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.
While we acknowledge the potential of TEVA as an investment, 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 TEVA and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Pet Care Stocks to Buy for Consistent Recurring Revenue.
Disclosure: None. Follow Insider Monkey on Google News.
