The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) ranks among the overlooked penny stocks to buy right now, supported by strong upside potential. A return to positive comparable sales is drawing a mixed but improving set of price target adjustments from Wall Street.

On June 3, 2026, Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported first-quarter 2026 results. Net sales rose 0.2% to $1.5 billion, with comparable sales up 0.7%, marking the company's first positive comp in five quarters. Gross margin expanded 21 basis points to 38.4%, operating income rose 50.5% to $24.6 million, and adjusted EBITDA came in at $97.3 million versus $89.4 million a year earlier. Net loss widened to $15.1 million from $11.7 million.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF)'s CEO Joel Anderson said the results validate the company's "Reach for the Sky" strategy, citing improvement in consumables and continued strength in services. Petco reaffirmed its full-year 2026 outlook, guiding for adjusted EBITDA of $415 million to $430 million.

The earnings prompted several analyst responses.

On June 5, 2026, Goldman Sachs raised its price target on Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) to $4.14 from $3.83 while keeping a "Neutral" rating, calling the quarter an inflection point. On June 4, 2026, Evercore ISI's Oliver Wintermantel raised the firm's target to $3.50 from $3, keeping an "In Line" rating, saying more proof is still needed. That same day, Citi's Steven Zaccone lowered the firm's target to $3.25 from $4, maintaining "Neutral" and citing reduced EBITDA estimates against a weaker consumer backdrop.

The stock is down over 5% over the past year.

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a comprehensive pet care retailer and services provider that focuses on improving the health and wellness of pets through products, services, and veterinary care. It operates pet care centers, offers online shopping with delivery options, and provides services such as grooming, training, and veterinary care, including vaccinations and surgery.

While we acknowledge the potential of WOOF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.