Market Overview

PetMeds Barking Up The Right Tree?

In-Depth Look at PetMeds Express:

PetMeds Express (NASDAQ: PETS) is a company that offers pet care products through the mail. They offer ordering through 1-800-PetMeds, the website 1800petmeds.com and direct through the mail. They offer products ranging from pet crates to treats to flea and tick medication. They are also a licensed pharmacy like any other brick and mortar pharmacy, so they can provide prescription pet medications.

The company's current president, Menderes Akdag, has been the C.E.O. since March 2001. In November 2002 he was appointed to the board of directors. He has served as the company's President since August 2005. Before PetMeds, Akdag worked in the banking industry as the Regional President of Union Planters Bank for Broward and Palm Beach county Florida markets.

Many companies see PetMeds losing revenue this year as people realize the convenience of getting pet prescriptions at a larger store such as Target. Although PetMeds claims to be the cheaper method of acquiring pet medication, recently some of their products have been more expensive than equivalent products at Target (even with their 20% ongoing discount). For example PetMeds Charges $32.99 for FiproGaurd Plus, while Target charges $26.99 for PetArmor.

ACTION ITEMS:

Bullish:
Traders who believe that PetMeds will be able to handle the competition might want to consider the following trades:

  • PetMeds (NASDAQ: PETS) The obvious trade here is to buy PetMeds
  • A short on some competetiors such as Target (NYSE: TGT) as a potential increase in business could negatively affect PetMeds' competitors

Bearish:
Traders who believe that PetMeds' competitors will have a negative effect on their business may consider an alternate position:

  • A short on Petmeds (NASDAQ: PETS) as the loss of business due to competitors could drive the stock down.
  • Target (NYSE: TGT) as the business gained could from PetMeds could have positive effects and create a better outlook by investors, driving the stock up

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Posted-In: Long Ideas Trading Ideas Best of Benzinga

 

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