Puppy Adoption Stocks Are Booming
The World Health Organisation (WHO) is warning of mental health during this crisis and says household pets go virus-free. Millions around the world are cuddling up to their animal companions as a result, especially dogs.
They calm stress. They calm anxiety. They’re mood-boosters, and the walkies even provide some cardiovascular exercise. WHO let the dogs out!
Applications to foster pups have increased ten-fold over the past two weeks in disease-stricken epicenters like New York. Pet supplies have been the subject of stockpiling, and delivery times have been pushed back. If you’re thinking this must be good for some stocks, you’d be right.
Shares in Chewy have side-stepped the sell-off. The pet care e-commerce business is up 13% this year, and analysts rate the name a strong buy amid a price target of $35. We’ve seen clear evidence that investors will frenzy around virus-proof stocks. Remember Blue Apron?
Chewy IPO’d (initial public offering) mid-last year and has already become an Invstr community favorite. Almost a quarter of a billion dollars has been invested, with nine out of ten traders bullish. Pets At Home, the British brick-and-mortar version of Chewy, boasts a 71% successful trade rate, and let’s not forget how pet food is semi-recession-proof.
Don’t forget your exit point, though. You don’t want to be left “holding the bag” when the virus goes away, leaving economic devastation in its wake that could sadly mean many pets are surrendered for auction. “We don’t know what’s going to happen when the economic waves start hitting,” admits Lisa LaFontaine at adoption center Humane Rescue Alliance.
A dog is for life, not just for coronavirus! Do investors feel the same way about dog-driven stocks? Woof!