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.
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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.
8. Central Garden & Pet Company (NASDAQ:CENT)
Number of Hedge Fund Holders: 23
Central Garden & Pet Company (NASDAQ:CENT) is one of the best pet stocks to buy according to hedge funds. Central Garden & Pet Company (NASDAQ:CENT) has released several updates since the beginning of the year. Most recently, the company announced on February 17 that its Board of Directors authorized an increase in its stock repurchase program under which it is authorized to purchase up to an additional $100 million of the company’s common stock and Class A common stock. Central Garden & Pet Company (NASDAQ:CENT) stated that the acquisition of its common stock at the time appears beneficial to both the company and its stockholders, as management considers the market price of its shares to be currently undervalued.
In another development, Central Garden & Pet Company (NASDAQ:CENT) announced on February 12 the appointment of Kay M. Schwichtenberg to its Board of Directors, effective March 1, 2026. Central Garden & Pet Company (NASDAQ:CENT) also released its fiscal Q1 2026 financial results on February 4, with net sales for the quarter reaching $617 million compared to $656 million in fiscal Q1 2025. The company delivered fiscal Q1 2026 GAAP diluted EPS of $0.11 and non-GAAP diluted EPS of $0.21, compared with $0.21 a year ago, and stated that gross margin expanded by 110 basis points to 30.9%, compared with 29.8%, driven by improved productivity. Non-GAAP gross margin was 30.8%.
Central Garden & Pet Company (NASDAQ:CENT) engages in the garden and pet industries in the US, with its operations divided into two segments: Pet and Garden.
7. Petco Health and Wellness Company Inc. (NASDAQ:WOOF)
Number of Hedge Fund Holders: 25
Petco Health and Wellness Company Inc. (NASDAQ:WOOF) is one of the best pet stocks to buy according to hedge funds. Evercore ISI cut the price target on Petco Health and Wellness Company Inc. (NASDAQ:WOOF) to $3 from $4 on February 3, maintaining an In Line rating on the shares and telling investors that it adjusted price targets among its Retail Broadlines & Hardlines coverage.
The rating update came after Petco Health and Wellness Company Inc. (NASDAQ:WOOF) announced the successful closing of the previously announced long-term debt refinancing on February 2, along with the transition of Glenn Murphy, Executive Chairman of Petco, to Chairman of the Board of Directors, effective February 1.
Petco Health and Wellness Company Inc. (NASDAQ:WOOF) also announced on January 12 the launch of a debt refinancing transaction to extend maturities, and reaffirmed its guidance for fiscal Q4 and full year 2025 ending January 31, 2026. The company stated that it intends to refinance $1.5 billion of its current term loan outstanding, subject to market and other conditions, adding that it can provide no assurances that it will complete the refinancing in whole or in part. It also reaffirmed its guidance for net sales and adjusted EBITDA for fiscal Q4 and full year 2025.
Petco Health and Wellness Company Inc. (NASDAQ:WOOF) provides pet health and wellness services and has operations across the U.S., Mexico, and Puerto Rico. The company also offers online resources for pet health and wellness.
6. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Hedge Fund Holders: 26
Elanco Animal Health Incorporated (NYSE:ELAN) is one of the best pet stocks to buy according to hedge funds. On January 30, BofA raised the price target on Elanco Animal Health Incorporated (NYSE:ELAN) to $28 from $25 while maintaining a Buy rating on the shares. The firm told investors that it raised its price target on the stock heading into the fiscal Q4 earnings season to reflect stronger execution and operational results.
In another development, UBS raised the price target on Elanco Animal Health Incorporated (NYSE:ELAN) to $30 from $27 on January 29 and reaffirmed a Buy rating on the shares. The stock also received a rating update from Piper Sandler on January 22, with the firm upgrading Elanco Animal Health Incorporated (NYSE:ELAN) to Overweight from Neutral and raising the price target to $30 from $24.
After attending the VMX conference, the firm stated that it believes the company “is making some serious inroads” with corporate groups, with the corporate channel representing a new driver for Elanco Animal Health Incorporated (NYSE:ELAN). In terms of pricing and Befrena, the firm found little pushback to the idea that the company will raise prices on its core franchise.
Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company that delivers services and products that prevent and treat disease in pets and farm animals. Its diverse portfolio serves animals across various species, primarily cats, dogs, cattle, swine, poultry, and sheep.
5. Trupanion, Inc. (NASDAQ:TRUP)
Number of Hedge Fund Holders: 26
Trupanion, Inc. (NASDAQ:TRUP) is one of the best pet stocks to buy according to hedge funds. On February 13, Stifel cut the price target on Trupanion, Inc. (NASDAQ:TRUP) to $35 from $38 while maintaining a Hold rating on the shares. The same day, Piper Sandler also revised the price target on the stock to $45 from $60 while keeping an Overweight rating on the shares. The firm told investors that the company beat both its and the Street’s estimates on earnings, along with the Street’s on revenues, with loss ratios at a record and retention further experiencing improvement. It added that there was a seasonal deceleration, which typically occurs due to weather and holiday-related disruptions when moving to fiscal Q4 from fiscal Q3.
Piper further stated that it believes inventors may focus on deceleration in revenue growth due to the current overall focus on companies involved with product distribution and the role of AI disruption in their business in the future. A lower rate of revenue growth does not help dislodge this notion, according to the firm.
Trupanion, Inc. (NASDAQ:TRUP) provides medical insurance for cats and dogs. The company’s operations are divided into the Subscription Business and Other Business segments, with the Subscription Business segment involved in the monthly subscriptions of pet medical insurance, while the Other Business segment covers organizations or companies choosing to offer medical insurance for dogs and cats as a benefit to their members or employees.
4. Freshpet, Inc. (NASDAQ:FRPT)
Number of Hedge Fund Holders: 37
Freshpet, Inc. (NASDAQ:FRPT) is one of the best pet stocks to buy according to hedge funds. On February 4, Piper Sandler adjusted the price target on Freshpet, Inc. (NASDAQ:FRPT) to $87 from $80 and maintained an Overweight rating on the shares. According to the firm, Freshpet, Inc. (NASDAQ:FRPT) is likely a beneficiary of stronger middle- and high-income consumers’ tax savings and elevated 2026 refunds. If the company benefits from higher tax refunds/lower withholding, as it anticipates, the firm sees this as a notable catalyst for revenue growth acceleration in 2026.
The rating update came the same day Freshpet, Inc. (NASDAQ:FRPT) announced the appointment of John O’Connor as Chief Financial Officer, effective February 9, 2026, and Ana Lopez as Senior Vice President of Supply Chain, effective February 2, 2026. Management reported that Mr. O’Connor succeeds Ivan Garcia, who will continue with the Company as Senior Vice President of Finance. Mr. O’Connor will report to Chief Executive Officer Billy Cyr, and Ms. Lopez will report to Chief Operating Officer Nicki Baty.
In a separate development, Freshpet, Inc. (NASDAQ:FRPT) received a rating update from Wells Fargo on January 26, with the firm lifting the price target on the stock to $82 from $70 and maintaining an Overweight rating on the shares.
Freshpet, Inc. (NASDAQ:FRPT) manufactures, markets, and distributes packaged food and treats for pets. Its products include a blend of vegetables, fresh meat, and fruits farmed locally. The company’s products include Deli Fresh Grain Free Chicken Recipe for Dogs, Ocean Whitefish Recipe for Cats, Joy Turkey and Apple Bites Treats, Nature’s Fresh Grain Free Chicken Recipe for Cats, and more.
3. Tractor Supply Company (NASDAQ:TSCO)
Number of Hedge Fund Holders: 46
Tractor Supply Company (NASDAQ:TSCO) is one of the best pet stocks to buy according to hedge funds. Guggenheim reaffirmed a Buy rating on Tractor Supply Company (NASDAQ:TSCO) on February 9 with a price target of $65.00. The stock also received a rating update from UBS on January 30, which cut the price target on Tractor Supply Company (NASDAQ:TSCO) to $55 from $57 and reaffirmed a Neutral rating on the shares.
The same day, TD Cowen also cut the price target on Tractor Supply Company (NASDAQ:TSCO) to $53 from $55 while reiterating a Hold rating on the shares. The firm told investors that a tough backdrop is driving comps and margin pressure while newer initiatives scale. It added that while softer fiscal Q4 results were expected, weak comps and GM pressure were negative call-outs.
Piper Sandler also lowered the price target on Tractor Supply Company (NASDAQ:TSCO) on January 30 to $59 from $67 and maintained an Overweight rating on the shares. The firm stated that it updated the rating after a disappointing fiscal Q4 that missed consensus on comparable sales, EPS, and margin, with the company also guiding 2026 below Wall Street expectations and considerably below its long-term comparison guide of 3%-5%. These trends were attributed to a continually pressured customer wallet and discretionary softness. However, Piper added that it believes Tractor Supply Company (NASDAQ:TSCO) can get back to a 3%-plus comp over time, and doesn’t believe the company is losing share.
Tractor Supply Company (NASDAQ:TSCO) operates farm and ranch stores, with a focus on supplying the lifestyle needs of small businesses, tradesmen, and recreational farmers and ranchers. The company’s product categories include pets, small animals, equine, hardware, livestock, and several others, and it operates retail stores under the following names: Petsense, Tractor Supply Company, and Orscheln Farm & Home.
2. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Number of Hedge Fund Holders: 55
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is one of the best pet stocks to buy according to hedge funds. On February 9, Piper Sandler cut the price target on IDEXX Laboratories, Inc. (NASDAQ:IDXX) to $750 from $775 while maintaining a Neutral rating on the shares. The rating update came after the company’s quarterly results, with the firm telling investors that its updated price target primarily takes into account its updated multiple and rolling forward of estimates to 2027 from 2026.
Barclays also revised the price target on IDEXX Laboratories, Inc. (NASDAQ:IDXX) on February 5, bringing it down to $800 from $850 while keeping an Overweight rating on the shares. It updated the company’s model after the fiscal Q4 report, stating that the fiscal 2026 outlook “underwhelmed.”
In another development, UBS cut the price target on IDEXX Laboratories, Inc. (NASDAQ:IDXX) to $730 from $750 on February 3 and maintained a Neutral rating on the shares. It stated that the print exhibited mixed signals, with early benefits from rising diagnostic use among aging “pandemic puppies” and pricing strength helping maintain a premium. However, fiscal Q4 also raised concerns regarding muted fiscal Q1 growth, slower inVue placements in Year 2, and a softer 2026 gross margin outlook. UBS added that risk/reward appears balanced pending clearer evidence that recent pricing premiums are sustainable, with macro headwinds and fewer near-term margin expansion drivers.
IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products and services for the veterinary, animal, livestock and poultry, dairy, and water testing markets. It operates through the following segments: Companion Animal Group (CAG), Water Quality Products (Water), Livestock, Poultry, and Dairy (LPD), and Other.
1. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 72
Zoetis Inc. (NYSE:ZTS) is one of the best pet stocks to buy according to hedge funds. Barclays reaffirmed a Hold rating on Zoetis Inc. (NYSE:ZTS) on February 18, setting a price target of $136.00. The rating update came after Zoetis Inc. (NYSE:ZTS) announced fiscal Q4 and full year 2025 results on February 12, reporting revenue of $2.4 billion for fiscal Q4 2025 and reflecting a 3% growth compared to fiscal Q4 2024. Revenue for the quarter rose 4% compared to the prior year period on an organic operational basis, and net income for the quarter reached $603 million, or $1.37 per diluted share, an increase of 4% and 6%, respectively, on a reported basis.
Zoetis Inc. (NYSE:ZTS) further reported $9.5 billion in revenue for the full year 2025, reflecting a growth of 2% compared to full year 2024. On an organic operational basis, revenue for the full year 2025 rose 6%, and net income for the year was $2.7 billion, or $6.02 per diluted share, an increase of 8% and 10%, respectively, on a reported basis.
Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health. Its operations are divided into the United States and International segments, with each segment boasting a diversified product portfolio, including vaccines, parasiticides, pain and sedation, animal health diagnostics, and more. The company specializes in products across eight core species: companion animals (dogs, cats, and horses), cattle, swine, livestock (sheep and fish), and poultry.
While we acknowledge the potential of ZTS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZTS and that has 100x upside potential, check out our report about this cheapest AI stock.
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