PetMeds Express, Inc. PETS recently collaborated with Pumpkin Insurance Services to make pet care more straightforward and affordable. With this partnership, its more than two million active customers have direct access to extensive pet insurance plans and optional preventative care coverage for an additional cost.
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PetMeds has started positioning itself more firmly in pet health and wellness owing to its established reputation in the pet pharmaceutical industry. Pet owners may now purchase integrated pet insurance in addition to competitively priced prescription drugs and premium pet foods on PetMeds.com, where they can also set up a same-day televet session through PetMeds’ VetLive pet telemedicine service.
Customers who purchase a Pumpkin Pet Insurance plan are eligible for reimbursement for 90% of all allowable veterinary costs. Preventive Essentials, a special wellness package created by Pumpkin in collaboration with veterinarians, is another choice for pet parents.
Although it is not insurance, individuals can include this benefit in their Pumpkin insurance plan to receive reimbursements for important preventative treatment and early diagnostics for their dogs and cats. Any veterinarian in the US or Canada will accept the Preventive Essentials wellness packages and Pumpkin Pet Insurance plans.
Significance of the Latest Collaboration
PetMeds customers may get dependable accident and illness coverage with only a few clicks at PetMeds.com, thanks to Pumpkin’s comprehensive and affordable pet insurance options. Existing PetMeds clients will have their pet’s history, veterinary information, and other vital data instantaneously connected to their insurance research and quote as a result of this collaboration.
Per a 2023 MarketWatch survey, nearly 33% of pet owners without insurance report avoiding taking their pets to the vet because they could not afford an expensive bill. The collaboration will help PetMeds’ customers offer better care for their pets by taking cost out of the equation, ensuring a brighter future for their four-legged family members.
Industry Prospects
Per a report by Grand View Research, the pet insurance market size was valued at $9.4 billion in 2022 and is estimated to expand at a CAGR of 17.04% by 2030. The growing pet population, adoption of pet insurance in underpenetrated markets, increasing veterinary care costs, initiatives by key companies, and humanization of pets are some of the key drivers of this market.
Progress Within PetMeds Business
During the first quarter, PetMeds registered growth of 11.5%, led by incremental sales from the combination of PetCareRx and growth in PetMed’s new customer sales.
The company welcomed approximately 86,000 new pet parents in the fiscal first quarter, representing new customer growth of 25% year-over-year. In addition, reorder sales of 68 million for the quarter increased 7% compared to the reorder sales of 63.3 million in the same period last year.
Further, with the acquisition of PetCareRx, the company also added 2.4 million of revenue associated with its PetCareRx membership programs, which provide bulk wholesale offerings — a diverse product range and an emphasis on value and savings for its customers.
Price Performance
In the past year, shares of PETS have declined 52.4% against the industry’s 15.7% growth.
Zacks Rank and Other Key Picks
PetMeds currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA ), Cardinal Health CAH and Align Technology ALGN, each carrying a Zacks Rank #2 (Buy).
DaVita has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 25.5% against the industry’s 8.9% decline in the past year.
Cardinal Health stock has risen 21.3% in the past year. Earnings estimates for the company have increased from $6.65 to $6.66 for 2023 and have remained constant at $7.56 for 2024 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.03%. In the last reported quarter, it posted an earnings surprise of 4.73%.
Estimates for Align Technology’s 2023 earnings have moved up from $8.77 to $8.78 per share in the past 30 days. Shares of the company have increased 27% in the past year compared with the industry’s rise of 14.3%.
ALGN’s earnings beat estimates in three of the trailing four quarters and missed in one. In the last reported quarter, it posted an earnings surprise of 9.90%.
