Gap, Ollie's, Petco, and Five Below Shares Are Falling, What You Need To Know

What Happened?

A number of stocks fell in the afternoon session after markets raised concerns that surging gas prices would squeeze household budgets, potentially leading to a pullback in discretionary spending. 

With gas prices climbing to their highest levels since 2022, the day-to-day cost of living became a significant issue for many consumers, particularly lower- and middle-income families. This pressure on household finances could force a reduction in spending on non-essential items, creating a headwind for the retail sector. 

Also, University of Michigan consumer sentiment hit 47.6 in April, the lowest reading in the survey's 74-year history, below Great Recession and pandemic lows. Sentiment at 47.6 signals that households are already under stress.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Apparel Retailer company Gap (NYSE:GAP) fell 7.8%. Is now the time to buy Gap? Access our full analysis report here, it’s free.
• Discount Retailer company Ollie's (NASDAQ:OLLI) fell 8.7%. Is now the time to buy Ollie's? Access our full analysis report here, it’s free.
• Specialty Retail company Petco (NASDAQ:WOOF) fell 9.2%. Is now the time to buy Petco? Access our full analysis report here, it’s free.
• Discount Retailer company Five Below (NASDAQ:FIVE) fell 6.9%. Is now the time to buy Five Below? Access our full analysis report here, it’s free.

Zooming In On Petco (WOOF)

Petco’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 25 days ago when the stock gained 3.3% on the news that RBC Capital reaffirmed its 'Outperform' rating on the stock and expressed increased confidence in the company's turnaround efforts. 

The investment firm's positive stance came after hosting virtual meetings with Petco's leadership team, including its CEO and CFO. 

Following the discussions, RBC Capital stated it walked away with greater conviction in the company's turnaround strategy and its financial model. The firm maintained its $4.00 price target and noted that it believed both Petco's financial numbers and its stock valuation had room to move higher.

Petco is down 10.4% since the beginning of the year, and at $2.56 per share, it is trading 41.4% below its 52-week high of $4.36 from July 2025. Investors who bought $1,000 worth of Petco’s shares 5 years ago would now be looking at only $104.67.

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