PetSmart and Penn National rank 2, 073 and 2, 139 on the Forbes Global 2000 list, respectively.
The vast majority like holding PetSmart shares but not buying them at these levels.
If valuations do decline modestly on PetSmart, perhaps long-term investors will want to take interest.
Petsmart.com is bulking up by buying Acmepet.com and a share of the retailer Big Dog.
PetSmart bet that people would pamper their pets even while they cut spending elsewhere.
The dividend yield, paltry now, should grow as PetSmart has shown it regularly lifts its payout.
PetSmart (PETM) increased its fourth quarter profit by 31 percent, but issued a disappointing full year forecast.
PetSmart enjoys strong customer loyalty and could benefit from slowing growth at rival Petco Animal Supplies, a private company.
PetSmart posted first quarter earnings of 85 cents per share, surpassing the Zacks Consensus Estimate of 73 cents by 16.4%.
PetSmart now envisions a fiscal 2012 total sales increase of 9% to 10%, which are 150 basis points above its earlier projection.
PetSmart shares, which used to lean toward Target-level valuations, now trend closer, in PE ratio, to those of diamond and Prada sellers.
PetSmart is trading within its historically normal price-to-cash earnings and price-to-sales ranges as the market has finally rewarded PETM for its steady growth.
FORBES: Bad Dog! PetSmart Punished For Conservative Guidance
At the close of its second quarter (end of August) PetSmart announced same store sales were up 7% from the second quarter of 2011.
For investors, the problem with PetSmart is that pictures of yorkies in designer boots or installed in Coach handbags are no longer surprising or amusing.
PetSmart and PetCo both have expanded their pet apparel collections in recent years, introducing licensed collections from, among others, Martha Stewart and rocker Bret Michaels.
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For investors, the problem with PetSmart now is that pictures of yorkies in designer boots or installed in Coach handbags are no longer surprising or amusing.
Shares of Petsmart (PETM) are trading higher after the company posted fiscal first quarter earnings which came in ahead of expectations and raised its full year outlook.
PetSmart ( PETM), of all places, never accepted this trade-off.
PetSmart shares, which used to lean toward Target-level ( TGT) valuations, now trend closer to fast-growing companies like Chinese Internet provider Baidu ( BIDU), based in PE ratio.
PetSmart sells for 20 times estimated profits for the next 12 months and has a consensus forecast calling for 18% annualized earnings growth over the next three to five years.
Dan has worked in the advertising industry for over 20 years, developing campaigns for leading brands such as Porsche, Sea-Doo, PetSmart, California Pizza Kitchen (Kraft frozen), AirTran Airways and others.
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As for companies like Petsmart getting in the game, you had only to look at the abysmal records of other old-line retailers in cyberspace to realize that they were no threat.
Petsmart.com, founded by Idealab and 48% owned by retailer Petsmart, is edging ahead, having logged the most traffic of all online pet retailers in December: It had almost twice the revenue of Pets.com in its first six months.
The last few times we have written about PetSmart we have reiterated our Undervalued view of this specialty retailer as fundamentals improved in spite of a tough economy (spending on pets has proven to be less discretionary than many believed).
FORBES: Bad Dog! PetSmart Punished For Conservative Guidance
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