Jim Cramer Looked At These 7 Stocks Recently

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

Number of Hedge Fund Holders: 42

Discussing IDEXX Laboratories, Inc. (NASDAQ:IDXX), Cramer said, “Too inconsistent. I’ve gotta tell you, if Chewy were to come down, that is the one I’d like you to be in, Chewy.”

IDEXX Laboratories (NASDAQ:IDXX) creates and provides diagnostic products and services for veterinary care, livestock, poultry, dairy, and water testing industries. In December 2024, Cramer did a deep dive into the company and said:

“When we started this show, they used to be one of our favorites. They do software water microbiology testing… But after an incredible run from below $200 in March of 2020 to an all-time high of about $700 in August 2021, the stock’s been lost to the wilderness for a couple of years. That action mirrors what we’ve seen in many other pet stocks because, after a huge boom in pet adoption during the pandemic, there were a couple [of]  lean years that followed, including lower vet visits trends, something that impacts IDEXX.”

Cramer then discussed IDEXX Laboratories’ (NASDAQ:IDXX) last quarterly results, describing them as somewhat mixed. While the company missed revenue expectations, it beat earnings by 12 cents. However, Cramer noted that IDEXX lowered its full-year revenue forecast and simply reaffirmed its earnings outlook, which contributed to a less-than-optimistic outlook and led to the stock taking a hit. In the weeks following the report, the company also announced the departure of its CFO, though Cramer noted that the news did not have as significant an impact on the stock as he initially expected. He added:

“I think the company should benefit from a continued comeback for vet visits, which has been happening but at a slower pace than they expected. As we get further and further removed from the pandemic, I expect everything pet-related to keep trending back towards normal levels. And in the context of IDEXX, normal means strong secular growth thanks to increased vet visits and tremendous pricing power. Clearly, a leader in veterinary testing. At its high in 2021, IDEXX sold for 76 times the next year’s earnings estimate. Now it’s trading just 36 times next year’s earnings estimates… I think that’s a compelling entry point. Not ironclad, but pretty good.”