8 Most Profitable Small-Cap Stocks To Invest In

6. Central Garden & Pet Company (NASDAQ:CENT)

Market Cap: $2.1 billion 

5-year Net Income Growth: 7.52%

TTM Net Income: $144.98 million 

Number of Hedge Fund Holders as of Q2 2024: 20

Central Garden & Pet Company (NASDAQ:CENT) engages in the garden and pet industries in the US, with its operations divided into two segments: Pet and Garden. Despite a challenging environment, the company delivered solid Q3 2024 earnings. It experienced double digital e-commerce growth across its garden and pet categories, and even expanded its gross margin.

Central Garden & Pet Company’s (NASDAQ:CENT) strategy to enhance efficiency and simplify its business across its organization is bearing fruit. It is maintaining its outlook for the fiscal year, and is positioned to benefit from the long-term positive consumer trends in the pet and garden industries. Its cost and simplicity program is increasingly equipping the company to improve its profitability and make productive investment in its Central to Home strategy.

Its Pet segment sales grew by 1% to $508 million. This was driven by the recent TDBBS acquisition, its professional business, dog and cat and equine. In addition, its POS outperformed shipments. Branded pet products outperformed the company’s private label products, highlighting the strength of its brands.

It also expanded its market share in flea-and-tick aquatics, small animals, and wild birds. The company expects consumable pet products to continue growing, with household penetration and buy rates to remain fairly stable. It also anticipates consumer trends, pet health and wellness, a growing share of e-commerce, and a shift to younger generations to support the long-term growth of the pet industry. Central Garden & Pet Company (NASDAQ:CENT) ranks sixth on our list of the 8 most profitable small-cap stocks to invest in.