5. IDEXX Laboratories Inc. (NASDAQ:IDXX)
Average Price Target Upside Potential According to Analysts: 27.28%
Number of Hedge Fund Holders: 41
IDEXX Laboratories Inc. (NASDAQ:IDXX) is a global leader in pet healthcare innovation and it ranks among the top 5 on our list of the best pet stocks to buy according to analysts. It is an American multinational corporation that is primarily engaged in the development, manufacture, and distribution of products and services for the companion animal veterinary, livestock and poultry, dairy and water testing industries. IDEXX Laboratories Inc. (NASDAQ:IDXX) specializes in veterinary diagnostics, software, and water microbiology testing.
In the third quarter of 2024, the company reported a revenue of $976 million, marking a 7% increase from the same quarter in the previous year. This growth was largely driven by a 7% rise in the Companion Animal Group (CAG) segment and a strong 13% increase in water testing revenue. The company’s veterinary software and diagnostic imaging systems also saw an 11% revenue boost, showcasing the demand for its high-quality products. Additionally, IDEXX Laboratories Inc. (NASDAQ:IDXX) reported earnings per share of $2.80, reflecting an 11% increase year-over-year and improved operating margins.
IDEXX Laboratories Inc. (NASDAQ:IDXX) continues to expand its offerings. The company reported nearly 700 pre-orders for the new inVue Dx Cellular Analyzer, with shipping expected to begin in the fourth quarter. This innovative tool provides valuable clinical insights that save time for busy veterinary staff, further enhancing the company’s reputation as a leader in veterinary solutions.
With strong financial performance and a clear focus on expanding its product lineup, IDEXX Laboratories Inc. (NASDAQ:IDXX) presents a compelling investment opportunity. The ongoing demand for its diagnostic tools and software solutions positions the company well for future growth.
Analysts are also bullish on IDXX. The 12-month median price target set by analysts indicates a potential upside of 27% from the current stock price.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 41 hedge funds held stakes in IDEXX Laboratories Inc. (NASDAQ:IDXX). Baron Funds stated the following regarding IDEXX Laboratories Inc. (NASDAQ:IDXX) in its second quarter 2024 investor letter:
“Shares of veterinary diagnostics leader IDEXX Laboratories Inc. (NASDAQ:IDXX) detracted from performance. Foot traffic to veterinary clinics in the U.S. remains uneven, which will modestly hamper aggregate revenue growth. Despite this, IDEXX’s excellent execution has enabled the company to continue to deliver robust financial results. We believe IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth in 2024. We see increasing evidence that long-term secular trends around pet ownership and pet care spending have been structurally accelerated, which should help support IDEXX’s long-term growth rate.”
