The demand for pet ownership has increased significantly amid the COVID-19 pandemic. This demand is expected to be sustained in the near term, benefitting the pet food industry. So, pet food stocks Chewy (NYSE:CHWY), Petco Health and Wellness (WOOF), and Freshpet (NASDAQ:FRPT) could be good additions to one’s watch list. Indeed, Wall Street analysts expect these stocks to rally by more than 35% in the near term. Read on.The demand for pet adoption has increased considerably since the onset of the COVID-19 pandemic, as people spend more time at home due to their remote lifestyles. According to American Society for the Prevention of Cruelty to Animals (ASPCA) survey data released earlier this year, one in five households has acquired a cat or dog since the onset of the pandemic. This totals approximately 23 million American households based on the 2019 U.S. Census.
The trend is expected to be sustained in the near term, benefitting pet food companies. Furthermore, according to a Brandessence Market Research report, the global pet food market is expected to reach $188.77 billion by 2027, growing at a 4.1% CAGR.
Given this backdrop, Wall Street analysts expect pet food stocks Chewy, Inc. (CHWY), Petco Health and Wellness Company, Inc. (WOOF), and Freshpet, Inc. (FRPT) to rally by more than 35% in price in the coming months. So, we think it could be wise to add these stocks to one's watchlist now.