In this article, we will look at the 10 Best Pet Stocks to Buy According to Hedge Funds.
On February 12, Tom Lee of Fundstrat and Bitmine appeared on CNBC’s ‘Closing Bell’ to discuss the state of the markets and large themes moving stocks. He was of the view that stocks took a hit, partly due to the software downturn and the rotation out of the Mag 7 armies into the bullet makers for AI, along with a general risk-off as gold surged. However, the earnings have been delivered solidly according to him, with us getting good economic reports. Positioning has gotten risk-off enough that we can, maybe in a labored way, climb to 7,300, according to Lee.
Talking about whether we are appreciating enough how strong the earnings season has been, Lee thinks that the stocks haven’t reflected that, because we have had a huge beat, with a large percentage of companies beating. The trend can, however, be seen in small caps.
READ ALSO: 11 Best Natural and Organic Food Stocks to Buy Now and 12 Best Luxury Stocks to Buy Now.
He further stated that the earnings have been good, but the things that are affecting multiples are the ones causing the market to come in: AI, a new Fed chair, and potential war. Lee believes that the fundamental anchoring has been good, which means that the stocks eventually kind of re-anchor to that, resulting in us going higher. He is of the view that there are three key trades ahead: rotation back to the Mag 7, software $IGV bottoms, and crypto bottoms. He is not suggesting that these three items have happened yet, but we are around 90% of the way through that.
With these broader market trends in view, let’s narrow down and look at the best pet stocks to buy according to hedge funds.
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the best pet stocks and then selected the top 10 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 19.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Pet Stocks to Buy According to Hedge Funds
10. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Number of Hedge Fund Holders: 20
Spectrum Brands Holdings, Inc. (NYSE:SPB) is one of the best pet stocks to buy according to hedge funds. RBC Capital lifted the price target on Spectrum Brands Holdings, Inc. (NYSE:SPB) to $85 from $75 on February 6, maintaining an Outperform rating on the shares. The firm updated the price target on the stock after it reported mixed fiscal Q1 results, with in-line EBITDA and weaker-than-expected organic growth. Despite these trends and the continued headwinds experienced by the company, the firm stated that management maintained an optimistic tone.
The same day, Oppenheimer also lifted the price target on Spectrum Brands Holdings, Inc. (NYSE:SPB) to $85 from $75. The firm reaffirmed an Outperform rating on the shares, noting that the company’s fiscal Q1 revenue of $677 million beat its estimates of $674 million and the Street’s estimates of $668 million, with the trends driven primarily by pet care growth.
Spectrum Brands Holdings, Inc. (NYSE:SPB) also received a rating update from Canaccord on February 6. The firm raised the price target on the stock to $94 from $84, maintaining a Buy rating and telling investors that the company reported fiscal Q1 results with sales about 1% above consensus, adjusted EBITDA roughly 8% ahead, and adjusted EPS far exceeding expectations.
Spectrum Brands Holdings, Inc. (NYSE:SPB) is a global manufacturer of branded home essentials and consumer products, and has a global pet care segment. It offers small household appliances, lawn and garden products, home pest control products, and others. The company manufactures, sells, and markets its products across Europe, the Middle East and Africa, North America, Latin America, and Asia-Pacific.
9. Neogen Corporation (NASDAQ:NEOG)
Number of Hedge Fund Holders: 21
Neogen Corporation (NASDAQ:NEOG) is one of the best pet stocks to buy according to hedge funds. On January 28, Neogen Corporation (NASDAQ:NEOG) announced that it is voluntarily recalling all lots within expiry of Neogen®Vet HYCOAT® Hyaluronate Sodium Sterile Solution, for use in dogs, cats, and horses, to the veterinarian level. Manufactured by a third-party supplier, the product is distributed by the company.
Management reported that the recall was initiated because of a microbial contamination in certain lots of 10 mL/50 mg product vials, and that Neogen Corporation (NASDAQ:NEOG) received a series of reports of adverse events in horses following intra-articular injections of this product. This trend is inconsistent with its labeled, intended use, and the company’s investigation into the issue is ongoing. Neogen Corporation (NASDAQ:NEOG) further stated that it has not received reports of adverse events when used in a manner consistent with the labeled use, but out of an abundance of caution, it is also recalling the 2mL/20mg product vials and is proactively working with the FDA on this matter.
In a separate development, Neogen Corporation (NASDAQ:NEOG) reported a revenue of $224.7 million in its fiscal Q2 2026, down 2.8% year-over-year. Core growth rose 2.9% year-over-year, and the net loss reported for the quarter came up to $15.9 million, with an adjusted net income of $22.6 million.
Neogen Corporation (NASDAQ:NEOG) is involved in the manufacture, development, and marketing of food and animal safety products. The company’s operations are divided into the Food Safety and Animal Safety segments.
