Daily Stock Pick: PetMed Express

A portfolio of stocks I started September 3, named Volio Folio, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

I'm reviewing today the second of five consumer cyclical sector stocks today striving to be picked to join the Volio folio collection. This would be the third pick for Volio!

This consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is a small-cap pharmaceutical retailer named PetMed Express Inc. Their trading ticker symbol is PETS. I previously reported on this company on January 31, 2019, for the IVY portfolio.

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.

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

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

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

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

PETS Price

PetMed's price per share closed at $18.14 yesterday. A year ago its price was $36.86. In a year its price dropped $18.72 or nearly 51%.

Assuming PetMed's stock trades in the range of $15 to $30.00 this year, PetMed's recent $18.14 price could rise by $0.86 and get to $19.00 by mid-September 2020. If its past month's momentum continues.

PETS Dividends

PetMed's latest declared quarterly dividend was $0.27 paid August 9th.

That $0.27 Q payout added to the previous three equates to $1.08 annually and yields  5.95% based on yesterday's $18.14 closing price.

PETS Gains?

Adding the $1.08 annual estimated dividend to my $0.86 estimate of PetMed's price upside shows a $1.94 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today at the $18.14 recent stock price, we'd buy 55 shares of PetMed Express Inc shares.

A $10 broker fee paid half at purchase and half at sale will cost us roughly $0.18 per share.

Subtract that $0.18 brokerage cost from the estimated $1.94 gross estimated gain leaves a net gain of $1.76 X 55 shares = ($96.80) or a 9.7% net gain on a $997.70 investment.

Therefore, PetMed Express Inc,  whose trading ticker symbol is PETS now shows a possible net gain of 9.7% including a 5.95% dividend yield. It could be more, it could be far less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if PetMed Express Inc is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your Underdog Daily ...

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