Peter Lynch always said to buy what you know. We all love our pets and realize how expensive they are to care for. Matter of fact, many would treat their pet before themselves. The pet sector is growing rapidly and the stocks within this sector have been great performers. The best bet is to not only use these company’s services for your pets, but also add them to your portfolio as well.
The one-stop shop for everything pets
PetSmart, Inc. (NASDAQ:PETM) is the one place to go for everything pets. The company offers its pet products at 1,278 stores and online. The company also operates approximately 196 PetsHotels for boarding dogs and cats.
For the latest quarter, earnings rose 15% to $0.98 per share. Comparable store sales grew 3.5%. The company expects comparable store sales to continue growing at the 3% to 4% rate. Return on equity is an impressive 36% and the stock’s forward P/E is only 15.
As the economy continues to recovery, look for more pet owners to splurge on their pets and that will boost PetSmart, Inc. (NASDAQ:PETM). The company will also benefit in that it has expanded beyond being just a traditional pet store and now offers services such as grooming and medical care.
The go-to pharmacy for your pets
Petmed Express Inc (NASDAQ:PETS) sells prescription and non-prescription medication for pets. The company has also branched into offering food, beds, crates, and other pet supplies.
In the company’s latest quarter, revenues were down 8.6% from the previous year as consumers purchased more generic medications. This was due mainly because prescriptions from Novartis AG (ADR) (NYSE:NVS) weren’t available. Novartis suspended production at its Nebraska production facility because of safety irregularities. Net income did rise, however, as margins were higher and operating costs lower. The company remains debt free and has $33.65 million in cash.
Petmed Express Inc (NASDAQ:PETS) is in the enviable position of not having any serious competitor. Consumers have found online medication purchases for their pets to be fast, convenient and cheaper than from a veterinarian. For income investors, the company pays an annual dividend of $0.60 per share for a yield of 4.5%. For investors, you get both growth and income by owning Petmed Express Inc (NASDAQ:PETS).
The animal hospital for your pets
VCA Antech Inc (NASDAQ:WOOF) is the leading animal healthcare company in the United States and Canada. The company operates in two segments – animal hospital and laboratory. At the end of last year, VCA Antech Inc (NASDAQ:WOOF) operated 609 animal hospitals and 55 veterinary diagnostic labs.