Paul Nouri, CFP
Hedge fund manager, long/short equity, healthcare

The Time Is Right For Investors To Buy PetSmart

Most people who are not too familiar with PetSmart (NASDAQ:PETM) think of the company as simply a retailer of pet supplies and accessories. Those who know the company more intimately (from visiting its stores or investing in it) know that PetSmart provides a full range of products and services for pets.

After trading in a range of $69-$77 from July - December of 2013, shares have fallen more than 12% to start the new year, compared with a 3.5% drop for the Market Vectors Retail ETF (NYSEARCA:RTH) and a less than 1% drop for the S&P 500.

(click to enlarge)

While it's unclear what the reason for the recent underperformance is, there are two factors that...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details