Westbrook, Maine-based IDEXX Laboratories, Inc. (IDXX) is a global leader in veterinary diagnostics and animal-health technology, providing diagnostic instruments, rapid tests, laboratory services, and software primarily for companion animals, along with water-quality and livestock/dairy testing. Headquartered in Westbrook, Maine, and founded in 1983, the company operates in more than 170 countries and serves veterinarians, food-production facilities, and public health organizations.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and IDXX fits the label perfectly. Its position as the global leader in veterinary diagnostics is supported by a highly diversified and integrated product ecosystem that includes in-clinic analyzers, rapid tests, reference lab services, imaging tools, and practice-management software, creating high switching costs and strong customer loyalty.
The company also benefits from a high-margin, recurring-revenue model driven by consumables and lab services, a strong R&D and innovation pipeline, and a broad global footprint that spans over 170 countries across companion-animal, livestock, and water-quality markets.
Shares of the veterinary giant have decreased 5.7% from its 52-week high of $769.98, reached on Nov. 26. Shares of IDXX have soared 14.5% over the past three months, considerably outperforming the Health Care Select Sector SPDR Fund’s (XLV) 3.3% return during the same time frame.
In the longer term, IDXX stock has rallied 68% over the past 52 weeks, outpacing XLV's 10.6% downtick over the same time period. Moreover, on a YTD basis, shares of IDXX are up 75.6%, compared to XLV’s marginal return.
To confirm its bullish trend, IDXX has been trading above its 200-day and 50-day moving averages since late April, with slight fluctuations.
IDXX shares climbed 14.8% on Nov. 3, after reporting its Q3 results. Its EPS came in at $3.40, surpassing Wall Street’s $3.14 estimate, while revenue of $1.11 billion exceeded expectations of $1.07 billion, driven by solid growth across its Companion Animal Group diagnostics segment and continued momentum in recurring services and consumables. Improved margins and strong demand for its diagnostic platforms supported earnings strength, prompting IDEXX to raise its full-year guidance.
The company now expects FY EPS of $12.81–$13.01 and revenue between $4.27–$4.30 billion, reflecting confidence in sustained growth and operational execution.
IDXX’s outperformance looks even more pronounced when compared to its rival, Zoetis Inc. (ZTS), which declined 30.7% over the past 52 weeks and 24.8% on a YTD basis.
Despite IDXX’s outperformance, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 12 analysts covering it, and the mean price target of $785.27 is a premium of 8.2% current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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