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Based in Westbrook, Maine, IDEXX Laboratories, Inc. (IDXX) manufactures and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. Valued at a market cap of $39.7 billion, the company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IDEXX Laboratories fits right into that category. In addition to its flagship diagnostic and veterinary products, IDEXX's portfolio includes over 20 innovative solutions recognized for their high quality, accuracy, and impact on animal health and diagnostics.
Shares of IDXX are trading 15.03% below their 52-week high of $583.39, which they hit on Mar. 1. The pet-care company’s stock has declined 2.5% over the past three months, lagging behind the broader iShares U.S. Medical Devices ETF (IHI)
4.5% return over the same time frame.
In the longer term, IDXX stock is down 10.7% on a YTD basis, lagging behind IHI’s 9.4% gains. Shares of IDXX have gained 6.4% over the past 52 weeks, underperforming IHI’s 16.6% return over the same time frame.
IDXX has been trading below its 200-day moving average since mid-May and has remained mostly below its 50-day moving average since mid-April, indicating a bearish trend.
Shares of IDXX gained 3.1% following its Q2 earnings release on Aug. 6. The company’s revenue grew 6.3% year over year to $1 billion, exceeding Wall Street’s expectations. However, its net income dropped 9.3% to $203.3 million or $2.44 per share and missed the consensus estimates by 15%. Idexx expects full-year earnings to be $10.31 to $10.59 per share, with revenues in the range of $3.89 billion to $3.95 billion.
IDXX has also lagged behind its rival Thermo Fisher Scientific Inc. (TMO), which gained 17.3% on a YTD basis and 20.2% over the past 52 weeks.
Despite IDXX’s underperformance relative to the broader sector, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts in coverage, and the mean price target of $570.60 suggests a premium of 16% to its current levels.
On the date of publication, Rashmi Kumari 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.
