10 Best Pet Stocks To Invest In According to Analysts

8. Patterson Companies Inc. (NASDAQ:PDCO)

Average Price Target Upside Potential According to Analysts: 23.11%

Number of Hedge Fund Holders: 25

Patterson Companies Inc. (NASDAQ:PDCO) is an oral and animal health company that ranks 8th on our list of the best pet stocks to invest in according to analysts. The company is primarily focused on providing products, technologies, services, and business solutions to the animal and oral health markets in North America and the United Kingdom.

In the first quarter of fiscal 2025, Patterson Companies Inc. (NASDAQ:PDCO) reported net sales of $1.54 billion, a decline of 2.2% year-over-year. The animal health segment generated $982.4 million in sales, with internal sales down 2.8% compared to the same quarter in the previous year. This decline was influenced by a tough economic environment, including inflation and rising interest rates, as well as lower sales in the companion animal business. However, Patterson Companies Inc. (NASDAQ:PDCO) is shifting its strategy to prioritize more profitable areas within this segment.

The company faced significant setbacks due to a cybersecurity attack on Change Healthcare, which disrupted the company’s dental segment. This incident affected the ability of dental customers to submit insurance claims, leading to reduced orders for consumables. Despite these challenges, Patterson Companies Inc. (NASDAQ:PDCO) remains committed to innovation and has integrated advanced AI pathology detection features into its Eaglesoft dental practice management software to improve diagnostic accuracy and streamline workflows for dental practices.

Patterson Companies Inc. (NASDAQ:PDCO) is taking proactive steps to enhance efficiency and drive growth. The company is implementing cost management measures while continuing to invest in long-term growth initiatives.

Despite recent performance issues, Patterson Companies Inc. (NASDAQ:PDCO) returned $73.3 million to shareholders in the first quarter of fiscal 2025 through dividends and share repurchases.

According to Insider Monkey’s database, 25 hedge funds held stakes in Patterson Companies Inc. (NASDAQ:PDCO) in the second quarter of 2024. Additionally, the median 1-year stock price target for PDCO set by analysts indicates a potential upside of 23% from its current price.