Tuesday's IBD 50 Stocks To Watch pick is pet food play Freshpet, which is trying to break out past an official buy point. Freshpet stock dropped 0.3% Tuesday morning, threatening to fall further below the entry.
The Bedminster, N.J.-based pet food specialist boasts steam-cooked, grain-free and antioxidant-rich meals for canines as well as cats. The company 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.
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 IBD MarketSurge. Profits are expected to jump 80% in 2025.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Freshpet Stock Hits A Buy Point
Last week, Freshpet stock broke out past a 136.35 buy point in a six-week cup base, according to MarketSurge chart analysis. The 5% buy range goes up to 143.17.
The stock's relative strength line is just off new highs, which is a bullish signal of outperformance. A strong RS line is an indicator of stock market leadership.
With outstanding price performance year to date, Freshpet stock shows a 91 out of a best-possible 99 IBD Composite Rating, according to IBD Stock Checkup. Freshpet stock has rallied about 56% this year.
With market risk decreasing, investors should be looking to incrementally raise their market exposure. And Freshpet stock is among the best ideas to consider.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Deckers Outdoor | 1,106.89 | Cup base | |
| Netflix | 697.49 | Cup base | |
| Nvidia | 140.76 | Cup base |
Source: IBD Data as of Aug. 27
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
