Is Petco a Good Investment?

PHOTO CREDIT: Petco

OVERVIEW

Why You Should?

  1. Under a Biden administration, there will be more stimulus. This will help people have more disposable income. Some of this disposable income can be spent on pet products and services. This will help the company see higher sales volumes. This will also benefit investors in the company.
  2. Petco is a one-stop pet shop. They offer consumers adoption services, and then also offer vet services. They also offer all of the essential and non-essential products in their stores. This kind of “ecosystem” of complementary products and services will benefit the company. This will also benefit investors in the company.
  3. Petco has invested in the future of the pet industry. For example, they have invested in their virtual pet service, something that has seen strong demand during this pandemic. They have also spent some money in order to upgrade their stores for the future. This will benefit the company in the future and will also benefit investors in the future.

Why You Should Not?

  1. The COVID-19 pandemic has hurt some of the company’s businesses. For example, they have had to limit operations across all of its stores and spend money in order to maintain high cleaning standards. This has hurt the company in the short-term and might also hurt investors as well.
  2. Petco recently went public just last week. The stock soared on its first day of trading and has fallen after that. I would wait for some time for the stock price to stabilize and fall a bit before investing in this company.

MY OPINION

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Aaditya Patel

Aaditya Patel

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.