Chewy (NYSE:CHWY) has recently become what some would consider to be a meme stock. On June 24, influential investor Keith Gill, also known as Roaring Kitty, disclosed the purchase of 9 million shares, valued at roughly $245 million. This sent investors flooding into the stock, artificially inflating its share price. However, shares have returned to their previous level before the news was reported due to its overall volatility.
Even with the recent increase in its share price, Chewy has still been down 34% over this past year. CHWY, among other meme stocks, experiences wild price action swings, making short-term returns unpredictable. Investors who may be looking to start investing in Chewy should consider these other pet-centric stocks that have been performing much better recently.
Below, these pet stocks have seen share price growth this past year, while Chewy has experienced a relatively rapid decline.
Zoetis (ZTS)
Zoetis (NYSE:ZTS) manufactures animal health medications, other products, and services. Its pharmaceutical products are used by livestock and domestic pets such as dogs and cats.
Over this past year, its share price has risen by 3%.
On May 2, Zoetis released its earnings for the first quarter of 2024, in which it stated that total revenue increased by 10% to $2.2 billion and net income rose by 9% year-over-year. Full-year guidance for 2024 anticipates revenue growth between 9.5% and 10.5%.
Zoetis offers a dividend yield of 0.99% on an annual basis. The most recent quarterly distribution was for forty-three cents per share, paid out to investors on April 17.
Zoetis is a pet stock that has outperformed Chewy over the past year. ZTS is also experiencing improved growth in both its domestic and international segments. Its recent purchase of a manufacturing facility in Australia and the expansion of its primary distribution hub in Lee’s Summit, Missouri, may lead to continued upside potential in the future.
Freshpet (FRPT)
FreshPet (NASDAQ:FRPT) is a company that manufactures and sells natural and fresh treats and food for dogs and cats. It sells its products online, in retail stores, and in grocery stores.
Over the past year, its share price has more than doubled due to strong earnings results and raised guidance.
On May 6, FreshPet reported earnings for the first quarter of 2024, stating that total sales increased by 34% year-over-year. A net loss of $25 million was reported for Q1 2023, which improved to a net income of $18 million for Q1 2024. Improved guidance was reported, with anticipated revenue for the full year 2024 of $950 million, a 23% increase compared to 2023.
FreshPet beat analyst predictions regarding earnings for the first quarter of 2024 primarily due to lower manufacturing costs.
FreshPet has experienced outstanding growth this past year, while Chewy has struggled. FreshPet is a much better alternative. With its sorting momentum, FreshPet could continue to reward investors.
PetIQ (PETQ)
PetIQ (NASDAQ:PETQ) offers pet health and wellness products under brands such as PetArmor, VetIQ, and Minties. It also operates veterinary services such as diagnostics testing, vaccinations, microchipping, and medications.
On May 8, PETQ announced earnings for the first quarter of 2024, stating that total revenue increased by 6% and net income rose by 54% compared to the previous year. Robust demand for products such as flea and tick protection and other wellness-related products has increased earnings.
Over this past year, its share price has risen by 51%.
PETQ beat analyst expectations regarding its most recent earnings results, which has assisted in its share price appreciation. With record sales and increased efficiency in cost-saving methods in manufacturing, PETQ offers investors increased growth potential, while Chewy may still experience near-term issues.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
