4 Pet Stocks to Beat the Recession

Pet Stock #3 – Central Garden & Pet Co. (CENT)

Central Garden & Pet Co. (CENT) is one of the largest suppliers of pet goods in the United States,
and its supply of higher-margin products makes it better able to withstand a recession. Everything from premium pet food to toys, pet carriers and
grooming supplies are marketed through CENT’s multiple companies.

While CENT’s target customer is more of a high-end client, a group that certainly dwindles in a soft economy, management has committed and succeeded
at cutting costs to make it through the recession with ease.

The recent earnings report reflects CNET’s success in reaching that goal. CENT increased operating income by 52% to $51.6 million, compared to 33.9
million in the year ago period. Net income for the quarter came in at $31.1 million, or $0.44 per fully diluted share, compared to the previous year’s
$0.22 per fully diluted share.

With growth tactics that are already showing results, I like the momentum CENT has going into the end of the year and especially the holiday season.

I rate CENT an A, or strong buy.

Next – PetSmart Is Thriving, But Don’t Jump in Yet