Every month I try to put some money aside for investment. One FTSE 250 Index The stocks I’m keeping an eye on this month are: Animals at Home Group (LSE: PETS).

Here’s why I’d buy some stocks if I could free up some money to invest.

Taking care of our animals

Unfortunately, there are no prizes for guessing what Pets at Home does. In fact, you’ve probably come across one of their stores or services, whether you’re a pet owner or not, which is a nod to their massive presence and brand strength.

The company offers a range of services from food and pet care to veterinary services. It operates through its retail outlets as well as online, in line with state-of-the-art shopping methods.

The stock has been on a downward trajectory over the past 12 months, down 19%. At this time last year it was trading at 379p, compared to current levels of 304p. However, I believe this simply gives me a better entry point into buying quality stocks.

My investment case

Research shows that pet ownership in the UK is at an all-time high. In fact, 57% of UK households now own a pet. Furthermore, Statista reports that pet ownership has been on the rise for years and this growth is set to continue. I think this is good news for Pets At Home, given its market position, brand strength and previous track record. Profits and returns can continue to grow.

Speaking of returns, the 4.6% dividend yield helps me build my investment case. It’s challenging to ignore this passive income opportunity. However, I understand that dividends are never guaranteed.

Moving forward, the falling share price has given me a great entry point right now. The stock is currently trading at a price-to-earnings ratio of just 13.

Finally, the company has an excellent track record of growth, performance, and market dominance. While I understand that past performance is no indicator of the future, these are all positives that I can draw from as I build my investment case.

Risk and my verdict

On the bearish side, it’s worth noting that economic volatility could have a negative impact on Pets’ earnings, as well as investor sentiment. That’s one reason I think the stock is down. Consumers are currently struggling with higher living costs and may not be able to afford to go wild with their beloved pets. I’ll be keeping an eye on the continued economic pressure.

My second concern for Pets At Home is the emergence of online-only competitors. Changing consumer habits – namely online shopping – have led to a rise in up-to-date kids on the block. These disruptors will want to erode Pets’ market dominance and don’t have to deal with the overheads of big-box retailers like Pets at Home.

All things considered, I think the pros of the investment far outweigh the cons. The dominant market position, the continued investment in the business to stay ahead of the pack – such as the recent rebranding – and the attractive passive income opportunity and enticing valuation build my investment.