10 Best Pet Stocks To Invest In According to Analysts

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1. Elanco Animal Health Incorporated (NYSE:ELAN)

Average Price Target Upside Potential According to Analysts: 55.88%

Number of Hedge Fund Holders: 44

Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company that primarily focuses on developing medicines and vaccines for pets and livestock. In the second quarter of 2024, Elanco emphasized its commitment to innovation, highlighting the upcoming commercial activities for Bovaer after the FDA review in May. The company expects to launch significant products in the next three quarters.

On October 7, 2024, Elanco Animal Health Incorporated (NYSE:ELAN) announced that it has received FDA approval for Credelio Quattro, a comprehensive oral parasiticide for dogs that protects against six types of parasites. Additionally, on September 19, 2024, the company announced that Zenrelia was approved by the FDA. Zenrelia is an effective treatment for pruritus or itching associated with allergic dermatitis and control of atopic dermatitis in dogs.

The company is focused on strengthening its financial position and expanding its product offerings. In 2024, Elanco Animal Health Incorporated (NYSE:ELAN) successfully repaid $1.3 billion in debt so far, thanks to improved operating cash flow and proceeds from the sale of its Aqua business. The company expects its net leverage to be around the mid-4x level by year-end, which reflects a significant reduction in debt and a commitment to financial health. Elanco Animal Health Incorporated (NYSE:ELAN) projects organic revenue growth of 3% to 4% for the full year, driven by a solid base business and contributions from innovative products.

Analysts are also bullish on ELAN. The 1-year median price target of $19.50 set by analysts indicates a potential upside of 55% from current levels.

As of the second quarter of 2024, Elanco Animal Health Incorporated (NYSE:ELAN) was held by 44 hedge funds, according to Insider Monkey’s database.

Overall, ELAN ranks first among the 10 best pet stocks to invest in according to analysts. While we acknowledge the potential of pet companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ELAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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