5 Best Pet Stocks To Buy Now

2. IDEXX Laboratories, Inc. (NASDAQ:IDXX)

Number of Hedge Fund Holders: 45

IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products and services for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through CAG, Water Quality Products, LPD, and Other segments. On November 1, IDEXX Laboratories, Inc. (NASDAQ:IDXX) reported a Q3 non-GAAP EPS of $2.23 and a revenue of $841.66 million, outperforming Wall Street estimates by $0.19 and $11.66 million, respectively. It is one of the best pet stocks to invest in. 

On October 17, JPMorgan analyst Chris Schott reiterated an Overweight rating on IDEXX Laboratories, Inc. (NASDAQ:IDXX) but lowered the price target on the shares to $450 from $525. The analyst said vet visit pressures remain but appear largely well reflected in the valuations of animal health names.

According to Insider Monkey’s third quarter database, 45 hedge funds were long IDEXX Laboratories, Inc. (NASDAQ:IDXX), compared to 40 funds in the prior quarter. Terry Smith’s Fundsmith LLP held the largest stake in the company, consisting of 3.6 million shares worth $1.18 billion. 

Here is what Baron Funds specifically said about IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q2 2022 investor letter:

“Shares of veterinary diagnostics leader IDEXX Laboratories, Inc. (NASDAQ:IDXX) fell in the quarter. The broader veterinary industry benefited during the pandemic, as the pet population grew and owners working from home were often more attentive to their pets’ well-being. As the pandemic subsides, IDEXX may be adversely impacted by difficult year-over-year growth comparisons, and the company’s overseas earnings will likely suffer from the strengthening U.S. dollar.

Nevertheless, we believe that the pandemic accelerated the long-term secular trends impacting pet ownership and pet care, and we believe that foreign exchange rates will eventually move in the opposite direction. Furthermore, we believe that IDEXX’s competitive position is the strongest that it has ever been. We further expect the company’s proprietary testing innovations and its field sales force expansion to meaningfully contribute to its long-term growth rate and operating leverage.”