The COVID-19 pandemic has boosted the Animal Health industry, thanks to a bump-up in spending on pets. This is also because of the rise in pet ownership during this time. As the world went into lockdown with no social gatherings, pets became a source of companionship and distraction for individuals and families.
Per a report by American Veterinary Medical Association (AVMA), the percentage of pets in shelters being adopted increased to 58.36% in 2020 from 51.49% in 2019.
Going by an article published by AVMA, annual sales of pet products and services in the United States are nearing $100 billion for the first time as 2019 spending reached $95.7 billion, according to a Feb 27 announcement from the American Pet Products Association.
Pet product marketers like Amazon, Walmart reported a considerable rise in online pet food sales in 2020 compared to 2019. Further, there has been a consequent rise in the use of medicine and diagnostic tests for pets, boosting revenues for animal-health companies.
Just like the world around us, animal health is currently undergoing transformational change. Animals are receiving better care and medicines are becoming more targeted with the rise in pet adoption. The global animal health market size that was valued at $50.89 billion in 2020 is expected to reach $99.51 billion by 2028, at a CAGR of 8.8% (Per a report by Grand View Research)
The rise in disease occurrence has encouraged companies to produce advanced vaccines and pharmaceuticals. The high demand has also resulted in a subsequent increase in the number of companies undertaking consistent efforts to control pathogen contamination risks and food-borne diseases. In addition, rising number of government initiatives to promote animal health products is driving the market.
PetIQ, Inc. PETQ is a pet medication and wellness company. The company reported record first-quarter 2021 results driven by continued strength and momentum across pet health and wellness business. During the last-quarter earnings update, the company noted that the performance in the fast-growing set of customers in the e-commerce channel was fueled by the Capstar brand along with PetArmor Plus. The company also noted the plan to launch an advanced product line which will position it better to compete within the e-commerce and direct-to-consumer channels for pet supplements. PetIQ expects to continue to benefit from rising pet adoption, increase in dollar spend per pet and emphasis on affordable convenient pet healthcare.
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Currently, the stock carries a Zacks Rank #1 (Strong Buy). In 2021, the company is expected to report earnings growth of 135.8%. It has an estimated long-term earnings growth rate of 25%. Over the past six months, shares of the company have gained 9% compared with the industry’s rise of 2.6%. You can see the complete list of Zacks #1 Rank stocks here.
IDEXX Laboratories, Inc. IDXX is a developer, manufacturer and distributer of products and services, primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. The company derives the lion’s share of its revenues from the CAG segment. The company registered stellar first-quarter revenue growth within CAG. The company’s revenues grew 24.2% year over year driven by 26.5% growth in companion animal group (CAG) diagnostics revenues. Continued strength in clinical visits and related diagnostic products and services along with some benefits from lapping of prior-year COVID-19 impacts late in the reported quarter aided CAG Diagnostics’ segment recurring revenues.
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Currently, the stock carries a Zacks Rank #2 (Buy). In 2021, the company is expected to report earnings growth of 18.9%. It has an estimated long-term earnings growth rate of 19.6%. Over the past six months, the stock has gained 24.9% compared with the industry’s growth of 2.7%.
Phibro Animal Health Corporation PAHC is the leading global diversified animal health and mineral nutrition company. Currently, the company is focused on expanding its footprint in the poultry, swine and cattle industries, in both domestic and international markets. Phibro is working actively to expand in the cattle markets in the United States, specifically in Mexico and Brazil, as well as in Canada, Australia and South Africa. Phibro is also looking to expand into the multi-billion dollar pet care industry to add another pillar to its business. The company is also evaluating opportunities in the oral space for cats and dogs, a space with an estimated addressable market of more than $2 billion.
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Currently, the stock carries a Zacks Rank #2. In 2021, the company is expected to report earnings growth of 16.7%. It has a projected long-term earnings growth rate of 10.6%. Over the past six months, shares of the company have gained 49.4% compared with the industry’s growth of 2.6%.
Zoetis Inc. ZTS is a leader in the animal health space with a focus on both livestock and companion animal. During the last-quarter earnings update, the company confirmed the receipt of approvals for several leading products in China. On the livestock side, Fostera PCV MH, a one-shot vaccine for pigs that offers long-lasting combined protection against porcine circovirus type 2 (PCV2) and Mycoplasma hyopneumoniae infections, was approved along with ExcenRTU EZ (ceftiofur hydrochloride), a key anti-infective for cattle and swine.
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Currently, the stock carries a Zacks Rank #2. In 2021, the stock is expected to report earnings growth of 16.6%. It has an estimated long-term earnings growth rate of 12.9%. Over the past six months, shares of the company have gained 14% against the industry’s fall of 16.6%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Zoetis Inc. (ZTS) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report PetIQ, Inc. (PETQ) : Free Stock Analysis Report To read this article on Zacks.com click here.
It may not be practical — at least for now.
Take a look at this list of stock market holidays in 2022 to find out whether the market will be open on days like Labor Day, Black Friday, Christmas Eve and more.
Oil prices have bounced around quite a bit this year. Brent oil, the global-pricing benchmark, started 2022 below $80 a barrel before soaring into the $120s following Russia's invasion of Ukraine. With the prospect of higher oil prices, we asked some of our energy contributors what oil stocks they believe are best positioned to capitalize following OPEC's bold move.
PayPal is in trouble. "You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal's services, regardless of the purpose of the use," the document, called "Acceptable Use of Policy," said.
The market rally attempt is reeling, back near bear lows. What will investors discover on Columbus Day?
(Reuters) -Electric vehicle maker Tesla Inc sold 83,135 China-made vehicles in wholesale in September, smashing its record of monthly sales in China, according to a report released on Sunday by the China Passenger Car Association (CPCA). The number marks an 8% increase from August and outpaced the more than the 5% month-over-month growth of all wholesale electric vehicle sales in China, according to CPCA data. It set a new record for Tesla’s Shanghai factory since production began in December 2019, and topped the prior sales record of 78,906 in June, as the U.S. carmaker continues to invest in China production.
Each month I buy several dividend stocks to help build my passive income stream toward my goal of having it eventually offset my expenses. This October, I plan to add to my positions in Blackstone Group (NYSE: BX), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), Digital Realty (NYSE: DLR), Realty Income (NYSE: O), and NextEra Energy (NYSE: NEE) as more cash flows into my portfolio.
For the retail investor, the only certainty of our current market environment is uncertainty. Volatility is up, and the main indexes are showing deepening losses. As if that wasn't enough, at least one market bull is turning a bit more pessimistic. JPMorgan strategist Marko Kolanovic has been one of the more bullish voices on Wall Street in recent months, but current conditions have him pushing the timeline back. While he still believes that the S&P 500 can hit 4,800, or a 32% gain from current
The first quarter of 2022 has been difficult for retirement savers and retirees alike, and according to investment firm Charles Schwab, it was one of the worst quarters for fixed-income in decades. However, the rising yields and changed Federal Reserve … Continue reading → The post Charles Schwab Says Now Is the Time to Add This Asset to Your Retirement Portfolio appeared first on SmartAsset Blog.
The S&P 500 market index is down more than 30% year to date and the more growth-oriented Nasdaq Composite lost more than 30% over the same span. Taken together, these two effects make me want to pound the table about investing in Intel (NASDAQ: INTC) and International Business Machines (NYSE: IBM) right now. Semiconductor giant Intel's latest earnings report was admittedly disappointing.
Oil prices can be pretty unpredictable, impacting energy stocks
The three stocks that stood out to me are Taiwan Semiconductor (NYSE: TSM), Disney (NYSE: DIS), and Adobe (NASDAQ: ADBE). The company is a third-party manufacturer for chip leaders like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and dozens of other companies designing their own chips.
If you want income, you're in the right spot, but if you want growth, you might want to look elsewhere.
Alphabet Inc.'s ( NASDAQ:GOOGL ) price-to-earnings (or "P/E") ratio of 17.9x might make it look like a sell right now...
The year 2022 has been a painful journey for semiconductor manufacturers. Following the example of AMD , Nvidia and Intel , which are the three main players in the sector, 2022 is a year to forget .Their valuations are in recession. Advanced Micro Devices (AMD) currently has a market value of $94.4 billion, which is a decrease of at least $83 billion compared to December 31, 2021.
You would think this would be TIPS’ time to shine. Instead, the prices of Treasury inflation-protected securities—government bonds that are adjusted to keep up with inflation—have declined this year, even as inflation has soared. The comparable loss for ICE’s index of regular Treasury bonds was 13.5%.
The warehouse club has always been a little different when it comes to its policies on credit cards.
The company is reaping benefits from investments in 5G technology, but that's not necessarily enough to make AT&T stock a buy.
The Federal Open Market Committee will release the minutes from its September meeting on Wednesday, and the Bureau of Labor Statistics will report the September consumer price index on Thursday morning.
The company's longtime CEO announced his retirement, leading some analysts to contemplate a cut to the 14% dividend.