2024-04-17 12:54:13 ET
Summary
- Freshpet is a leading producer of fresh food for pets, benefiting from pet humanization trends and customers' willingness to pay premium prices.
- Despite robust growth and positive Q4 2023 results, Freshpet has yet to deliver annual profit.
- The stock has experienced strong growth but is expensive relative to peers, and short interest indicates negative market sentiment. Wait for a better entry point.
Freshpet, Inc. ( FRPT ) is a front-runner in producing fresh food for animals. The company has little competition and is benefiting from pet humanization trends shifting pet food buying behaviors in its favor. Fresh dog food has grown by 86% since 2021. Customers are willing to pay premium prices to spoil their animals. Freshpet invested heavily in advertising over the last year to take advantage of these tailwinds, and FY2023 results showed upward trending results, with serious growth and positive EPS results in Q4 2023. ...
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Freshpet: Solid Growth, But A Rough Entry Point