In this article, we will explore the 10 best pet stocks to invest in according to analysts.
Pet Industry at a Glance
The pet industry is a rapidly growing sector. It was valued at approximately $320 billion in 2023 and is projected to reach nearly $500 billion by 2030, according to Bloomberg Intelligence’s Pet Economy Report. This growth is driven by a rising global pet population and an increasing trend of pet humanization, where owners treat pets as family members and are willing to spend more on their care, including premium food and health services.
The report notes that the US is positioned to remain the largest pet market. In the United States, the market is expected to approach $200 billion by 2030, with significant spending on veterinary care and pet healthcare products.
Ann-Hunter Van Kirk, Bloomberg Intelligence Senior Biopharmaceutical Analyst and co-author of the report, noted that improved pet nutrition is contributing to longer lifespans for pets, which in turn drives up spending on healthcare for aging animals. Analysts expect this trend of increased spending on pet health to continue over the next decade.
Diana Rosero-Pena, Bloomberg Intelligence Consumer Staples Analyst and co-author of the report, highlighted a notable rise in consumer spending on pet products, predicting that the pet food market could grow by more than 50% by 2030.
Shopping Trends Among Pet Owners
In April 2024, Acosta Group released the results of a new study highlighting important insights into pet parents’ shopping habits. With two in three US households owning at least one dog or cat, spending on pet food, treats, and healthcare has become a significant part of household budgets. The study found that 96% of pet parents consider their pets family members, and 86% are willing to adjust their budgets to accommodate their pets’ needs. This presents a valuable opportunity for retailers and brands to target this large audience.
The study also highlighted key preferences among pet parents regarding food choices. 42% prioritize high-protein content for their pets, followed closely by 40% who focus on joint care and 38% who seek probiotics for gut health. Additionally, 36% of pet parents are interested in fresh, minimally processed foods. Brand loyalty plays a significant role in purchasing decisions, with 57% of dog owners and 59% of cat owners sticking to brands they have previously purchased. However, impulse buying is common, especially among millennials, with 58% influenced by in-store promotions. Most pet owners are turning to mass retailers, pet specialty stores, and online retailers for their pet care purchases, indicating a shift in how pet care products are accessed.
Overall, the pet industry remains a vital part of the global economy, driven by strong consumer attachment to pets and an ongoing commitment to their well-being.
Now that we have discussed some of the recent trends in the pet industry, let’s take a look at the 10 best pet stocks to invest in according to analysts.
A dog owner opening the packaging of a dried pet snack developed by the pet products company.
Methodology
To compile our list of the 10 best pet stocks to invest in according to analysts, we reviewed our own rankings and consulted various online resources. From an initial pool of more than 20 pet stocks, we focused on the top pet stocks that analysts believe have the most potential for growth. We ranked the 10 best pet stocks to buy based on their average price target upside potential according to analysts as of October 29, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s database of 912 elite hedge funds as of Q2 of 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Pet Stocks To Invest In According to Analysts
10. Freshpet Inc. (NASDAQ:FRPT)
Average Price Target Upside Potential According to Analysts: 17.09%
Number of Hedge Fund Holders: 39
Freshpet Inc. (NASDAQ:FRPT) is an American pet food company that ranks among the best pet stocks to buy according to analysts. The company specializes in fresh, refrigerated meals for dogs and cats. Freshpet Inc. (NASDAQ:FRPT) has carved out a niche by using high-quality, natural ingredients. Their unique approach involves cooking food in small batches at lower temperatures to maintain nutritional value, which resonates well with health-conscious pet owners. The company’s pet food products are available in select grocery, mass, digital, pet specialty, and club retailers across the US, Canada, and Europe.
The company’s recent financial performance has been impressive. In the second quarter of 2024, Freshpet Inc. (NASDAQ:FRPT) reported net sales of $235.3 million, marking a significant 28.3% increase from the previous year. This growth was primarily driven by increased sales volume, demonstrating strong demand for their products. This marked the company’s 24th consecutive quarter of net sales growth of over 25%.
Freshpet’s (NASDAQ:FRPT) strategic focus on expanding its retail presence has also contributed to its success. In the second quarter of 2024, the company had placed 790 new refrigerators in stores, bringing the total to 35,602 fridges across 27,497 locations as of June 30, 2024.
Investors may find Freshpet Inc. (NASDAQ:FRPT) appealing due to its consistent growth trajectory and innovative product offerings. With plans for further expansion and a commitment to quality, Freshpet Inc. (NASDAQ:FRPT) is well-positioned to capitalize on the growing trend of premium pet food consumption.
Over the past 10 years, the company has managed to grow its revenue at a compound annual growth rate of 28%.
Analysts are also bullish on FRPT with a consensus buy rating. The 12-month median price target of $157.00 set by analysts indicates a potential upside of 17% from the current stock price.
According to Insider Monkey’s database, Freshpet Inc. (NASDAQ:FRPT) has also gained significant interest from institutional investors, with the number of hedge fund holders increasing to 39 in Q2 2024, up from 34 in the previous quarter.
9. Spectrum Brands Holdings Inc. (NYSE:SPB)
Average Price Target Upside Potential According to Analysts: 20.24%
Number of Hedge Fund Holders: 30
Spectrum Brands Holdings Inc. (NYSE:SPB) is a leading producer of pet care supplies, home and garden products, and personal care products. The company offers a broad portfolio of brands including Tetra, DreamBone, SmartBones, Nature’s Miracle, 8-in-1, FURminator, Healthy-Hide, Good Boy, Meowee!, OmegaOne, Spectracide, Cutter, Repel, Hot Shot, Rejuvenate, Black Flag, Liquid Fence, Remington, and George Foreman.
In the third quarter of fiscal 2024, Spectrum Brands Holdings Inc. (NYSE:SPB) reported a 6% increase in net sales, driven by favorable weather conditions and improved retailer inventory levels in its Home & Garden segment. E-commerce sales accounted for over 21% of total net sales, highlighting the company’s successful online strategy. In the global pet care segment, net sales rose by 3.6%, with organic growth of 4.1%, thanks to strong demand for companion animal products in both North America and internationally.
The company is actively expanding its product offerings, recently launching Good ‘n’ Tasty dog treats in the US. This move taps into the growing $5 billion US pet treat market and is already showing promising results. Spectrum Brands Holdings Inc. (NYSE:SPB) is also innovating in the pet specialty channel with new tub-free grooming offerings from FURminator, which are gaining traction among consumers.
Additionally, in the third quarter of fiscal 2024, Spectrum Brands Holdings Inc. (NYSE:SPB) entered the growing wet dog food market in the UK by launching Good Boy Home Faves. The company secured listings with major retailers and is promoting natural recipes to attract pet owners looking for high-quality options.
Spectrum Brands Holdings Inc. (NYSE:SPB) has a robust strategy focused on innovation and e-commerce growth. The company’s strong brand portfolio makes it an attractive investment opportunity.
SPB is one of the best pet stocks to buy according to analysts. The 12-month median price target set by analysts indicates a potential upside of 20% from the current stock price.
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.
7. Chewy Inc. (NYSE:CHWY)
Average Price Target Upside Potential According to Analysts: 23.64%
Number of Hedge Fund Holders: 33
Chewy Inc. (NYSE:CHWY) is an American online pet supply retailer that offers a wide range of products, including food, toys, and medicine. The company partners with around 3,500 trusted brands and also has its own private-label products. With about 115,000 products and services available through its websites and mobile apps, Chewy Inc. (NYSE:CHWY) makes it easy for pet owners to find everything they need. The company also offers a subscription service through its Autoship program that allows customers to set up regular deliveries of pet supplies.
In the second quarter of 2024, Chewy Inc. (NYSE:CHWY) reported net sales of $2.86 billion, which is a 2.6% increase from the same quarter last year. Basic earnings per share rose significantly to $0.70, an increase of $0.65 year-over-year. The Autoship program continues to be a strong performer. Autoship customer sales increased by around 6% and accounted for 78% of total sales. This reflects the program’s popularity and the strength of Chewy’s (NYSE:CHWY) essential product categories, such as consumables and pet health products.
The company is also seeing positive trends in customer engagement. Chewy Inc. (NYSE:CHWY) achieved a record net sales per active customer of $565 in Q2 2024. Additionally, the company has been redesigning its mobile app to make the overall user experience more convenient. In the second quarter of 2024, unique customers who placed orders through the company’s mobile app increased by about 13% year-over-year, with overall mobile app orders increasing approximately 15% year-over-year.
Furthermore, Chewy Inc. (NYSE:CHWY) has expanded its veterinary services by opening two new Vet Care clinics in Denver and South Florida. This expansion aligns with the company’s goal to enhance customer care and support pet health.
With strong financial performance and ongoing improvements in customer engagement, Chewy Inc. (NYSE:CHWY) presents a compelling investment opportunity in the pet industry. The company’s focus on convenience and quality positions it well for future growth.
Analysts have a positive outlook on CHWY. The 12-month median price target set by analysts indicates a potential increase of 23% from the stock’s current price.
As of the second quarter of 2024, Chewy Inc. (NYSE:CHWY) was held by 33 hedge funds, according to Insider Monkey’s database. Meridian Funds stated the following regarding Chewy Inc. (NYSE:CHWY) in its “Meridian Growth Fund” Q2 2024 investor letter:
“Chewy Inc. (NYSE:CHWY) is an online provider of pet food, supplies, and medications. The company’s stock soared during COVID while customers accelerated online purchases and added pets to their families. Following a post-COVID correction, we re-established a position during the quarter at what we believe to be an attractive price. With nearly 80% of revenues recurring—a rarity for an online business—we believe Chewy is well-positioned to activate and grow its customer base. In addition, we can see its pharmacy business starting to improve net sales and margins per active customer and have high confidence in its new CFO. Both, in our view, could add significant value. The stock gained during the period as higher net sales per active customer increased almost 10%.”
6. Zoetis Inc. (NYSE:ZTS)
Average Price Target Upside Potential According to Analysts: 24.12%
Number of Hedge Fund Holders: 61
Zoetis Inc. (NYSE:ZTS) is an American animal health company that discovers, develops, manufactures, and commercializes vaccines, medicines, diagnostics, and other technologies for companion animals and livestock. It is one of the world’s largest producers of medicine and vaccinations for pets and livestock.
In the second quarter of 2024, Zoetis Inc. (NYSE:ZTS) reported a revenue of $2.4 billion, an 8% increase compared to the same period in 2023. The US segment generated $1.3 billion, reflecting a 12% growth driven by strong sales of companion animal products, particularly monoclonal antibody treatments for osteoarthritis pain, such as Librela for dogs and Solensia for cats. The international segment also performed well, with revenues of $1 billion, up 4% reported and 10% operationally.
The company is committed to innovation, recently gaining approvals for new products like a combination vaccine for Atlantic Salmon in Canada and a treatment for bacterial pneumonia in cattle in Japan.
Zoetis Inc. (NYSE:ZTS) is also enhancing its diagnostic capabilities with the upcoming launch of the Vetscan Opticell, a new point-of-care hematology analyzer set to launch in the second half of 2024. This innovative device will help veterinary teams save time, reduce costs, and optimize space in clinics, leading to improved patient care. Powered by advanced AI technology, Vetscan Opticell provides accurate Complete Blood Count (CBC) analysis directly at the point of care, ensuring high-quality results without the need for traditional methods.
The company’s ability to adapt to market needs and its diverse product portfolio makes it a strong investment choice. With continuous growth in both the companion animal and livestock sectors, Zoetis Inc. (NYSE:ZTS) is poised for future success.
Over the past ten years, Zoetis Inc. (NYSE:ZTS) has grown its revenue at a compound annual growth rate (CAGR) of 6.81%, while its net income has increased at a CAGR of 16.10% during the same period. Over the past 10 years, the company has also grown its levered free cash flow at a CAGR of 17.44%.
Analysts are quite optimistic about ZTS. Their 12-month price target suggests the stock could increase by 24% from its current level.
According to Insider Monkey’s database, 61 hedge funds held stakes in Zoetis Inc. (NYSE:ZTS) in the second quarter of 2024. Polen Capital stated the following regarding Zoetis Inc. (NYSE:ZTS) in its “Polen Global Growth Strategy” second-quarter 2024 investor letter:
“We re-established a position in Zoetis Inc. (NYSE:ZTS) after holding a position from late 2017 to late 2021. Our sale came after a successful holding period and was solely driven by valuation, which we felt was stretched at the time. We had an opportunity to re-establish a position at a lower price than we sold in September 2021 despite Zoetis having a roughly 25% higher earnings base. In short, we’ve taken advantage of the recent dip in valuation to buy back what we think is an attractive safety business capable of sustaining durable low double-digit earnings growth.”
5. IDEXX Laboratories Inc. (NASDAQ:IDXX)
Average Price Target Upside Potential According to Analysts: 27.28%
Number of Hedge Fund Holders: 41
IDEXX Laboratories Inc. (NASDAQ:IDXX) is a global leader in pet healthcare innovation and it ranks among the top 5 on our list of the best pet stocks to buy according to analysts. It is an American multinational corporation that is primarily engaged in the development, manufacture, and distribution of products and services for the companion animal veterinary, livestock and poultry, dairy and water testing industries. IDEXX Laboratories Inc. (NASDAQ:IDXX) specializes in veterinary diagnostics, software, and water microbiology testing.
In the third quarter of 2024, the company reported a revenue of $976 million, marking a 7% increase from the same quarter in the previous year. This growth was largely driven by a 7% rise in the Companion Animal Group (CAG) segment and a strong 13% increase in water testing revenue. The company’s veterinary software and diagnostic imaging systems also saw an 11% revenue boost, showcasing the demand for its high-quality products. Additionally, IDEXX Laboratories Inc. (NASDAQ:IDXX) reported earnings per share of $2.80, reflecting an 11% increase year-over-year and improved operating margins.
IDEXX Laboratories Inc. (NASDAQ:IDXX) continues to expand its offerings. The company reported nearly 700 pre-orders for the new inVue Dx Cellular Analyzer, with shipping expected to begin in the fourth quarter. This innovative tool provides valuable clinical insights that save time for busy veterinary staff, further enhancing the company’s reputation as a leader in veterinary solutions.
With strong financial performance and a clear focus on expanding its product lineup, IDEXX Laboratories Inc. (NASDAQ:IDXX) presents a compelling investment opportunity. The ongoing demand for its diagnostic tools and software solutions positions the company well for future growth.
Analysts are also bullish on IDXX. The 12-month median price target set by analysts indicates a potential upside of 27% from the current stock price.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 41 hedge funds held stakes in IDEXX Laboratories Inc. (NASDAQ:IDXX). Baron Funds stated the following regarding IDEXX Laboratories Inc. (NASDAQ:IDXX) in its second quarter 2024 investor letter:
“Shares of veterinary diagnostics leader IDEXX Laboratories Inc. (NASDAQ:IDXX) detracted from performance. Foot traffic to veterinary clinics in the U.S. remains uneven, which will modestly hamper aggregate revenue growth. Despite this, IDEXX’s excellent execution has enabled the company to continue to deliver robust financial results. We believe IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth in 2024. We see increasing evidence that long-term secular trends around pet ownership and pet care spending have been structurally accelerated, which should help support IDEXX’s long-term growth rate.”
4. Central Garden & Pet Company (NASDAQ:CENT)
Average Price Target Upside Potential According to Analysts: 28.58%
Number of Hedge Fund Holders: 20
Central Garden & Pet Company (NASDAQ:CENT) is an American company and a market leader in the Pet and Garden industries. The company offers more than 65 high-quality brands that help consumers care for their pets, grow their gardens, and support their communities. These include 3D Pet Products, Amdro, Aqueon, Cadet, Farnam, Ferry-Morse, Four Paws, Kaytee, K&H, Nylabone, and Pennington.
In November 2023, the company announced that it had acquired TDBBS, LLC, a provider of premium natural dog chews and treats based in Richmond, VA. This acquisition has enhanced Central Garden & Pet Company’s (NASDAQ:CENT) product lineup and strengthened its eCommerce capabilities.
In the third quarter of fiscal 2024, Central Garden & Pet Company (NASDAQ:CENT) reported net sales of $996 million, a slight decline from $1.02 billion the previous year. However, the pet segment showed resilience with net sales increasing by 1% to $508 million, largely due to the TDBBS acquisition and growth in consumable pet products. Operating income for the pet segment surged by 39% to $83 million, reflecting improved profitability.
Central Garden & Pet Company (NASDAQ:CENT) is focused on streamlining its operations. The company has decided to exit its underperforming pottery business over the next fiscal year and close a live plants distribution facility. These strategic moves aim to simplify operations and improve overall efficiency. With a strong financial performance in the Pet segment and ongoing efforts to enhance its business operations, Central Garden & Pet Company (NASDAQ:CENT) is well-positioned for future growth.
Analysts currently hold a consensus buy rating on the CENT stock and the 1-year median price target set by analysts indicates a potential upside of 28% from current levels. This brings Central Garden & Pet Company (NASDAQ:CENT) to the 4th spot on our list of the best pet stocks to invest in.
According to Insider Monkey’s database of over 900 hedge funds, as of Q2 2024, Central Garden & Pet Company (NASDAQ:CENT) was held by 20 hedge funds.
3. Neogen Corporation (NASDAQ:NEOG)
Average Price Target Upside Potential According to Analysts: 30.75%
Number of Hedge Fund Holders: 16
Neogen Corporation (NASDAQ:NEOG) is a food and animal safety company that ranks among the top 3 on our list of the best pet stocks to invest in according to analysts. The company has developed comprehensive solutions for the food safety, livestock, and pet health and wellness market. Neogen Corporation (NASDAQ:NEOG) has a presence in more than 140 countries around the world.
In the Animal Safety segment, the company is currently facing challenging market conditions. The management believes the end market is near cyclical lows. Despite this, Neogen Corporation (NASDAQ:NEOG) continues to see supportive sales from its products to end users. The decline in core revenue is mainly due to fluctuations in inventory levels among distribution partners and timing issues. Operationally, Neogen’s (NASDAQ:NEOG) profit margins were impacted by lower sales volumes and increased shipping costs. To address these challenges, the company is implementing various initiatives aimed at improving margins and enhancing overall performance.
In its first quarter of fiscal 2025 results, the company faced challenges in its Animal Safety segment, where revenues dropped by 8.1% year-over-year to $57.6 million.
Neogen Corporation’s (NASDAQ:NEOG) food and animal safety solutions are increasingly vital in today’s market, especially given recent high-profile contamination incidents. The company provides essential testing services that help prevent costly recalls and protect consumer health. With a strong portfolio of validated products and a reputation as a trusted partner, Neogen Corporation (NASDAQ:NEOG) is well-positioned to support businesses in maintaining food safety standards.
In September, the company crossed the 2-year anniversary of the 3M Food Safety transaction, which has strengthened its product offerings and global reach. In the Q1 2025 earnings call, Neogen Corporation’s (NASDAQ:NEOG) management shared that they have resolved the system issues in their distribution center that affected the company’s order fulfillment. Now that shipping challenges are no longer a problem, the company’s main focus is on growing its market share.
While Neogen Corporation (NASDAQ:NEOG) has experienced some setbacks, its strategic initiatives combined with its global presence and innovative solutions in the food and animal safety market, suggest potential for future growth.
Analysts have a positive outlook on NEOG. Their 12-month median price target indicates a potential increase of 30% from the stock’s current price.
According to Insider Monkey’s database of over 900 hedge funds, 16 hedge funds held stakes in Neogen Corporation (NASDAQ:NEOG) in Q2 2024.
2. BARK Inc. (NYSE:BARK)
Average Price Target Upside Potential According to Analysts: 41.67%
Number of Hedge Fund Holders: 16
BARK Inc. (NYSE:BARK) is a dog-centric company that ranks second on our list of the best pet stocks to buy. The company is dedicated to making dogs happy through innovative products and services. BARK Inc. (NYSE:BARK) offers monthly subscription boxes like BarkBox and BARK Super Chewer, which deliver themed toys and treats. The company also delivers nutritious meals with BARK Food and products that meet dogs’ dental needs with BARK Bright.
Recently, on October 23, 2024, BARK Inc. (NYSE:BARK) announced a collaboration with Crocs to release Pet Crocs, allowing BarkBox and BARK Super Chewer subscribers to add the shoes for their dogs to their next box. Dog owners can also purchase matching shoes for themselves and their pets online at Crocs.com and in select retail locations while supplies last.
Additionally, in May 2024, the company launched BARK Air, the world’s first airline designed specifically for dogs, which has already generated significant interest and sales. In less than four months since its launch, BARK Air has booked over $2.5 million in ticket sales and has flown flights between major cities like New York, Los Angeles, and London.
Financially, BARK Inc. (NYSE:BARK) reported impressive results in its first quarter of fiscal 2025. The company achieved a revenue of $116.2 million, surpassing its guidance range. While direct-to-consumer revenue saw a slight decline of 4.3% year-over-year, commerce revenue grew by 5.2%, supported by the company’s recent consumables expansion into retail. BARK Inc. (NYSE:BARK) achieved year-over-year growth in new customer acquisition for the third consecutive quarter, reflecting strong demand for its products and services.
BARK Inc.’s (NYSE:BARK) innovative approach to dog care positions it as a compelling investment opportunity. The combination of unique product offerings, strategic partnerships, and expanding services like BARK Air showcases the company’s ability to capture and grow within the pet market.
According to Insider Monkey’s database, BARK Inc. (NYSE:BARK) has gained significant interest from institutional investors, with the number of hedge fund holders increasing to 16 in Q2 2024, up from 13 in Q1 2024.
Analysts are also bullish on BARK. The 1-year median price target of $2.04 set by analysts indicates a potential upside of 41% from current levels.
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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