Freshpet is Tuesday's IBD Stock Of The Day, as the IBD 50 member advances above an official buy point amid a 26% surge since hitting recent lows in early August.
The Bedminster, N.J.-based pet food specialist boasts steam-cooked, grain-free and antioxidant-rich meals for canines as well as cats. Freshpet exclusively focuses on "fresh" pet food made with fresh meat, vegetables and fruits. Its products naturally carry a premium vs. the mostly "shelf stable" products from its more mature rivals, though some are starting to encroach on the fresh pet food market.
On Aug. 5, Freshpet pared its second-quarter net losses to $1.7 million from $17 million a year ago. That followed a surprise profit of $18.6 million in the first quarter vs. expectations for a $10.6 million loss. In both quarters, the company saw margins expand and hiked its full-year outlook.
The company is expected to turn profitable this year with earnings of 73 cents per share, according to FactSet. Profits are expected to jump 80% in 2025.
The company's rivals include General Mills, Nestle and J.M. Smucker. Those packaged-food giants own the Blue Buffalo, Purina and Milk-Bone pet food brands, respectively.
Freshpet Stock Performance
FRPT shares climbed 0.85% to close at 137.15 during market action on Tuesday, advancing above a 136.35 buy point in a seven-week consolidation. Freshpet stock has ventured above that entry multiple times since Aug. 23, according to MarketSurge. The 5% buy range extends to 143.17.
Shares jumped above the 50-day moving average and 10-week moving average when the company reported a second-quarter earnings beat on Aug. 5. After a brief pullback in mid-August, the stock bounced back above those support levels.
The stock has gained 60% in 2024 to a two-year-plus high as revenue has consistently grown in recent quarters. The company was profiled in IBD's New America on Aug. 23.
Freshpet stock has a 91 Composite Rating. The stock also has a 94 Relative Strength Rating and a 73 EPS Rating.
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