7 Best Pet Care Stocks to Buy for Consistent Recurring Revenue

In this article, we will discuss 7 Best Pet Care Stocks to Buy for Consistent Recurring Revenue.

The most durable cash flow in consumer markets may not come from subscriptions or software; it may come from the family dog. That’s the quietly compelling thesis behind pet care stocks, a category drawing sustained attention from defensive-minded funds and long-term institutional investors seeking recession-resistant revenue in an increasingly uncertain macro environment.

The investment case is being driven by behavior that has fundamentally changed. Pet ownership surged through the pandemic and has never normalized lower, while pet owners across generations, particularly millennials and Gen Z, increasingly treat animals as family members rather than property, supporting premiumization across food, healthcare, and services. This shift underpins a business model built on genuine recurring revenue, i.e., routine veterinary visits, prescription diets, preventive medications, and grooming subscriptions that customers do not meaningfully cut even when budgets tighten. Data from Grand View Research projects the global pet care market to grow from approximately $320 billion in 2024 at a CAGR of around 6%–8% through 2030, driven by rising humanization trends, expanding pet insurance adoption, and growth in specialty veterinary services. Another analysis highlighted by PR Newswire points to accelerating momentum in pet health diagnostics and telehealth platforms as owners seek earlier intervention and more personalized care for aging pet populations.

At the same time, veterinary and animal health research underscores how advances in diagnostics, oncology treatments, and chronic disease management are extending pet lifespans and increasing the average lifetime spent per animal. This dynamic is reinforcing the long-term durability of the sector, as longer-living pets translate directly into more years of recurring veterinary, pharmaceutical, and nutritional spend per household.

With this context in mind, here are pet care stocks to buy for consistent recurring revenue.

Our Methodology

We used stock screeners to identify pet care stocks with a short percentage of shares outstanding of less than 4%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding as of May 29, 2026.

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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

7 Best Pet Care Stocks to Buy for Consistent Recurring Revenue

7. Zoetis Inc. (NYSE:ZTS)

Short Percentage of Shares Outstanding: 3.21% 

On May 27, Argus downgraded Zoetis Inc. (NYSE:ZTS)  from Buy to Hold following a sharp decline in the company’s share price. The research firm pointed to a steep 22% single-day drop in the stock, followed by additional weakness, as evidence of growing investor concerns about the company’s near-term growth trajectory. According to the analyst, the market reaction reflected diminishing confidence in Zoetis’ ability to sustain the level of expansion investors had previously expected, prompting a more cautious stance on the shares despite the company’s established position in the animal health industry.

Earlier, on May 22, Stifel lowered its price target on Zoetis Inc. (NYSE:ZTS) to $95 from $105 while maintaining a Hold rating. The firm acknowledged that the company’s updated 2026 guidance indicates business conditions could gradually improve over time, signaling management’s expectation for a recovery in operating performance as the year progresses. However, Stifel also noted that competitive pressures are likely to remain elevated across several key markets in the near term, creating challenges that could weigh on growth. Even so, the revised outlook suggests the company sees opportunities to strengthen its performance despite an increasingly competitive environment.

Zoetis Inc. (NYSE:ZTS) is an animal health company headquartered in Parsippany, New Jersey, and was founded in 1952. Originally established as a division of Pfizer before becoming an independent public company in 2013, Zoetis develops and commercializes a broad portfolio of medicines, vaccines, diagnostics, and genetic testing solutions for livestock and companion animals. The company plays a significant role in the pet care market by providing veterinarians and pet owners with innovative treatments, preventive products, and diagnostic tools designed to improve animal health and well-being.

6. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Short Percentage of Shares Outstanding: 2.91% 

On June 8, Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced new clinical and real-world findings supporting the effectiveness of Austedo and Austedo XR in the treatment of tardive dyskinesia. Data from the real-world IMPACT-TD study showed that patients with mild symptoms experienced measurable reductions in involuntary movement scores after three months of therapy, accompanied by improvements in their ability to perform everyday activities. The company also reported results from the three-year RIM-TD study, which demonstrated that more than half of patients responded to treatment by week 15, while an additional 23% achieved clinically meaningful improvement after that point. Management emphasized that these findings reinforce Teva’s commitment to advancing the diagnosis, treatment, and long-term management of tardive dyskinesia through evidence-based research and innovation.

Earlier, on June 4, Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced the European launch of Ahzantive, a biosimilar version of Eylea, marking another step in the expansion of its biosimilars business. The company began rolling out Ahzantive pre-filled syringes across several major European markets, including France, Germany, Spain, and the Netherlands. The launch broadens Teva’s biosimilar portfolio and enhances its position in the ophthalmology market, where healthcare systems continue to seek more affordable treatment alternatives. By expanding access to lower-cost therapies, Teva aims to strengthen its competitive presence in a growing segment of the pharmaceutical industry while diversifying its revenue opportunities.

Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a global pharmaceutical company headquartered in Israel and founded in 1901. The company specializes in generic medicines, biosimilars, and specialty pharmaceuticals, serving patients across numerous therapeutic areas worldwide. Although primarily focused on human healthcare, Teva’s products also influence animal health, as many of its approved medications and antibiotics are commonly prescribed by veterinarians to treat a variety of conditions in companion animals and livestock.

5. IDEXX Laboratories, Inc. (NASDAQ:IDXX)

Short Percentage of Shares Outstanding: 2.76% 

On May 26, IDEXX Laboratories, Inc. (NASDAQ:IDXX) announced the expansion of its Fecal Dx antigen testing platform to include detection of taeniid tapeworm species, including Taenia and Echinococcus. The enhanced testing capability is designed to identify a broader range of intestinal parasite infections and has been shown to detect up to twice as many infections earlier than fecal flotation alone. Beginning in late June, IDEXX Reference Laboratories customers across the United States and Canada will automatically receive taeniid tapeworm detection within Fecal Dx antigen testing panels and profiles at no additional cost, further strengthening the value of the company’s diagnostic offerings.

Previously, on May 19, IDEXX Laboratories, Inc. (NASDAQ:IDXX) announced that its SDMA renal biomarker will be integrated into Catalyst CLIPs, making comprehensive kidney function evaluation a standard component of the most used point-of-care chemistry profiles. Available to customers in the United States and Canada beginning in June, the integration is expected to improve access to advanced kidney health assessments and enable veterinarians to identify kidney function decline earlier without changing existing clinical workflows. Since launching the IDEXX SDMA Test in 2015, the company has performed approximately 119 million SDMA tests globally, demonstrating strong adoption and reinforcing the biomarker’s importance in veterinary kidney disease management.

Founded in 1983 and headquartered in Westbrook, Maine, IDEXX Laboratories, Inc. (NASDAQ:IDXX) deals in veterinary diagnostics, software, and water microbiology. It provides veterinarians with advanced in-clinic diagnostic instruments, rapid testing kits, and reference laboratory services that enable them to provide immediate, high-quality medical care to pets.

4. PetMed Express, Inc. (NASDAQ:PETS)

Short Percentage of Shares Outstanding: 2.48% 

On June 2, PetMed Express, Inc. (NASDAQ:PETS) reported fourth-quarter revenue of $42.82 million, compared with $50.76 million in the prior-year period. Despite the year-over-year decline, management highlighted a sequential increase in quarterly net sales, signaling improving business momentum. Interim Chief Executive Officer and President Leslie Campbell stated that throughout 2026, the company focused on stabilizing its core operations and strengthening the foundation for long-term value creation through strategic, operational, and technology initiatives that reduced costs and enhanced efficiency. Management also emphasized plans to improve customer retention, expand business-to-business relationships, and leverage membership programs and white-label pharmacy fulfillment services, including its recently announced Master Services Agreement with Rural King.

On April 22, PetMed Express, Inc. (NASDAQ:PETS) announced a strategic partnership with Rural King to launch a new pet pharmacy platform, broadening access to prescription medications, preventative treatments, and pet healthcare products across Rural King’s retail and digital channels. Under the agreement, PetMeds will provide the pharmacy infrastructure, licensed pharmacists, and e-commerce capabilities required to support the offering. Management noted that the partnership aligns with the company’s growth strategy by extending its pharmacy platform to millions of pet owners who rely on Rural King for farm, ranch, and pet care products, while further advancing its mission of making quality pet healthcare more accessible and affordable nationwide.

Founded in 1996 and headquartered in Delray Beach, Florida, PetMed Express, Inc. (NASDAQ:PETS) is an online pet pharmacy and health retailer. The company markets and delivers FDA and EPA-approved prescription medications, over-the-counter flea and tick treatments, supplements, and specialized foods directly to pet owners nationwide, making it among the best pet care stocks to buy for consistent recurring revenue.

3. Oil-Dri Corporation of America (NYSE:ODC)

Short Percentage of Shares Outstanding: 2.21% 

On June 8, Oil-Dri Corporation of America (NYSE:ODC) reported third-quarter revenue of $126.33 million, compared with $115.5 million in the prior-year period. President and CEO Daniel Jaffee highlighted that, following two quarters of difficult year-over-year comparisons, the company returned to growth with record third quarter consolidated net sales increasing 9%. Combined with disciplined expense management, the sales growth contributed to a 25% increase in net income despite ongoing inflationary pressures on the cost of goods sold. Management also noted that strong cash generation enabled the company to continue returning capital to shareholders and expressed confidence in achieving its annual plan and surpassing the previous year’s net income. However, geopolitical uncertainty and higher transportation and input costs remain potential headwinds.

On June 3, the board of directors of Oil-Dri Corporation of America (NYSE:ODC) approved a two-cent increase in the company’s quarterly cash dividend. The new dividend was raised to $0.225 per share of common stock and $0.168 per share of Class B stock, representing an approximate 10% increase for both share classes. The dividends will be payable on August 21 to shareholders of record as of August 7. In addition, the board authorized the repurchase of up to 500,000 shares of common stock, supplementing the shares already available under previous repurchase authorizations and demonstrating the company’s ongoing commitment to shareholder returns.

Founded in 1941 and headquartered in Chicago, Illinois, the Oil-Dri Corporation of America (NYSE:ODC) is a manufacturer of specialty sorbent products mined from specialty minerals. The company also produces widely used clay- and diatomaceous earth-based cat litter under major consumer brands like Cat’s Pride and Jonny Cat, alongside private-label offerings.

2. Aon plc (NYSE:AON)

Short Percentage of Shares Outstanding: 1.40% 

On June 16, UBS lowered its price target on Aon plc (NYSE:AON) to $360 from $385 while maintaining a Neutral rating on the stock. The adjustment reflects the firm’s updated expectations for the company amid changing market conditions and a reassessment of the broader operating environment. While UBS continues to view the shares as fairly valued relative to their current risk-reward profile, the firm acknowledged Aon’s established position within the insurance brokerage industry and its ability to navigate evolving market dynamics. The revised target underscores a more measured outlook but does not materially alter the company’s long-term strategic positioning.

A day earlier, on June 15, Piper Sandler reduced its price target on Aon plc (NYSE:AON) to $355 from $360 while reiterating an Overweight rating on the shares. The firm identified Aon as its weekly focus idea, highlighting the company’s resilience despite the challenging conditions facing insurance brokers. According to Piper Sandler, Aon is not entirely immune to industry headwinds, but it is expected to outperform many competitors due to the strength and diversity of its business model. The firm further described Aon as an attractive defensive investment within the sector, citing its ability to generate stable results and adapt to changing market conditions.

Founded in 1982, Aon plc (NYSE:AON) is a leading professional services firm headquartered in Dublin, Ireland. The company provides a broad range of risk management, insurance, and reinsurance brokerage, and human capital consulting services to clients worldwide. In addition to its core offerings, Aon works with insurance providers to make customizable pet insurance solutions available, helping pet owners manage costs associated with accidents, illnesses, and routine veterinary care.

1. Lemonade, Inc. (NYSE:LMND)

Short Percentage of Shares Outstanding: 0.01% 

On June 11, Lemonade, Inc. (NYSE:LMND) announced that its renters’ insurance product is now available in Montana, further expanding the company’s geographic footprint in the United States. Management stated that the launch aligns with Lemonade’s mission of simplifying the insurance experience through technology-driven solutions, providing Montana residents with easier access to renters insurance through the company’s digital platform. The expansion reflects Lemonade’s continued efforts to grow its customer base and increase market penetration across additional states.

On June 8, TD Cowen raised its price target on Lemonade, Inc. (NYSE:LMND) to $55 from $33 while maintaining a Hold rating on the shares. The substantial increase in the target price reflects a more favorable outlook on the company’s prospects and suggests improved confidence in its operational performance and growth trajectory, even as the firm remains neutral on the stock.

Founded in 2015 and headquartered in New York, NY, Lemonade, Inc. (NYSE:LMND) is a digital insurance company that utilizes artificial intelligence and behavioral economics to replace traditional brokers and paperwork with seamless online apps and automated claims. The company also offers specialized pet health insurance policies that cover diagnostics, procedures, and medications for dogs and cats.

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