Why is Central Garden & Pet Company (CENT) One of the Best Pet Stocks to Buy According to Hedge Funds?

Central Garden & Pet Company (NASDAQ:CENT) is one of the best pet stocks to buy according to hedge funds. Central Garden & Pet Company (NASDAQ:CENT) has released several updates since the beginning of the year. Most recently, the company announced on February 17 that its Board of Directors authorized an increase in its stock repurchase program under which it is authorized to purchase up to an additional $100 million of the company’s common stock and Class A common stock. Central Garden & Pet Company (NASDAQ:CENT) stated that the acquisition of its common stock at the time appears beneficial to both the company and its stockholders, as management considers the market price of its shares to be currently undervalued.

Is Central Garden & Pet Company (CENT) the Best Under-the-Radar Stock to Buy Now?

In another development, Central Garden & Pet Company (NASDAQ:CENT) announced on February 12 the appointment of Kay M. Schwichtenberg to its Board of Directors, effective March 1, 2026. Central Garden & Pet Company (NASDAQ:CENT) also released its fiscal Q1 2026 financial results on February 4, with net sales for the quarter reaching $617 million compared to $656 million in fiscal Q1 2025. The company delivered fiscal Q1 2026 GAAP diluted EPS of $0.11 and non-GAAP diluted EPS of $0.21, compared with $0.21 a year ago, and stated that gross margin expanded by 110 basis points to 30.9%, compared with 29.8%, driven by improved productivity. Non-GAAP gross margin was 30.8%.

Central Garden & Pet Company (NASDAQ:CENT) engages in the garden and pet industries in the US, with its operations divided into two segments: Pet and Garden.

While we acknowledge the potential of CENT to grow, 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 CENT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.