Since the Coronavirus has forced millions of Americans to retreat to their homes, the pet industry has exploded, and we continue to see an increase in pet adoptions nationwide.
The pandemic doesn’t seem to have hurt business. In a recent survey, only 15% of pet owners said that current economic conditions have made them spend less on their furry friends, while 21% reported spending more.
A recent article in InvestorsPlace.com noted that the American Pet Products Association estimates that at least 67% of U.S. households own a pet. Also discussed was the fact that the ProShares Pet Care ETF (CBOE: PAWZ) has grown by 30% vs. the S&P 500, which grew just 4% year to date.
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Chewy (NASDAQ: CHWY) is an obvious pick as lockdown restrictions are in place, pet owners are forced to shop online. Chewy’s digital storefront is a one-stop-shop for you to purchase pet food, toys and other supplies. CHWY stock has seen a six month return of 87%.
Freshpet (NASDAQ: FRPT) has seen its customer base grow from 1.8 million to 3.2 million in the past five years. Additionally, the six month return in its stock sits at 54% and second-quarter results for the company have been rock solid with a 33.2% increase in revenues to $80 million year-over-year.
Zoetis, (NYSE: ZTS) was spun off by Pfizer (NYSE: PFE) in 2013 at a time when it was the leader in animal health.
ZTS has been the crème de la crème as far as veterinary medicines and diagnostics are concerned. That is, however until now.
Here is an emerging company not mentioned in the article that needs to be on your radar.
Have a look at PetVivo (OTCQB: PETV).
PetVivo has yet to attract the attention of the ETF’s but the company did just announce regarding their patent that “Our biomaterial technology and the claims issued in this patent provides us extremely comprehensive coverage”
PetVivo is an emerging biomedical device company leveraging the investments in the human biomaterials and medical device industries to commercialize therapeutics to pets.
The company has a portfolio of 19 patents that protect the company’s pipeline of 16 products for the treatment of animals and people. Its lead product “Kush” is a veterinarian-administered intraarticular injection for the treatment of osteoarthritis in dogs and horses is scheduled for expanded commercial sales later this year.
Currently trading at around $.70 per share, with a market cap coming in at around $16 million, the stock was recently given a target price of between $1.74 and $2.32 per share by Marble Arch Research. You can download the full report here:
Marble Arch Research notes that PetVivo achieved a major funding milestone last month, removing the main obstacle to its product commercialization goals. Commercial production of its disruptive osteoarthritis treatment device, Kush®, for canines and equines, a market we estimate is worth ~$3BN in the US alone, is due to commence in September 2020.
The report continues “At ~1x FY23 sales, the stock is substantially undervalued relative to its comps mostly trading in a comparable 3X-4X P/S multiple range.”
Just recently a new successful Kush study came to light when Just 4 weeks ago, Fender Bender, a racehorse suffering from osteoarthritis, was put up for sale and claimed for $3,000.00 and the new owner treaded him with PetVivo’s Kush. Fender Bender won at Canterbury Park on August 4, 2020.
PetVivo (OTCQB:PETV) is benefiting from trials on the human side with a lower barrier to approval for pets.
According to The American Pet Products Association, almost 85 million households have a pet and over the last 30 years pet ownership has gone from 56% to 68% of all households.
It seems that PetVivo has value here. If you’re looking for a biotech that has not enjoyed a massive run yet, Pet Vivo may be the solution.
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