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They shed, bark, shred our sofas and leave unpleasant surprises that Roombas have learned to avoid. All the same, Americans love their pets—big time. In fact, fidos, felines and other fauna are keeping humans company in more than two-thirds of all households in the U.S.

And we treat these freeloaders like family, if our spending on them is anything to go by. We dish out gourmet food, provide them with cutting-edge heath care, and indulge them with IQ-enhancing toys and designer outerwear. (You can even buy a Ralph Lauren Corp. [RL] cable cashmere dog sweater for your fur buddy for a mere $119.49, down from $150.)

Is it any wonder, then, that sales in the U.S. pet industry hit nearly $137 billion in 2022? True, inflation is causing some pet parents to cut back on high-end kibble and plush playthings—the cost of feeding our critters has gone up 15 percent year over year—but spending in the whole pet category still trends upward. Projections indicate that it could climb to $144 billion by year’s end.

In Europe as well, families put out around $31.1 billion on pet food alone in 2022 and that segment of the industry has seen an average 5.1% annual growth rate during the past three years, according to the European Pet Food Industry Federation.

Down, boy!

Investors are pet-fanciers too, and by now, many have put money behind some of the better-known purveyors of goods and services for the four-legged world. Despite all the upward indications of the industry, buying shares in the brand-name biggies hasn’t always been a walk in the park.

In 2021, for example, big-box retailer Petco Health and Wellness Co. Inc. (WOOF), saw its shares shoot up by 63 percent on the first day of trading post-IPO. Since then, though, its performance has been mixed. While revenue forecasts for the firm show a steady growth trajectory until 2026, earnings in the same time frame look flat, according to Simply Wall Street. And analysts last week were wary of the stock’s volatility.

Meanwhile, competitor Chewy (CHWY) has had its own ups and downs, going from a peak this year in February to a plunge this month. And Trupanion (TRUP), which sells a form of veterinary insurance, has also been bouncing around like a dog chasing a frisbee. After an impressive 464-percent gain over a five-year period ending in 2022, stock prices then plunged by 54 percent.

Sit and stay!

Of course, others in the field, like Idexx Laboratories Inc. (IDXX), continued to perform impressively. The animal wellness enterprise has seen its share price climb by just over 32 percent this year. It’s among the rare pantheon of companies producing 10 times returns in a decade.

As for Purina owner Nestlé SA (NSRGY), recently upgraded to a “buy” from at least one analyst, the company has predicted it could grow by as much as eight percent by the end of 2023.

Also doing well is Rover Group, Inc. (ROVR). The dog sitting and boarding service may see revenues grow by 76% in coming years, say some observers, resulting in more cash flow and potentially bumping the value of its stock.

Picks from a different litter

While these are the names that tend to grab investor attention, it may be worthwhile to look into lesser-known kitty corners for some promising opportunities.

For example, there’s Neogen Corp.  (NEOG), the international food safety and test kit company. It recently purchased Genetic Veterinary Sciences, which does DNA testing on dogs, cats and birds to enable their optimal health. Pet parents sometimes have the tests done just for fun, too, to see what breeds are in the mix of their mutts.

And not to be a downer, but there’s a future in the pet memorial trade. One company on top of the trend is Matthews International Corp. (MATW), maker of products for cemeteries. Many funeral homes, knowing we want to send off our furry friends in style, have instituted pet service options for clients. Matthews has been providing the big ones with the latest in pet cremation systems. Shares in the company delivered quarterly earnings of $0.74 per share compared to $0.58 a year ago and the firm is surpassing analysts’ expectations.

Finally, there’s Meowijuana, made by Smarter Paw Brand, a Lenexa, Kansas firm. You can’t buy shares in this catnip enterprise—it’s privately owned. I’ve included it just for fun. But keep an eye on it anyway: According to one source it grew by over 1,000 percent in the space of a year.