Pet care stocks are incredibly effective at diversifying investment portfolios, taking advantage of the steady growth of the pet care industry. The expansion of the sector is evident. In fact, for the 65.1 million dog-owning households in the US, global pet food sales totaled $133.9 billion. This trend highlights the growing focus on pet nutrition and health care. Plus, it positions pet care stocks as profitable bets in the investment landscape.
Also boosting this investment scenario is the impressive growth of the pet care market. Currently valued at around $246.6 billion, the market is on track to grow significantly. Projections suggest it could climb to $368.8 billion by 2030. This growth trajectory suggests that companies within this sector are poised for continued prosperity.
So, given these dynamics, the timing seems opportune for investors to consider some of the top pet care stocks. With pet care continuing to expand, these stocks offer investors a unique blend of stability and growth potential.
Zoetis (ZTS)
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Zoetis (NYSE:ZTS), a global leader in animal health, is committed to improving pet health with innovative products.
A major success for the company was Simparica Trio. It is a canine oral treatment effective against sarcoptic and demodectic mange. And, it has been approved in Australia and Canada. This success strengthens the ZTS portfolio and claims of its core products in key global markets.
Financially, Zoetis’ performance in its most recent quarter underscores its strong market position. The company reported a 7% increase in revenue year over year (YOU), totaling $2.2 billion. And, that amount was accompanied by a 13% increase in net income to $596 million. Reflecting this strong performance, Zoetis updated its full-year 2023 revenue guidance to a range of $8.47 billion to $8.55 billion.
Finally, the market is responding positively to Zoetis’ financial development and performance. Analysts from TipRanks assign ZTS stock a strong buy, with a potential upside of 12.8%. This rating reflects investor confidence in Zoetis’ continued growth and value delivery, making it an attractive investment choice.
Chewy (CHWY)
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Chewy (NYSE:BLOW UP), a leading online retailer of pet products, is expanding its range with innovative items such as pet tracking tools and automatic feeders.
These new offerings are designed to simplify pet care for owners. Further expanding its services, Chewy is launching “Chewy Vet Care” in South Florida next year, with plans for more locations by 2024. Specifically, this initiative will provide comprehensive veterinary services, including routine check-ups, urgent care, and surgeries.
In addition, Chewy’s recent performance indicates a bright future. Despite some challenges, the company reported significant growth in both its top and bottom lines. With net sales reaching $2.74 billion, marking an 8.2% increase YOY, and adjusted EBITDA rising to $82.1 million, Chewy demonstrated a solid financial trajectory. Also, its revenue growth of 12.56% exceeds the sector median of 5.3% by 135.3%, a testament to the company’s long-term growth potential.
Freshpet (FRPT)
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Freshpet (NASDAQ:FRPT), known for its fresh pet foods in the United States, Canada, and Europe, experienced significant changes this year.
Overcoming past challenges, its stock is up an impressive 62% year to date (YTD). This growth reflects strong confidence in Freshpet’s future, a sentiment echoed by insiders. On August 24, Director Walter N. George notably purchased 1,000 shares of FRPT, indicating bullish optimism on the company’s trajectory.
Recently, the company’s financial performance underscores its growing presence in the market. Freshpet reported a significant 32.6% net sales growth YOY for the third quarter, reaching $200.6 million. The company efficiently manages input and logistics costs while maintaining high quality standards, leading to impressive margin improvements.
Furthermore, FRPT boasts a large cash reserve of $338 million this quarter. This financial stability, along with significant growth in volume and market penetration, puts Freshpet on a solid path for future expansion and makes it an outstanding choice among pet care stocks.
As of the date of publication, Muslim Farooque does not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writers, subject to InvestorPlace.com’s Publishing Guidelines.
