Even a stock like that of Chewy Inc. (NYSE: CHWY) is only up about 1.9% year-to-date. That’s despite year-over-year growth in revenue and earnings. One reason for that is a price-to-earnings (P/E) ratio of around 98x. That’s pricing in a lot of future growth that investors don’t want to pay for, no matter how much they love their pets. 

But CHWY stock is only one example of pet stocks you can buy. Here are three names that analysts believe are moving higher, which means it could pay to be contrarian as 2025 comes to an end.  

Pet Stocks to Buy: Zoetis  

Zoetis Inc. (NYSE: ZTS) is the world’s leading animal health company. If you’re a pet owner, there’s a good chance your pet has received medicine or vaccines that are made by Zoetis. 

That said, as is the case with investing in any biotech company, investing in Zoetis is about the company’s “Multi-Year Disruptive Innovation Roadmap” that showcases a pipeline of medicines that are expected to be approved in the next five years.  

The bad news is that ZTS stock is down about 21% in 2025. But there are many reasons why investors should be optimistic. First, the stock is trading at around 21x earnings, which makes it fairly valued with the S&P 500. It’s also trading at a discount to its historical average.  

Second, analysts are forecasting over 11% in earnings growth in the next 12 months. And analysts give ZTS stock a price target of $178.89, which is a gain of 39% from its price on November 26. Plus, the stock pays a modest dividend. And with a 33% payout ratio; it’s a secure dividend that the company has increased for 14 consecutive years.  

Pet Stocks to Buy: Trupanion 

Trupanion Inc. (NASDAQ: TRUP) is one of the leading pet insurance companies. You could call it the right stock for the right time. In 2025, the global pet insurance market is expected to have a market value of $18.32 billion. And that’s expected to grow at a compound annual growth rate (CAGR) of 17.9% through 2030.  

Investors might have concerns about the TRUP stock valuation, which sits at around 135x as of November 26. That said, the company has been posting strong YoY earnings growth, a trend that analysts expect to continue with over 61% EPS growth in the next 12 months.  

A key driver of this growth is that Trupanion’s investments in advanced technologies, such as data analytics and direct payment software is yielding efficiencies that could mean expanding operating margins. And the company’s price-to-sales (P/S) and price-to-book (P/B) ratios are below their historic averages. 

That should give you more confidence when looking at the analysts’ consensus price target of $54, which is a 53% increase from the TRUP stock price on November 26.  

Pet Stocks to Buy: Petco 

Small-cap stocks remain out of favor with investors, but if you’re looking at pet stocks, Petco Health and Wellness Co., Inc. (NASDAQ: WOOF) is worth a close look. The company is a cross between Chewy and Zoetis with a portfolio of products focused on your pet’s health and well-being. 

WOOF stock trades as a penny stock with a price of $3.50 as of this writing. The price reflects the fact that the company has very little revenue and has only strung together two consecutive profitable quarters. 

However, that’s where the story may be getting more attractive. The stock’s P/S and P/B ratios are below their historic averages, and analysts give the stock a consensus price target of $3.93, which is a 14% gain from its price on November 26. More importantly, several analysts have been raising their price targets above consensus.  

Penny stocks come with intrinsic risks, but when you see a stock with solid fundamentals backed by analyst support, the speculation may be worth the risk.  

The Last Word on Pet Stocks 

Loving your pet and loving pet stocks are different things. However, the former does support the case for the latter. Pet ownership is on the rise and if population trends continue in their current direction, that percentage will only increase. 

That means that investing in pet stocks isn’t a case of if, but when. These are three stocks that allow you to build a position slowly, and profit over time.