Choosing where to invest your money is becoming a little more difficult now that the economy is gradually returning to normal. Some of the pandemic trends will continue while others fizzle out.
Several sectors have the potential to pop as we transition to a post-coronavirus world. There could be an extended return to value stocks. Maybe gas and oil stocks will jump as travel booms. There are plenty of uncertainties ahead, yet there are no arguing people will continue spending money on animal health.
Pet stocks are clearly a solid play moving forward. However, selecting the best pet stock for your portfolio will prove challenging. Let’s take a look at two top pet stocks in Zomedica (ZOM) and Phibro Animal Health (PAHC).
ZOM makes products that improve animal health. In particular, the company focuses on products specifically meant for companion animals. Headquartered in Ann Arbor, Michigan, ZOM is currently priced at $0.82. The stock’s 52-week high is $2.91, and its 52-week low is a mere six cents.
ZOM has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. The stock has a grade of F for Stability and Ds in the Value, Sentiment, and Quality components. Investors who would like to find out how ZOM fares in additional POWR Rating components such as Momentum and Growth can do so by clicking here.
ZOM is ranked 220 out of 225 stocks in the Medical – Pharmaceuticals industry. You can find top stocks in this industry by clicking here. Analysts have primarily ignored ZOM. Only one analyst has provided a target price. This analyst anticipates ZOM will move to three cents. If the stocks dips to this price, it will have decreased by more than 64%.
Phibro Animal Health (PAHC)
PAHC is one of the world’s top animal health and mineral nutrition businesses. PAHC products include sustenance for cattle, swine, chickens, and other animals. The company also makes the ingredients used in products across many other industries, including automotive, personal care, chemical catalyst, and industrial chemical. In total, PAHC sells 1,200+ products across more than 60 countries.
PAHC has a forward P/E ratio of 22.84. This ratio is slightly high, but it must be noted that PAHC is trading within $2 of its 52-week high of $30.56. PAHC will win over some potential investors simply because it has a beta of 0.53. This figure indicates the stock is about half as volatile as the market.
PAHC has an overall grade of B and a Buy rating in our POWR Ratings system. The stock has a Value Grade of A and a Growth Grade of B. If you are interested in finding out how PAHC grades in the rest of the POWR Rating components, including Momentum, Stability, Sentiment, and Quality, you can do so by clicking here. PAHC is ranked 12th out of 77 stocks in the Medical – Services industry. You can find other top stocks in this industry by clicking here.
Which is the Better Buy?
PAHC is the better of these two stocks. PAHC has a much better rating in the POWR Ratings system. The company is also superior in its industry rank, while ZOM is ranked toward the bottom of its industry.
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ZOM shares fell $0.00 (-0.07%) in after-hours trading Thursday. Year-to-date, ZOM has gained 251.26%, versus a 15.88% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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