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 Tractor Supply Company (NASDAQ:TSCO) 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.
READ ALSO: 12 Best Health Insurance Stocks to Buy in 2025 and 8 Fastest Growing AI Stocks To Buy Right Now.
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).
A pet parent walking with their dog in a park, a reminder of the company’s care services.
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.
Overall, TSCO ranks 6th on our list of the best pet stocks to buy according to billionaires. While we acknowledge the potential of TSCO 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 TSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
