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IDEXX Laboratories, Inc. (IDXX), headquartered in Westbrook, Maine, is a prominent global leader in veterinary diagnostics, veterinary practice software, and water microbiology testing. With a significant market presence and a market cap of $40.79 billion, IDXX plays a vital role in enhancing animal health and safety. The company is dedicated to providing innovative diagnostic and software solutions that improve veterinary practice efficiency and patient care.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and IDEXX Laboratories fits this criterion perfectly, signifying its substantial size, stability, and influence in the veterinary diagnostics industry.
IDXX shares are trading 15.3% below their 52-week high of $583.39, which they hit on Mar. 1. The stock has declined 8.5% over the past three months, underperforming the Health Care Select Sector SPDR Fund (XLV), which has dropped 1.3% over the same time frame.
In the long term, IDXX is down 11.1% on a YTD basis. However, the shares have gained 2% over the past 52 weeks. In comparison, XLV has gained 7% in 2024 and 11.4% over the past year.
To confirm the recent bearish price trend, IDXX has been trading below its 50-day and 200-day moving average since late June.
IDXX reported Q1 earnings on May 1, and the stock declined 5% that day. The company reported earnings of $235.6 million, or $2.81 per share, surpassing Wall Street expectations of $2.68 per share. However, the company’s revenue of $964.1 million slightly missed the forecasted $965.4 million. For the full year, IDXX anticipates earnings between $10.82 and $11.20 per share, with projected revenue ranging from $3.9 billion to $3.97 billion.
Highlighting the contrast in performance, one of the industry participants, Zoetis Inc. (ZTS), has marginally outperformed IDXX, declining 10.6% on a YTD basis.
Despite its recent underperformance relative to XLV, analysts are moderately optimistic about IDXX's prospects. The stock has a consensus rating of "Moderately Buy" from 11 analysts in coverage. The mean price target of $578.67 reflects a 17.1% premium over 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.
