Daily Stock Analysis: PerMed Express Inc

A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the third of five consumer cyclical sector stock candidates vying to be the sixth selection for the Vista portfolio.

My subject today is a small-cap pharmaceutical retailer, PetMed Express Inc. Its trading ticker symbol is PETS. This is my first report on PetMed Express  Inc for this Vista dog of the week portfolio. In April I selected it as a replacement for Ford the Volio portfolio, however.  

PetMed Express Inc, along with its and subsidiaries, is a leading nationwide pet pharmacy. The company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats, direct to the consumer. 

The company generates its revenue by selling pet medications and pet supplies primarily to retail consumers.

It sells its products through its Internet website; telephone contact center; and direct mail/print through brochures and postcards.

PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida.

I use three key data points to gauge dividend equities or funds like PetMed Express  Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

PETS Price

PetMed's price per share closed at $32.06 yesterday. A year ago its price was $18.55. Price rose 13.51 or just over 72.8% last year (thanks to sheltering in place).

If PetMed's stock trades in the range of $24 to $40 this next year, its recent $32.06 price might rise by $2.44 to reach $34.50 by October 14, 2021. 

PETS Dividends

PetMed's most recently declared quarterly dividend was $0.28 paid on August 7th. Dividends are estimated to total $1.12 per share annually and yield 3.49% at yesterday's $32.06 closing price.

PETS Gains?

Adding the $1.12 annual anticipated dividend to my $2.44 optimistic estimate of PetMed's price upside shows a $3.56 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in PetMed Express  Inc at $32.06, we would buy 31 shares of PETS stock.

A $10 broker fee paid half at purchase and half at sale would cost us about $0.32 per share.

Subtract that $0.32 brokerage cost from my estimated $3.56 gross gain per share results in a net gain of $3.24 X 32 shares = $97.20 for a 9.7% net gain on a $993.86 investment.

So it goes that PetMed Express Inc shows a possible 9.7% net gain including a 3.49% dividend yield. It could be more, it could be less.

All of the estimates above are speculation based on the past history of PetMed Express Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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William K. 4 years ago Member's comment

Interesting. I had been aware of PETMED but not examined it closely. Thanks for the education