The Zacks Retail and Wholesale Sector has struggled year-to-date, declining nearly 17% and underperforming the general market by a wide margin. However, the sector has tacked on nearly 8% in value over the last month, almost outperforming the S&P 500.
A popular name in the sector, Petco (WOOF - Free Report) , is on deck to unveil Q2 earnings on Wednesday, August 24th, before market open.
Petco is a fully-integrated health and wellness company for pets, offering premium products, services, and veterinary care. We see their stores quite often, and the company plays a major role in keeping pets healthy everywhere.
How does the company stack up heading into the quarterly print? Let’s take a closer look.
Share Performance & Valuation
Petco shares have tumbled year-to-date, losing more than 20% in value and vastly underperforming the S&P 500.
However, Petco shares have soared over the last month, tacking on nearly 10% in value and posting market-beating returns.
In addition, WOOF shares trade at solid valuation levels – the company’s 19.4X forward earnings multiple is well beneath its median of 26.1X since IPO in January 2021 and represents a steep 26% discount relative to its Zacks Sector.
Quarterly Estimates
A singular analyst has lowered their outlook for the quarter to be reported over the last 60 days, with the Consensus Estimate Trend declining 4%. The Zacks Consensus EPS Estimate resides at $0.23, reflecting an 8% Y/Y drop in quarterly earnings.
However, the company’s top-line appears to be in better shape – Petco is projected to have generated $1.5 billion in revenue throughout the quarter, good enough for a 3.2% year-over-year uptick.
Quarterly Performance & Market Reactions
WOOF has displayed remarkable consistency within its bottom-line results, exceeding the Zacks Consensus EPS Estimate in six consecutive quarters. Just in its latest print, the company recorded a solid 13% bottom-line beat.
Top-line results have also been strong – Petco has exceeded top-line estimates in five of its previous six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, the market has reacted well in response to WOOF’s quarterly results as of late, with shares moving upwards following three of the previous four prints, all by at least 5%.
Putting Everything Together
Petco shares have tumbled year-to-date, but they’ve posted market-beating returns over the last month.
In addition, shares trade at solid levels, well below their median since IPO and their Zacks Sector average.
Quarterly estimates reflect a declining bottom-line but an increasing top-line – a reflection of the margin compression the company has faced.
Furthermore, WOOF has consistently exceeded quarterly estimates, and the market has reacted well as of late following the company’s earnings releases.
Heading into the print, Petco (WOOF - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -6.7%.
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The Zacks Retail and Wholesale Sector has struggled year-to-date, declining nearly 17% and underperforming the general market by a wide margin. However, the sector has tacked on nearly 8% in value over the last month, almost outperforming the S&P 500.
A popular name in the sector, Petco (WOOF - Free Report) , is on deck to unveil Q2 earnings on Wednesday, August 24th, before market open.
Petco is a fully-integrated health and wellness company for pets, offering premium products, services, and veterinary care. We see their stores quite often, and the company plays a major role in keeping pets healthy everywhere.
How does the company stack up heading into the quarterly print? Let’s take a closer look.
Share Performance & Valuation
Petco shares have tumbled year-to-date, losing more than 20% in value and vastly underperforming the S&P 500.
However, Petco shares have soared over the last month, tacking on nearly 10% in value and posting market-beating returns.
In addition, WOOF shares trade at solid valuation levels – the company’s 19.4X forward earnings multiple is well beneath its median of 26.1X since IPO in January 2021 and represents a steep 26% discount relative to its Zacks Sector.
Quarterly Estimates
A singular analyst has lowered their outlook for the quarter to be reported over the last 60 days, with the Consensus Estimate Trend declining 4%. The Zacks Consensus EPS Estimate resides at $0.23, reflecting an 8% Y/Y drop in quarterly earnings.
However, the company’s top-line appears to be in better shape – Petco is projected to have generated $1.5 billion in revenue throughout the quarter, good enough for a 3.2% year-over-year uptick.
Quarterly Performance & Market Reactions
WOOF has displayed remarkable consistency within its bottom-line results, exceeding the Zacks Consensus EPS Estimate in six consecutive quarters. Just in its latest print, the company recorded a solid 13% bottom-line beat.
Top-line results have also been strong – Petco has exceeded top-line estimates in five of its previous six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
In addition, the market has reacted well in response to WOOF’s quarterly results as of late, with shares moving upwards following three of the previous four prints, all by at least 5%.
Putting Everything Together
Petco shares have tumbled year-to-date, but they’ve posted market-beating returns over the last month.
In addition, shares trade at solid levels, well below their median since IPO and their Zacks Sector average.
Quarterly estimates reflect a declining bottom-line but an increasing top-line – a reflection of the margin compression the company has faced.
Furthermore, WOOF has consistently exceeded quarterly estimates, and the market has reacted well as of late following the company’s earnings releases.
Heading into the print, Petco (WOOF - Free Report) carries a Zacks Rank #4 (Sell) with an Earnings ESP Score of -6.7%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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