After a Big Rally, is Pet Stock IDEXX Still a Howling Buy?

NASDAQ: IDXX | IDEXX Laboratories, Inc. News, Ratings, and Charts

IDXX – The pet healthcare industry has been among the major beneficiaries of the pandemic as working-from-home arrangements have afforded workers more time to care for their pets. IDEXX Laboratories’ (IDXX) improving financials owing to this trend should allow the stock keep soaring in the upcoming months.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

IDEXX Laboratories, Inc. (IDXX) is one of the 9 stocks featured in a new special report. Claim your copy now! 9 “MUST OWN” Growth Stocks for 2021.

IDEXX Laboratories, Inc. (IDXX) is a global leader in veterinary diagnostics, practice software and water microbiology testing. The company operates through Companion Animal Group (CAG), Water Quality Products, Livestock, Poultry and Dairy, and Other segments.

IDXX’s strong revenues in CAG business in the third quarter and its efforts to support the needs of customers have powered its stock price upwards. After an impressive rally in the third quarter, IDXX is expected to end the year at higher levels due to an increase in new patient visits and in-house consultations as stringent social distancing rules are relaxed.

The company’s exceptional demand for CAG diagnostic products and services has allowed it to gain 74% year-to-date. This impressive performance combined with several other factors has helped IDXX earn a “Strong Buy” rating in our proprietary rating system.  Here’s how our proprietary POWR Ratings system evaluates IDXX:

Trade Grade: A

IDXX is currently trading above its 50-day and 200-day moving averages of $421.74 and $337.18, respectively, indicating that the stock is in an uptrend. The stock gained 17.6% over the past three months, reflecting a solid short-term bullishness.

IDXX’s revenue increased 19.2% year-over-year to $721.80 million in the third quarter ended September 2020. The increase in revenue was primarily attributable to the significant growth in CAG Diagnostics. Gross profit rose 22.5% from the year-ago value to $422.61 million. Net income increased 34.3% year-over-year to $146.22 million, while EPS grew 35.7% from the prior-year quarter to $1.71 over this period.

Earlier this year, IDXX announced the expansion of its industry-leading imaging portfolio to include the ImageVue DR30 Digital Imaging System. This high-quality image and improved radiation safety will be accessible to a broader range of veterinarians at an affordable price.

Buy & Hold Grade: A

In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade takes into account, IDXX is pretty well positioned. The stock is currently trading just 5% below its 52-week high of $485, which it hit on November 9th.

The company’s net revenue grew at a CAGR of 10.8% over the past three years, while net income increased at a CAGR of 21.5% over this period. IDXX’s EPS increased at a CAGR of 23.1% over the past three years. This can be attributed to the company’s increasing utilization of diagnostics and its impressive global growth in CAG business.

Peer Grade: A

IDXX is currently ranked #4 out of 143 stocks in the Medical – Devices & Equipment industry. Other popular stocks in this industry are ResMed, Inc. (RMD), Varian Medical Systems, Inc. (VAR) and Alcon, Inc. (ALC)

ALC, VAR, and RMD gained 12.8%, 22.5%, and 35.3% year-to-date, respectively. This compares to IDXX’s 74% returns over this period.

Industry Rank: B

The Medical – Devices & Equipment industry is ranked #28 out of the 123 StockNews.com industries. The companies in this industry manufacture veterinary diagnostic products, medical equipment and supplies, medical instruments, dental equipment, and surgical appliances.

As medical manufacturers are being tasked with ramping up production to combat the pandemic, the demand for products in this industry has been sky high all year. Veterinary diagnostics have also seen increasing demand. Much of the increase in veterinary care is for wellness visits and pet vaccinations.

Overall POWR Rating: A (Strong Buy)

IDXX is rated “Strong Buy” due to its impressive financials, short- and long-term bullishness, solid price momentum, and underlying industry strength, as determined by the four components of our overall POWR Rating.

Bottom Line

IDXX is well positioned to soar in the upcoming months despite gaining 74% year-to-date. As pet owners continue to spend more on medical care for their dogs and cats amid the uncertainties surrounding the pandemic, the demand for veterinary services is expected to surge in the near future. Hence, the company may witness further growth based on its favorable earnings and revenue outlook.

Analyst sentiment, which gives a good sense of a stock’s future price movement, is pretty impressive for IDXX. It has an average broker rating of 1.5, indicating favorable analyst sentiment. All 5 Wall Street analysts that rated the stock rated it a “Strong Buy.” The consensus EPS estimate of $6.07 for the current year indicates a 24.1% improvement year-over-year. The consensus revenue estimate of $2.67 billion for the current year indicates a 10.8% increase from the same period last year.

Want to Find More Great Growth Stocks?  

Then get your hands on this just-released special report featuring the best growth stocks for 2021. Just click the link below to claim your copy!

9 “MUST OWN” Growth Stocks for 2021


IDXX shares were unchanged in after-hours trading Tuesday. Year-to-date, IDXX has gained 79.17%, versus a 15.35% rise in the benchmark S&P 500 index during the same period.


About the Author: Imon Ghosh


Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
IDXXGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!


Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

How to Outperform the Stock Market in 2021

The S&P 500 (SPY) is up over 70% from the ferocious bear market low set in March of 2020. Let me be emphatically clear…IT WONT BE THAT EASY IN 2021! So let’s discuss the 2021 stock market outlook including a game plan to outperform in the year ahead and my top 12 picks for today’s market. Read on for more…

:  |  News, Ratings, and Charts

Tesla Up 20% in 2021: Will the Rally Continue?

Tesla (TSLA) has gained more than 17% so far this year, outperforming broad market indices by a significant margin. Its dedication to technological advancements and strategic entry into some of the largest markets in the world should allow the company to keep its robust growth momentum going this year. Let’s look closer.

:  |  News, Ratings, and Charts

4 Computer Hardware Stocks Ready to Power Up in 2021

Remote working, online learning, and video gaming increased the demand for larger digital devices like laptop and desktop computers significantly in 2020. Because COVID-19 pandemic-driven trends are expected to continue this year, computer hardware companies that offer cutting-edge technologies and advanced features should see significant growth. So, we think global giants in this space, such as Apple (AAPL), Dell Technologies (DELL), HP Inc. (HPQ), and Lenovo Group (LNVGY), are poised to soar. Let’s look closer at these names.

:  |  News, Ratings, and Charts

Niu Technologies vs. Arcimoto: Which Electric Vehicle Stock is a Better Buy?

Niu (NIU) and Arcimoto (FUV) have been capitalizing on their niche market in the growing electric vehicle (EV) space. We believe that continued innovation and expansion should help both companies continue to thrive this year and beyond. But let’s find out which of these two stocks is a better buy now.

:  |  News, Ratings, and Charts

4 Computer Hardware Stocks Ready to Power Up in 2021

Remote working, online learning, and video gaming increased the demand for larger digital devices like laptop and desktop computers significantly in 2020. Because COVID-19 pandemic-driven trends are expected to continue this year, computer hardware companies that offer cutting-edge technologies and advanced features should see significant growth. So, we think global giants in this space, such as Apple (AAPL), Dell Technologies (DELL), HP Inc. (HPQ), and Lenovo Group (LNVGY), are poised to soar. Let’s look closer at these names.

Read More Stories

More IDEXX Laboratories, Inc. (IDXX) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All IDXX News