with the company engaging in seasonal programs to boost purchases, increased demand for services in the spring, and historically lower adjusted EBITDA in the third quarter compared to the second quarter; essential consumables and services have demonstrated resilience.

Petco Health & Wellness Company, Inc. operates in the Consumer Cyclical sector, specifically in the Specialty Retail industry, offering a wide array of pet health and wellness products and services, including veterinary care, grooming, training, telehealth, and pet health insurance through digital platforms like petco.com. Major brands offered by Petco include WholeHearted, Reddy, and Well & Good.

Petco Health & Wellness Company, Inc. has a significant geographic presence across the United States, Mexico, and Puerto Rico, utilizing over 1,500 retail locations and a robust digital platform to serve millions of pet parents.

Petco's brand reputation has been impacted by a class-action lawsuit alleging false and misleading statements regarding the sustainability of its business model and pandemic-driven growth, as well as general struggles with sales and profitability.

Petco's ownership is heavily weighted towards institutional investors, who collectively hold approximately 66.3% of the company's stock; major institutional owners include CVC Management Holdings II Ltd., Canada Pension Plan Investment Board, Dimensional Fund Advisors Lp, Vanguard Group Inc, BlackRock, Inc., Long Focus Capital Management, Llc, Holocene Advisors, LP, Fmr Llc, Morgan Stanley, Two Sigma Advisers, Lp, and Scooby Aggregator LP.