We recently compiled a list of the 8 Best Pet Stocks to Buy According to Billionaires. In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against the other pet stocks.
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.
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).
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.
Overall, SJM ranks 8th on our list of the best pet stocks to buy according to billionaires. While we acknowledge the potential of SJM as an investment, 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 SJM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
