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Investors Business Daily
Investors Business Daily
Business
VIDYA RAMAKRISHNAN

Pets Love This Stock Even As It Offers Treats To Investors

Believe it or not, pet food can drive some stocks up. That seems to be the case for Freshpet which has formed a three-weeks-tight pattern with a buy point of 116.96 and is today's selection for IBD 50 Stocks To Watch.

The three-weeks pattern could feel like the stock is just going sideways within a small range. But at the same time, IBD MarketSurge chart tools show that it has been doing better than the S&P 500. Year-to-date, the stock has gained 33% while the S&P 500 has risen 9%.

Shares gapped up on Feb. 26, after Freshpet reported its first quarter of profitability. Sales grew 30% to $215.4 million and exceeded the company's own forecast with earnings of 38 cents a share.

For the current quarter, analysts polled by FactSet expect sales of $216.2 with a loss of 23 cents per share. But for the full year, analysts expect profits of 3 cents a share.

High RS Rating For Pet Food Maker

Freshpet makes and distributes pet food to grocery, club, pet specialty and other retail outlets.

The company has a Composite Rating of 92 and EPS Rating of 72. The Relative Strength Rating shows the stock has done better than 95% of stocks in the IBD database.

Mutual funds own 78% of outstanding shares of the pet food stock. This is also a stock under accumulation in recent weeks and has a top notch Accumulation/Distribution Rating of A+.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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