Petmed Express Inc (PETS) is a leading pet pharmacy that offers prescription and non-prescription pet medications, and other health products direct to the consumer. The stock is trading lower by 12.4% to $30.40 a share after reporting earnings. Obviously, the street was not impressed by the earnings report. Petmed Express reported Q3 (Dec) earnings of $0.38 per share, in-line with the two analyst estimates of $0.38; revenues rose 10.0% year/year to $65.9 million vs the $63.81 million. The stock is now trading below its 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and often signals further declines ahead for the stock.
The next major support level for Petmed Express (PETS) stock will be around the $26.00 level. This is where the stock has a major retrace level which should be solid support. There is also the 100-week moving average at $26.06 level which should act as major support for the stock when tested. Since the stock trades less than a million shares a day on average I would play Petmed Express (PETS) stock with call options when the stock tests this support level.
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