Pet Smart (symbol: petm) has taken a big dip recently but still has a P/E in the 20's. To the cautious investor Pet Smart (I'll refer to it by its symbol, PETM) may seem overpriced but if you look at the long term prospects of this stock it is a bargain.

Petm has the enviable position as the only large retailer of pet supplies, one of the fastest growing industries in America. The company is also activity engaged in share buy backs and throws off a small dividend. This is an undervalued stock in a fast growing sector. Just think if this where a technology company in the same position investors would have already driven the price up three times higher than it is right now. This stock is a hidden gem among companies with a lot of growth potential. If you have a low risk tolerance and your strategy is buy and hold this is a winner for your portfolio. This stock won't go unnoticed for long, buy a few shares today, you'll thank yourself for it later.

disclosure: The author owns stock in Petsmart