Opinions Jim Cramer - Mad Money
Petco Health and WellnessWOOFCOMMENTMay 14, 2021
They report Thursday. They can capitalize on the pandemic pet boom and has issued guidance to this effect. They've been advertising a lot. Shares jumped 9% today, so maybe it's rallied ahead of earnings.
Jim Cramer - Mad MoneyUnknown
$23.37
Stock price when the opinion was issued
$3.01
As of May 29, 2026. Market Open.
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WEAK BUY
Last Thursday, they reported better than expected revenue growth and adjusted EBITDA. Trends are accelerating across all categories, including same-store sales. However, guidance was slightly below consensus in same-store sales and EBITDA margin rate. Also, the company sees the market as flat. Shares got hammered today by 11%, giving back its post-report gains. He prefers CHWY.
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However, Petco has beaten its last four earnings (the next is on August 17), earnings have risen 12% in the past year, insiders have bought more shares, and it trades at a reasonable 22.22x. In mid-June, Petco announced it will open stores to serve pets and farm animals in rural American communities, where 14% of the U.S. population lives and totalling a $7 billion addressable market. Interesting. Let's see how this plan fares.
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