10 Best Nasdaq Stocks Under $5 to Buy

4. Petco Health and Wellness Company Inc. (NASDAQ:WOOF)

Current Market Price: $3.02

Number of hedge funds: 22

Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is a leading pet health and wellness retailer offering a wide range of products and services for pets, including food, supplies, grooming, and veterinary care. The company operates a network of retail locations and provides an integrated approach to pet care, focusing on the health and well-being of pets and their owners.

Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is well-positioned to take advantage of the growing pet care market, driven by increasing pet ownership and consumer spending on pet health and wellness. For Q3 2024, the company reported steady earnings results, with net revenue rising modestly to $1.51 billion (+1.2%). While growth was driven by the Consumables segment and Services & other businesses, a decline in the Supplies and Companion Animal segment partially offset that growth. Nevertheless, the company managed to reduce its net loss for the quarter to $6.5 million from a loss of $14.5 million in the previous year quarter. For Q4 2024, Petco Health and Wellness Company Inc. (NASDAQ:WOOF) anticipates net revenue of approximately $1.55 billion and an adjusted EPS ranging from $0.0 to $0.02. Overall, management is optimistic about the structural improvements made in the first nine months of the year, positioning them for a strong finish to 2024, and expects the momentum to continue into 2025.