11 Best Buy-the-Dip Stocks to Buy Now

4. Freshpet, Inc. (NASDAQ:FRPT)

Closing Price as on April 28: $73.4

52-week Low: $72.195

Number of Hedge Fund Holders: 40

Freshpet, Inc. (NASDAQ:FRPT) is engaged in manufacturing, distributing, and marketing natural fresh meals and treats for dogs and cats. Benchmark Co. analyst Todd Brooks maintained the bullish stance on the company’s stock, giving a “Buy” rating on April 10 and a price target of $140. The analyst rating is backed by a combination of factors impacting the company’s current and future performance. The analyst lauded Freshpet, Inc. (NASDAQ:FRPT)’s healthy market position in the fresh dog food segment. Furthermore, the analyst’s rating is aided by the company’s dominant market share and growth potential in the US dog food market.

Freshpet, Inc. (NASDAQ:FRPT)’s low exposure to tariff-related costs, as well as historical correlation between advertising and higher website traffic, are regarded as positive indicators for future growth. In Q4 2024, its net sales increased 22.0% to $262.7 million compared to $215.4 million for the prior year period, mainly due to volume gains of 20.7%. For FY 2025, Freshpet, Inc. (NASDAQ:FRPT) expects net sales of between $1.18 billion – $1.21 billion, an increase of 21% – 24% from 2024. Furthermore, it anticipates adjusted EBITDA of at least $210 million.

Wasatch Global Investors, an asset management company, released its Q1 2025 investor letter. Here is what the fund said:

“Another detractor was Freshpet, Inc. (NASDAQ:FRPT), a company that sells fresh, refrigerated meals and treats for dogs and cats. Revenue growth was a little lower than the market expected in Freshpet’s most recently reported quarter, but we believe the stock-price reaction was overdone. We spoke with management after the earnings call and have done our own analysis of Freshpet’s revenue streams. Based on our own analysis, we believe the company’s growth over the next several years will be far more durable than the market expects. Additionally, as the company scales, we believe gross margins will increasingly benefit from more resilient and predictable demand, leading to more efficient manufacturing.”