I’ve long found Pet at Home (LSE: PETS) an interesting FTSE 250 stock. It’s a leader in a UK petcare industry that enjoys permanent demand with decent long-term growth prospects.
Last year, an estimated 53% of UK adults owned a pet, up from 51% in 2020. And they spent £5.3bn on veterinary and other pet-related services in 2022, according to the Office for National Statistics.
Pets at Home’s latest trading update dropped today (30 January). Should I invest? Let’s discuss.
Attractive qualities
There are some things I immediately like here. First, the company is the top dog in the UK’s pet care space. Therefore, consumer brand awareness is strong, meaning it doesn’t need to spend a tonne of money getting its name out there.
Second, the majority of owners won’t stop looking after their pets even if the economy goes to the dogs (sorry). This means the stock could provide decent defensive qualities to my portfolio during a potential recession.
Third, I like the company’s diversification. It sells food and accessories, but many Pets at Home stores…
