This Growth Stock Is Down, but Buying the Dip Now Could Be a Genius Move
After a successful reentry into the public market in 2021, the stock of Petco Health and Wellness (NASDAQ: WOOF) has been a "dog" so far in 2022. The stock is down 30% year to date and its problems were exacerbated last week when the company missed earnings estimates and lowered guidance, causing the stock to sell off.
While the market said "woof" to the results, here's why buying shares on the dip now could look like a genius move in the future.
Believe it or not, there are more pets in the country than ever before. And this is a secular growth driver for a company like Petco. The American Society for the Prevention of Cruelty to Animals (ASPCA) estimates that 23 million Americans adopted pets during the pandemic. This gives Petco a larger potential base of long-term customers that could come back repeatedly for everything from pet food to grooming and healthcare.
Source Fool.com
