3 Pet Industry Stocks Profiting from Animal Lovers

The number of animal lovers has increased significantly in recent years. People are adopting pets for emotional well-being, companionship, and social bonding, driving the growth of the pet industry. Also, with increasing demand for advanced healthcare products and personalized grooming services, the market will grow further.

Given the industry’s bright growth prospects, quality pet stocks Zoetis Inc. (ZTS), Chewy, Inc. (CHWY), and PetMed Express, Inc. (PETS) could be ideal additions to impressive profits.

The growing number of animal lovers and pet parents and rising efforts towards animal protection and care are driving the pet industry's market prospects. The pet market is developing rapidly with encouraging innovations that reflect shifting customer tastes and cultural changes.

In recent years, there has been an impressive surge in pet ownership, as more and more people domesticate animals for companionship or enjoyment, propelling the pet market's growth. This surge has also resulted in increased demands for high-quality pet foods, medicines, and online retail stores.

Also, trends of humanizing pets are driving the market's spending. People are willing to spend a substantial amount of money on pet care, grooming, and well-being. Spending growth in the pet industry is likely to reach 7% annually by 2030, which was projected at 2.5% for 2024 and 3.9% for 2025.

The pet care market is expected to be valued at $20.86 billion in 2025 and is projected to grow to $25.63 billion by 2030, exhibiting growth at a CAGR of 4.2%. Market growth is attributable to factors like evolving consumer preferences, the humanization of pets, and innovations in pet products and services.

Considering the industry's bright prospects, it could be wise to invest in fundamentally strong pet stocks such as ZTS, CHWY, and PETS.

Let’s discuss the fundamentals of these stocks in detail:

Zoetis Inc. (ZTS)

ZTS is in the international discovery, development, manufacture, and commercialization of animal health medicines, vaccines, and diagnostic products and services. It commercializes products primarily across species, including livestock and companion animals.

On December 12, 2024, ZTS’ Board of Directors declared a dividend of $0.50 per share for the first quarter of 2025, up 16% from the quarterly dividend rate paid in 2024. The dividend is payable on March 4, 2025, to all holders of record of its stock as of the close of business on January 21, 2025.

ZTS pays an annual dividend of $2, which translates to a yield of 1.14% at the current share price. Its four-year average dividend yield is 0.74%. Moreover, the company’s dividend payouts have increased at a CAGR of 18.7% over the past three years. Zoetis has raised its dividends for six consecutive years.

ZTS’ revenue increased 11% year-over-year to $2.39 billion during the third quarter that ended September 30, 2024. Its non-GAAP gross profit grew 11.4% from the year-ago value to $1.69 billion. Also, non-GAAP net income attributable to Zoetis totaled $716 million or $1.58 per share, indicating 13.8% and 16.2% growth from the prior year’s quarter, respectively.

Analysts expect ZTS’ revenue and EPS for the fourth quarter (ended December 2024) to increase 4.6% and 8.6% year-over-year to $2.31 billion and $1.35, respectively. The company surpassed the consensus revenue estimates in each of the trailing four quarters, which is impressive.

The stock has soared 7.4% over the past month and marginally over the past six months to close the last trading session at $175.67.

ZTS’ robust outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has a B grade for Quality, Stability, and Sentiment. Within the Medical - Pharmaceuticals industry, ZTS is ranked #20 of 149 stocks.

Click here to access additional ZTS ratings for Growth, Value, and Momentum.

Chewy, Inc. (CHWY)

CHWY engages in the pure play e-commerce business. The company delivers pet food and treats, pet supplies and pet medications, and other pet-health products, along with pet services for dogs, cats, fish, birds, small pets, horses, and reptiles via its retail websites and mobile applications.

CHWY’s trailing-12-month Return on Common Equity of 130.34% is 1111% higher than the industry average of 10.76%. Likewise, the stock’s trailing-12-month ROTC and ROTA of 7.31% and 13.59% are considerably higher than the respective industry averages of 6.23% and 3.74%.

For the third quarter that ended October 27, 2024, CHWY’s net sales rose 4.8% from the prior-year quarter to $2.88 billion. The company’s gross profit increased 7.9% year-over-year to $843.87 million. Its adjusted net income and adjusted EPS amounted to $84.92 million and $0.20, up 33.8% and 33.3% from the previous year’s quarter, respectively.

In addition, CHWY’s adjusted EBITDA of $138.25 million reflects growth of 67.4% year-over-year. The company’s free cash flow grew 218.2% from the previous year’s quarter to $151.77 million.

Street expects CHWY’s revenue for the fourth quarter (ended January 2025) to increase 13% year-over-year to $3.20 billion. The company’s EPS for the same period is expected to grow 10.4% from the prior year to $0.20. Moreover, it has topped the consensus revenue estimates in all of the trailing four quarters.

Over the past six months, CHWY’s stock has gained 72.2% and 127.5% over the past year to close the last trading session at $38.51.

CHWY’s POWR Ratings reflect bright prospects. The stock has an overall grade of B, translating to a Buy in our proprietary rating system.

CHWY has a B grade for Quality. It is ranked #9 among 54 stocks within the Consumer Goods industry.

To see the other ratings of CHWY for Growth, Value, Stability, Momentum, and Sentiment, click here.

PetMed Express, Inc. (PETS)

PETS is a pet pharmacy company that markets prescription and non-prescription pet medications, health products, and other supplies for dogs, cats, and horses. It offers non-prescription medications and supplies, including flea and tick control products, bone and joint care products, and vitamins.

In terms of forward EV/Sales, PETS is trading at 0.25x, 81.3% lower than the industry average of 1.31x. Likewise, the stock’s forward Price/Sales multiple of 0.45 is 53.4% lower than the industry average of 0.97. Also, its forward Price/Book of 1.16x is 58.1% lower than the industry average of 2.78x.

During the second quarter that ended September 30, 2024, PETS reported net sales of $59.57 million and gross profit of $17.31 million. In addition, the company’s income from operations and adjusted EBITDA stood at $554 thousand and $2.10 million, respectively.

The company's net income was $2.33 million or $0.11 per common share, indicating increases of 225.3% and 266.7% over the prior year's quarter, respectively.

For the first quarter ending June 2025, the company’s revenue is expected to grow 1% year-over-year to $68.63 million. Similarly, analysts expect PETS’ revenue for the fiscal year 2026 to increase 3.2% year-over-year to $252.28 million.

Shares of PETS have surged 10.7% over the past month and 51.3% over the past six months to close the last trading session at $5.37.

PETS’ sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

PETS has a B grade for Quality and Value. It is ranked #21 out of 63 stocks in the Medical - Services industry.

In addition to the POWR Ratings we’ve stated above, we also have PETS ratings for Momentum, Sentiment, Stability, and Growth. Get all PETS ratings here.

What To Do Next?

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ZTS shares were trading at $174.40 per share on Thursday afternoon, down $1.27 (-0.72%). Year-to-date, ZTS has gained 7.36%, versus a 3.16% rise in the benchmark S&P 500 index during the same period.

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.

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