A Big Upgrade for PetMed Express
By
Dave Mock
August 29, 2008
|
Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the firms behind them -- so individuals can make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 115,000 members, many of whom demonstrate better investing insight than published analysts do.
Enough top-performing CAPS investors have turned bullish on pet pharmacy PetMed Express (Nasdaq: PETS) recently to upgrade it from a four-star rank, which it had held for several months, back to the highest possible rating of five stars. A total of 532 members have weighed in on PetMed Express, with many of them offering analysis and commentary explaining the recent optimism.
While the thought of millions of dollars blown on sock puppets may still taint investors’ view of pet-related companies, PetMed Express is more like sleeper companies Middleby (Nasdaq: MIDD) (which makes commercial ovens) and Amedisys (Nasdaq: AMED) (a home health and hospice services firm). Each provides necessary products and services to a large -- albeit boring -- potential market.
Investors see pet medications falling into that category; the worldwide market for animal health care is a growing, multibillion-dollar industry. PetMed Express and other animal health-care stocks like PetSmart (Nasdaq: PETM) and VCA Antech (Nasdaq: WOOF) all stand to benefit from increasing pet ownership (the number of pet owners reached new highs in 2007). PetMed's fiscal first quarter shows that the company is grabbing its share, with a 7% rise in profits that beat analysts’ expectations.
Many CAPS members also like PetMed Express for its recession-proof qualities. While consumers in a pinch might think twice about discretionary spending on a new flat screen from Best Buy (NYSE: BBY) -- or even that seasonal fling via a flight on UAL's (Nasdaq: UAUA) United Airlines, where they will be nickeled and dimed for extras that were once included -- most people won’t hesitate to drop serious cash on a sick pet. As such, more than 97% of the CAPS members rating PetMed Express expect it to outperform the market.
To see what the very best CAPS analysts are saying now about PetMed Express -- as well as other winning stocks they are picking -- head on over to CAPS and have a look.
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