The pet industry is expected to continue growing in the coming years, driven by changing consumer preferences and innovative trends. This growth is supported by increasing pet ownership, particularly among millennials, who see pets as family members and are ready to invest in premium pet care. According to the 2024 APPA National Pet Owners Survey, 82 million US households own a pet. This shows how common pet ownership is becoming across the country. Millennials make up 32% of all pet owners.
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The rise of premium supplements is another key factor expected to drive growth. This aligns with the trend of the “humanization of pets,” where pet parents seek nutritious and healthy solutions for their animals. As a result, there is a growing demand for sustainable and organic pet products.
These trends highlight a deep emotional connection between pets and pet parents, which is driving innovation and spending in the industry.
According to the American Pet Products Association (APPA), US pet industry sales are projected to reach $150.6 billion in 2024. Pet food is expected to remain the largest segment, with spending rising to $66.9 billion. Other major segments include Supplies, Live Animals, and Over-the-counter (OTC) Medicine at $32 billion, as well as Veterinary Care and Product Sales projected to reach $39.1 billion. These segments offer significant opportunities for companies involved in pet care products and services.
With this background in mind, let’s take a look at the 8 best pet stocks to buy according to billionaires.
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Our Methodology
To compile our list of the 8 best pet stocks to buy according to billionaires, we looked for the largest pet companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best pet stocks. Next, we focused on the top 8 pet stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 8 best pet stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Best Pet Stocks to Buy According to Billionaires
8. The J. M. Smucker Company (NYSE:SJM)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 37
The J. M. Smucker Company (NYSE:SJM), or simply Smuckers, is an American company that manufactures and markets coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food. The company offers a diverse portfolio of brands available across North America, including Folgers, Dunkin’, Café Bustelo, Jif, Uncrustables, Smucker’s, Hostess, Milk-Bone, and Meow Mix. According to billionaires, The J. M. Smucker Company (NYSE:SJM) is one of the best pet stocks to buy.
The company is focused on portfolio optimization and prioritization of resources. On March 3, The J. M. Smucker Company (NYSE:SJM) completed the divestiture of its Cloverhill and Big Texas brands, as well as certain private label products, to JTM Foods for approximately $40 million. This transaction, which also includes a manufacturing facility in Chicago, is part of the company’s strategy to focus resources on its most important brands.
On March 24, Morgan Stanley analyst Megan Alexander Clapp initiated coverage of The J. M. Smucker Company (NYSE:SJM), giving it an “Overweight” rating and a price target of $123. The analysts are confident in the company’s growth prospects. The firm’s evaluation suggests that The J. M. Smucker Company’s (NYSE:SJM) portfolio of brands is expected to outperform competitors, particularly in center-of-store categories. Morgan Stanley believes that The J. M. Smucker Company’s (NYSE:SJM) current valuation does not fully account for the sustained success of the Uncrustables product line, the coffee segment’s resilience to inflationary pressures, and early signs of stabilization in the Hostess brand.
7. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 37
Elanco Animal Health Incorporated (NYSE:ELAN) ranks among the best pet stocks to invest in. As a leading animal health company, it produces medicines and vaccinations to treat and prevent diseases in farm animals and pets. Elanco Animal Health Incorporated (NYSE:ELAN) has about 200 brands and its products are sold in more than 90 countries.
The company is currently focused on innovation and expansion. It aims to deliver blockbuster products that meet the critical needs of pets and their owners in the markets it serves. In January, Elanco Animal Health Incorporated (NYSE:ELAN) launched Credelio Quattro, the first and only monthly chewable tablet for dogs that provides protection against ticks, fleas, heartworm disease, roundworms, hookworms, and tapeworms. Additionally, the company reported that Zenrelia, a once-daily treatment for dogs to treat itchy and irritated skin caused by allergic and atopic dermatitis, has been adopted in over 8,000 US clinics. This represents a penetration of nearly 30%. Zenrelia was also launched in Japan in November 2024 and in Canada in January 2025 as part of Elanco Animal Health Incorporated’s (NYSE:ELAN) global expansion efforts.
6. Tractor Supply Company (NASDAQ:TSCO)
Number of Billionaire Investors: 10
Number of Hedge Fund Holders: 40
Tractor Supply Company (NASDAQ:TSCO) is an American company that sells home improvement, agriculture, lawn and garden maintenance, livestock, and pet care products and supplies. The company serves recreational farmers, ranchers, homeowners, gardeners, and pet enthusiasts with more than 2,200 stores in 49 states. Tractor Supply Company (NASDAQ:TSCO) also has more than 200 Petsense by Tractor Supply stores in 23 states. Petsense is a small-box pet specialty supply retailer providing products and services for pet owners. TSCO ranks among the best pet stocks to invest in according to billionaires.
The company is strategically expanding its pet care offerings through acquisitions and new product launches. In December 2024, Tractor Supply Company (NASDAQ:TSCO) completed its acquisition of Allivet, a leading online pet and animal pharmacy that is licensed in all 50 states with 3 distribution centers that allow it to reach a large majority of the US with next day delivery. This transaction helps Tractor Supply Company (NASDAQ:TSCO) reach more customers and grow its total addressable market by $15 billion to $225 billion. Additionally, in January 2025, the company launched 4health Shreds, a new dog food product that combines crunchy kibble and protein-rich shreds for better texture and nutrition. 4health Shreds products are priced under $55 for a 35-pound bag to offer over 20% better value than comparable national brands.
5. Spectrum Brands Holdings, Inc. (NYSE:SPB)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 38
Spectrum Brands Holdings, Inc. (NYSE:SPB) is an American global consumer products company that offers a portfolio of leading brands across pet care, home and garden, and personal care. The company is a major supplier of pet products for dogs, cats, birds, fish, and small animals. The company’s products are sold by the world’s top retailers and are available in more than 100 countries. Spectrum Brands Holdings, Inc. (NYSE:SPB) ranks among the best pet stocks to invest in.
Over the past year, the company has prioritized investments in brand-focused initiatives to drive top-line growth. This included upgrading capabilities in commercial operations, innovation, marketing, and advertising. In Q1 of Fiscal 2025, which ended December 29, 2024, Spectrum Brands Holdings, Inc. (NYSE:SPB) increased brand-focused investments by over $8 million compared to the same period last year. The company is also focused on e-commerce expansion and continues to strategically invest in inventory to support sales growth and e-commerce leadership capabilities. In its Global Pet Care segment, Spectrum Brands Holdings, Inc. (NYSE:SPB) is expanding its Good ‘N’ Fun brand with Good ‘N’ Tasty for cat treats and toppers. The company is also planning a complete nutrition dog food line in North America under the Good Boy brand later this year.
4. Freshpet, Inc. (NASDAQ:FRPT)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 40
Freshpet, Inc. (NASDAQ:FRPT) is an American pet food company. Its cat food and dog food products are prepared by veterinary nutritionists and marketed as nutritious and fresh. The company’s food products are available in select grocery, mass, club, pet specialty, natural, and digital retailers across the US, Canada, and Europe. Freshpet, Inc. (NASDAQ:FRPT) ranks among the best pet stocks to invest in.
On February 24, Jefferies upgraded Freshpet, Inc. (NASDAQ:FRPT) from a “Hold” to a “Buy” rating while reducing the stock’s price target to $150 from $155. This adjustment followed the company’s strong Q4 2024 results. The analysts noted the persistent strength of the pet premiumization trend and improvements in the broader pet industry. Jefferies analysts forecast Freshpet, Inc.’s (NASDAQ:FRPT) sales to grow at a compound annual growth rate of 23% through 2027, alongside expanding profit margins, which the analysts see as a rare combination. The positive outlook is supported by promising trends in the pet industry. Jefferies believes these factors position Freshpet, Inc. (NASDAQ:FRPT) for continued growth and profitability over the next few years.
3. Chewy, Inc. (NYSE:CHWY)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 48
Chewy, Inc. (NYSE:CHWY) is an American pet company that operates as an online retailer of pet food and treats, pet supplies, pet care, and other pet-related products. The company serves the contiguous United States and has expanded to Southern Ontario in Canada as well. Chewy, Inc. (NYSE:CHWY) ranks among the best pet stocks to buy.
On March 20, TD Cowen analyst William Kerr reiterated a “Buy” rating for Chewy, Inc. (NYSE:CHWY) with a price target of $45. The firm’s analyst highlighted the company’s strong financial outlook ahead of its Q4 2024 earnings. Kerr expects Chewy, Inc. (NYSE:CHWY) to report Q4 2024 revenues of approximately $3.2 billion, which would represent a 13% year-over-year growth. This growth is expected to be driven by strong Autoship sales. Through the Autoship subscription program, Chewy, Inc. (NYSE:CHWY) allows customers to set up automatic recurring orders for their preferred pet supplies, which ensures recurring sales. Kerr also predicts an improvement in gross margin to 29.3%, up from 28.2% in the fourth quarter of the previous year, supported by advertising growth. These figures align with market expectations and the higher end of the company’s guidance.
2. IDEXX Laboratories, Inc. (NASDAQ:IDXX)
Number of Billionaire Investors: 14
Number of Hedge Fund Holders: 58
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is an American multinational corporation that offers diagnostic and software products to the pet health, livestock, poultry, water testing, and dairy markets. The company’s solutions and products are sold in over 175 countries and territories. IDEXX Laboratories, Inc. (NASDAQ:IDXX) ranks among the best pet stocks to invest in.
The company is actively introducing new technologies and solutions that address bottlenecks in veterinary practices and meet the demands of its customers. In the fourth quarter of 2024, IDEXX Laboratories, Inc. (NASDAQ:IDXX) launched the IDEXX inVue Dx Cellular Analyzer, a slide-free tool that detects the most common cytologic changes found in ear and blood samples. It uses deep AI learning models to provide practitioners with reference-laboratory quality results in 10 minutes. Additionally, IDEXX Laboratories, Inc. (NASDAQ:IDXX) plans to release the IDEXX Cancer Dx screening for canine lymphoma in the US and Canada by late March 2025.
1. Zoetis Inc. (NYSE:ZTS)
Number of Billionaire Investors: 15
Number of Hedge Fund Holders: 76
Zoetis Inc. (NYSE:ZTS) is an American animal health company. It is one of the world’s largest producers of medicine and vaccinations for pets and livestock. The company’s medicines, vaccines, diagnostics, and technologies are sold in over 100 countries. Zoetis Inc. (NYSE:ZTS) ranks among the best pet stocks to buy according to billionaires.
The company is strategically focused on driving innovation and expanding its product portfolio. After its Q3 2024 quarterly earnings announcement, Zoetis Inc. (NYSE:ZTS) achieved approvals for key products in new markets. Revolution Plus, which treats ticks, fleas, ear mites, lice, and gastrointestinal worms and prevents heartworm disease in cats, was approved in Brazil. Revolution Plus also received approval in the US and Canada for an additional claim for preventing flea tapeworm infections. Librela, the first injectable monoclonal antibody for osteoarthritis pain in dogs, received approvals in El Salvador and South Korea. Additionally, Simparica and Simparica Trio were approved in the US for treating and controlling Asian longhorned tick infestations in dogs. Zoetis Inc. (NYSE:ZTS) is successfully addressing unmet needs in animal health while expanding globally. This positions the company as a leader in animal healthcare.
Overall, ZTS ranks first among the 8 best pet stocks to buy according to billionaires. While we acknowledge the potential of pet companies, our conviction lies in the belief that some 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 ZTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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