Here’s an ‘inflation proof’ stock to own right now

Inflation continues to be the front and centre of all financial and economic debates these days. Still, Ron Coughlin says the pet industry is insulated from its horrors.  

Pet industry was resilient during the great recession

According to the CEO of Petco Health and Wellness Company Inc (NASDAQ: WOOF), the pet category can withstand inflation and economic downturns. This evening on CNBC’s “Closing Bell”, he said:

Coughlin confirmed that Petco has been able to pass on the increase in input costs to its customers without taking a hit to its unit volumes.

CEO Coughlin’s remarks on the Petco stock price

Shares of Petco are still down about 20% from their high in November 2021, but the year-to-date performance of the stock, the chief executive added, was good enough relative to the broader market.

Petco is up 5.0% from its IPO price, unlike 80% of the companies that went public in 2021. Its digital business is also better than a pure-play eCommerce player, CEO Coughlin concluded.