Image source: Getty Images
Pets are much-loved but expensive to look after, I am often told. And pet ownership is growing in popularity. So FTSE 250 firm Pets at Home (LSE: PETS) could seem like an obvious way to try and benefit from that long-term trend as an investor.
But things are not always so simple in the stock market. Just because an area of business activity seems promising does not necessarily mean that all the companies operating in it will do well.
Pets at Home has seen its share price tumble 26% over the past year. It is now 56% off its 2021 high, back when locked down Labrador lovers were lavishing their companions with care.
That means the FTSE 250 firm now trades on a price-to-earnings ratio of 12, which does not sound very high. It also offers a 5.8% dividend yield, well above the 3.3% average for the FTSE 250.
So could this be a share to consider?
