PetSmart, Inc. (PETM): Throw Me a Bone

On the diagnostic side, there isn’t a company better equipped to help veterinarians diagnose bone and organ disease, or help veterinarians improve the efficiency of their software, than IDEXX Laboratories, Inc. (NASDAQ:IDXX). From small diagnostic analyzers to high-tech digital imagery and even consultation calls, IDEXX Laboratories, Inc. (NASDAQ:IDXX) does it all for owners and veterinarians. The best part is that the company’s companion diagnostics make up the bulk (83%) of its revenue, so the chance of IDEXX Laboratories, Inc. (NASDAQ:IDXX) seeing a slowdown in demand appears pretty minimal.

Let’s also not forget about the physical surgical and veterinary centers themselves. VCA Antech Inc (NASDAQ:WOOF), for instance, operates more than 600 hospitals around the U.S., as well as 55 diagnostic laboratories. Like PetSmart, Inc. (NASDAQ:PETM), VCA Antech Inc (NASDAQ:WOOF) hasn’t seen a decline in revenue in any of the past 10 years, growing sales by 212% over that timespan thanks to growth in services rendered, ample pricing power, and strong ancillary sales of premium food and vitamins from its hospitals and veterinary centers.

Four paws of approval
As pet ownership increases in number, the above names should only be expected to see an increase in business and profits. Regardless if you’re a pet owner yourself, the bond between pets and people is undeniably growing stronger, which should create a great investment opportunity over the long run.

The article This Family Member Is the Key to Big Investment Gains originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool recommends PetSmart and VCA Antech.

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