PetMed Express reports profit on July 19th
PetMed Express, Inc. (NASDAQ: PETS) is a US-based online pet pharmacy that supplies veterinary medicines and other health products for dogs, cats, and horses. With a market cap of $ 662.8 million, PETS is still a small market cap, but it deserves a closer look as a profit approach.
The company is expected to announce its earnings on Monday, July 19, before the market opens. PetMed Express has exceeded earnings expectations in just one of the last four earnings reports. This resulted in slumps after gaining 12.7% in January and a bear margin of 17.7% a year ago in July. For the coming report, the options market is pricing in an above-average after-profit movement of 12%.
PetMed Express stock is down 2% in 2021 and has faced that break-even level since the start of the year for the past six months. With the stock churning, short sellers have hit the road, with short rates falling 22% over the last two reporting periods. Still, the 4.53 million stocks sold short still account for 23% of the total available circulation of PETS and the pent-up purchasing power of six days at average stock trading pace.
From a fundamental perspective, PetMed Express stock isn’t offering a great growth rate or particularly good deal, which is disappointing given its small market cap. PETS has a relatively high price / earnings-ratio of 21.51. Additionally, PetMed Express has only increased sales by 13% since 2018, and net income is down 18% over the same period, likely due to an increase in spending related to the COVID-19 pandemic.
That said, PetMed Express stock offers a good dividend yield of 3.72%, which comes from the stock’s forward dividend of $ 1.20. PETS has been paying dividends regularly since 2009, which makes the security of dividend payments relatively reliable. Additionally, PetMed Express’s dividend has increased 200% since it was first paid.
It’s also worth noting that PETS ranks low on Schaeffer’s Volatility Scorecard (SVS) with a score of just 17 out of 100 in Potential Premium sales candidate.