Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

PetSmart, Inc. (PETM) Hasn’t Gone to the Dogs: Target Corporation (TGT), Wal-Mart Stores, Inc. (WMT)

Target Corporation (NYSE:TGT) does look tempting though. The retailer reported mixed Q4 results, a result of expansion efforts in Canada. But the company is optimistic for 2013. Target Corporation (NYSE:TGT) expects adjusted EPS of $4.85 to $5.05, ahead of analysts’ expectation of $4.40 for fiscal 2013. Deutsche Bank says the stock is undervalued and raised the stock to a buy after the March earnings report. Shares trade at modest P/E of 14.66 and yield a decent $2.17. The stock remains a favorite among mutual funds and other market institutions.

Wal-Mart Stores, Inc. (NYSE:WMT) also appears attractive. The company recently reported EPS that were up 10.6% from the same year ago period, and increased its dividend. Sales are growing both here and abroad. Of particular note was that the Bentonville, AK based company gained market share for food, consumables, health, wellness and over-the-counter items, as well as entertainment items and toys.

No denying these two mass retailers look like good bets, but investors who look at PetSmart, Inc. (NASDAQ:PETM) are not barking up the wrong tree.

With some 1,200 stores in the United States and Canada, PetSmart is the top dog in its industry. The company offers more than 10,000 products in stores and on its website. Stores have boarding facilities, provide grooming services and offer obedience training. Through pet hospital operator Medical Management International, which PetSmart owns 20%, veterinary services are available in roughly 800 shops.

Revenue for the pet industry is projected to remain strong through at least 2017, according to the APPA. Also expected to grow is the number of pet owing households, their wallets and their willingness to spend money on a pet. That is simply dog gone dandy, the cat’s meow, and good news for PetSmart, Inc. (NASDAQ:PETM).

The article PetSmart Hasn’t Gone to the Dogs originally appeared on Fool.com and is written by Diane Alter.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.