Do you have a dog, a cat or even a horse at home?
Certainly, like us, these pets do fall ill or suffer from various bodily ailments and sickness. As a pet owner, do you buy medicines to help cure your pet’s illnesses or ease their pain too? If you do, then PetMed Express Inc.(PETS) is a go-to pharmacy for pets in the U.S.
For a non-pet owner like me, I think PetMed Express can still be a fantastic business in your portfolio. Let me share with you three reasons why PetMed Express Inc. should be in your portfolio.
PetMed Express is a pet pharmacy with over 11 million customers. They have the licensed to dispense prescription medications in all 50 states in the U.S. and the online veterinary pharmacy verification by the National Association of Boards of Pharmacy®.
Fundamentally, this PetMed Express has a solid Return On Equity (ROE) of 23% as of the trailing twelve months. One more essential criteria that caught my eye was their debt – No long-term debt! At the current share price of $29,34, it has a PE Ratio of 19.18.
Every investor love a company that pays a regular dividend, don’t you?
PetMed Express has been paying out dividend consistently for the past ten years and increasing the payout nearly every year! The payout has increased from $0.10 per share per quarter in 2009 to $0.30 per share per quarter in 2021. The increasing dividend payout brings about a current dividend yield of 4.07%.
PetMed Express share price has retreated 16.5% to $29.34 from $35.17 since the start of Q2. Based on PetMed Express stock charts, it is currently trending down and trading below the EMA200. Any further slide in price might see it slipped to around $22.50.
Surely I would want to add PetMed Express into my portfolio, but at this moment, I would rather keep an eye until a more apparent entry sign appears.
Want more stocks ideas?
When three highly experienced Investors and Founders of Ultimate Investing (UI) come together to talk about stocks investing, it pays to listen. From value investing to charting to options, hundreds of paying members have benefited from stock picks and ideas that have doubled or more.
The UI Founders are now sharing their stocks ideas and the industry they are eyeing in the Ultimate Investing SG telegram group at https://t.me/ultimateinvestorsg.
Ultimate Investing writer Ivan L has no position in PetMed Express, Inc. Disclaimer: What is shared and written here is solely the views and opinions. The article does not consider your risk or financial portfolio, nor does it constitute any financial advice or recommendation. Should you take any action or trade any of the stocks mentioned, you are solely and entirely responsible for any outcome. It is your responsibility to do your due diligence at all times.