With an increasingly growing number of the population actively adopting pets, the pet care industry’s growth seems bright. Against this backdrop, investors could scoop up shares of fundamentally stable pet industry stocks, Zoetis Inc. (ZTS), Chewy, Inc. (CHWY) and Trupanion, Inc. (TRUP), which are well positioned to capitalize on the boom in animal care.
A significant driver of the pet care market is the increasing number of pet owners worldwide. More people are adopting pets, driven by factors like companionship, emotional well-being, and social bonding. As pets become integral parts of families, the need for specialized pet care products and services is rising.
According to the American Veterinary Medical Association, the pet population has steadily increased since 1996. With the dog population rising from 52.9 million to a new peak of 89.7 million in 2024 and the cat population increasing from 59.8 million in 1996 to 73.8 million in 2024, spending for pet care has also been on an upward trend.
A Morgan Stanley report highlights the considerable scale of spending. Spending growth in the pet industry could reach 7% annually by 2030, from 3.9% in 2025. Moreover, annual household spending on pets is predicted to reach $1,445 per animal by 2026 and $1,733 by 2030, indicating a 113% increase in total industry spending to $261 billion by 2030.
Looking ahead, as per a report published by Mordor Intelligence, the pet care market is forecasted to reach $25.63 billion by 2030, growing at a CAGR of 4.2%.
Now, let us dive deep into the fundamentals of three pet industry stocks, starting with #3.
Stock #3: Zoetis Inc. (ZTS)
ZTS engages in the discovery, development, manufacture, and commercialization of animal health medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health products. The company’s offerings include parasiticides, vaccines, dermatology, anti-infectives, and pain and sedation.
On February 14, 2025, ZTS secured a conditional license for its Avian Influenza Vaccine, H5N2 Subtype, Killed Virus from the U.S. Department of Agriculture (USDA), Center for Veterinary Biologics. Allowing the company to commercialize its product, the license could enhance the company’s immunology lineup and aid in robust sales.
On February 4, 2025, ZTS updated the U.S. label for Librela® (bedinvetmab injection), following its submission of a supplement to the U.S. FDA. With 25 million doses distributed globally, approval by the FDA could guarantee its sale within the United States. This move could enhance the company's position in the U.S. pet care market.
For the fiscal 2024 fourth quarter that ended December 31, 2024, ZTS’ revenue increased 4.7% year-over-year to $2.32 billion. Its non-GAAP gross profit rose 8.4% from the year-ago value to $1.61 billion.
Additionally, non-GAAP net income and non-GAAP earnings per common share attributable to ZTS grew 11.1% and 12.9% from the prior year’s quarter to $632 million and $1.40, respectively.
Analysts expect ZTS’ revenue for the fiscal 2025 first quarter (ending in March) to increase marginally year-over-year to $2.20 billion. Its EPS for the same period is expected to rise 2% year-over-year to $1.41. Plus, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is impressive.
ZTS’ stock has surged 6.1% over the past five days and 15.8% over the past nine months, closing the last trading session at $165.31.
ZTS’ POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
ZTS has an A grade for Quality. Within the Medical - Pharmaceuticals industry, it is ranked #41 out of 152 stocks.
Click here to access ZTS’ Value, Sentiment, Stability, Momentum, and Growth ratings.
Stock #2: Chewy, Inc. (CHWY)
CHWY is engaged in the pure-play e-commerce business. It offers pet food and treats, pet supplies and pet medications, and other pet health products through its retail websites and mobile applications.
For the fiscal 2025 third quarter that ended October 27, 2024, CHWY’s net sales increased 4.8% year-over-year to $2.88 billion. Its income from operations amounted to $25.63 million, compared to a loss from operations of $9.72 million in the previous year's quarter.
Moreover, adjusted net income and adjusted EPS attributable to common Class A and Class B stockholders grew 33.8% and 33.3% from the year-ago value to $84.92 million and $0.20, respectively.
Street expects CHWY’s revenue and EPS for the fiscal 2025 fourth quarter that ended in January to increase 13% and 10.4% year-over-year to $3.20 billion and $0.20, respectively. Moreover, the company has surpassed the consensus revenue estimates in all of the four trailing quarters.
CHWY’s shares surged 27.2% over the past six months and 106.4% over the past nine months to close the last trading session at $34.46.
CHWY’s POWR Ratings reflect its robust fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
CHWY has a B grade for Quality. Within the Consumer Goods industry, it is ranked #14 out of 53 stocks.
To access CHWY’s Sentiment, Growth, Momentum, Value, and Stability ratings, click here.
Stock #1: Trupanion, Inc. (TRUP)
TRUP provides medical insurance for cats and dogs on a monthly subscription basis. The company functions through two segments: Subscription Business and Other Business.
On September 9, 2024, TRUP announced the official launch of its high-quality Trupanion product in Germany and Switzerland. The launch allows the company to expand into the European pet care market and open its door to future opportunities within the continent.
For the fiscal 2024 fourth quarter that ended December 31, 2024, TRUP's total revenue increased 14% year-over-year to $337.31 million. Its operating income amounted to $348 thousand. Moreover, the company's net income and net income per share came in at $1.66 million and $0.04, compared to a net loss and loss per share of $2.16 million and $0.05 in the previous year’s quarter, respectively.
The consensus revenue estimate of $337.76 million for the fiscal 2025 first quarter (ending in March) reflects a year-over-year increase of 10.3%. The company has surpassed the consensus revenue estimates in all four trailing quarters, which is noteworthy.
Looking ahead, the company’s revenue for the fiscal 2025 second quarter (ending in June) is expected to increase 8.5% year-over-year to $341.54 million.
TRUP’s stock has surged 11.8% over the past nine months and 40.9% over the past year to close the last trading session at $33.41.
TRUP’s fundamentals are mirrored in its POWR Ratings. The company has an A grade for Growth and Momentum.
Within the Medical - Services industry, TRUP is ranked #40 out of 63 stocks. In addition to the POWR Rating highlighted above, you can check TRUP’s ratings for Value, Sentiment, Stability, and Quality here.
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ZTS shares were unchanged in premarket trading Tuesday. Year-to-date, ZTS has gained 1.77%, versus a 1.90% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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