Fierce Pharma discusses how animal health companies are dominating Wallstreet. Arlene Weintraub writes, "Shares of animal health companies are outperforming the stock market as a whole, thanks largely to strong performances from companies like diagnostics maker IDEXX Laboratories ($IDXX), veterinary hospital chain VCA ($WOOF) and drugmaker Zoetis ($ZTS).
Those companies have helped drive stocks in the broad arena of pet care up 35% this year, while the Standard & Poor’s 500 has risen just 8.3%, according to Reuters. IDEXX and VCA have skyrocketed 50% and 31% respectively so far this year.
What’s fueling the love of animals on Wall Street is the growing profile of pets, particularly in American households, experts say. “What you see driving that growth is the humanization of pets and consumers' willingness to spend on their pets very heavily," Joe Edelstein, an analyst at Stephens, told Reuters. "Part of that is because pets are part of the family."
In the U.S., consumer spending on pets rose 5% on an inflation-adjusted basis in 2015, whereas consumer spending as a whole was up just 3.2%, according to statistics from the U.S. Bureau of Economic Analysis quoted by Reuters. It was the fourth year in a row that pet-related spending outpaced overall consumer expenditures."