CHWY - PetIQ looks like a 'rare bargain' in the sector: Barron's

With a sharp rise in share price so far, PetIQ ([[PETQ]] +9.1%) is on course to post what could be its biggest one-day gain in nearly a year after a ~11.8% recorded in late April 2020.In its latest issue, Barron’s highlighted the company’s potential calling the stock ‘one of the few bargains in the sector.’Despite the low margin distribution business, the animal clinics, belonging to its services segment is in a post-pandemic recovery while its branded products generate healthy margins, the article noted.Trading at 19x its 2022 forward earnings, the company looks cheaper in the flourishing per care sector compared to rivals such as Chewy ([[CHWY]] -5.2%), FreshPet ([[FRPT]] -2.0%), Idexx Laboratories ([[IDXX]] -1.3%), and Zoetis ([[ZTS]] -0.0%).However, Seeking Alpha contributor, The Value Investor with a neutral view on the stock highlights the growth prospects attributed to PetIQ by investors without any concerns about the company’s ‘very high’ leverage.

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PetIQ looks like a ‘rare bargain’ in the sector: Barron’s