5 Penny Stocks That Aren’t Scams: Best Cheap Stocks to Buy

In this article, we will list the 5 Penny Stocks That Aren’t Scams: Best Cheap Stocks to Buy. Please visit 7 Penny Stocks That Aren’t Scams: Best Cheap Stocks to Buy if you would like to see the extended list and the methodology behind it.

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

Stock Upside Potential: 42.75%

Forward P/E: 11.16

Number of Hedge Fund Holders: 27

Petco Health & Wellness Co. Inc. (NASDAQ:WOOF) is one of the best cheap penny stocks to buy that aren’t scams. On March 16, UBS raised its price target on Petco Health & Wellness Co. Inc. (NASDAQ:WOOF) to $4.00 from $3.50, while keeping a Neutral rating.

The positive stance underscores the research firm’s confidence about the company’s prospects, backed by a multi-faceted growth strategy. Chief Executive Officer, Joel Anderson, has already reiterated that the focus is on driving sustainable, profitable top-line growth. Focus is on pursuing opportunities across core consumables, supplies, and services.

For 2026, Petco Health & Wellness Co management expects sales to remain flat or increase by up to 1.5% year over year with adjusted EBITDA of between $415 million and $430 million. According to UBS, the outlook is realistic, underpinned by the company’s growth strategy. However, as the company captures low-hanging fruit throughout 2025, UBS has warned that the path to efficiency gains would be difficult.

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.