We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
On Apr 5, we issued an updated research report on Delaware NJ-based IDEXX Laboratories, Inc. (IDXX - Free Report) – a manufacturer and distributer of products and services mainly for the companion animal veterinary, livestock and poultry, water testing and dairy markets.
Over the last three months, IDEXX significantly outperformed the Zacks Categorized Medical - Instruments industry with respect to price movement, primarily backed by its latest addition to the coveted S&P 500 benchmark. The stock has till now gained 30.7%, in comparison to the broader industry’s 4.9%.
The raised EPS guidance for 2017 indicates a bullish trend in the days ahead. Further, the company’s consistent share buybacks reflect its strong free cash flow reserve.
Meanwhile, IDEXX continues to demonstrate solid growth globally buoyed by strong international expansion. The company is currently observing strong growth on the back of companion animal group (CAG) revenues in emerging markets such as China and Brazil.
Management also believes that the unprecedented wave of innovation will immensely benefit the company’s CAG platform, in the near as well as long term. These innovations include the recently launched Catalyst One, SDMA and SediVue.
While IDEXX’s share price outperformed the broader market over the last three months, its valuation looks stretched in terms of price-to-earnings ratio (P/E - F12M) when compared with its own industry. The stock currently trades at a P/E ratio of 50.5 compared with 27.7 for the broader industry. In fact, the industry’s current P/E has been close to the stock’s upper level in the last three months.
The company’s high dependence on third-party distributors continues to pose threat. Moreover, foreign currency fluctuations are expected to consistently hurt IDEXX’s growth.
IDEXX competes with several companies in the animal health space. Its companion animal veterinary diagnostic products and services compete with both reference laboratory service and in-clinic product providers. Its major competitors in the CAG business in North America are Antech Diagnostics, Abaxis, Inc. and Heska Corporation. Moreover, competitive landscape in the overseas market weighs on IDEXX. This fight over market share might dent results going ahead.
Zacks Rank & Key Picks
IDEXX currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Medical space include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 62.2% in the last one year compared with the S&P 500’s gain of 15.2%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasure surged 73.4% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 88.7% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
IDEXX Laboratories' CAG Revenues Solid, Competition Rife
On Apr 5, we issued an updated research report on Delaware NJ-based IDEXX Laboratories, Inc. (IDXX - Free Report) – a manufacturer and distributer of products and services mainly for the companion animal veterinary, livestock and poultry, water testing and dairy markets.
Over the last three months, IDEXX significantly outperformed the Zacks Categorized Medical - Instruments industry with respect to price movement, primarily backed by its latest addition to the coveted S&P 500 benchmark. The stock has till now gained 30.7%, in comparison to the broader industry’s 4.9%.
The raised EPS guidance for 2017 indicates a bullish trend in the days ahead. Further, the company’s consistent share buybacks reflect its strong free cash flow reserve.
Meanwhile, IDEXX continues to demonstrate solid growth globally buoyed by strong international expansion. The company is currently observing strong growth on the back of companion animal group (CAG) revenues in emerging markets such as China and Brazil.
Management also believes that the unprecedented wave of innovation will immensely benefit the company’s CAG platform, in the near as well as long term. These innovations include the recently launched Catalyst One, SDMA and SediVue.
While IDEXX’s share price outperformed the broader market over the last three months, its valuation looks stretched in terms of price-to-earnings ratio (P/E - F12M) when compared with its own industry. The stock currently trades at a P/E ratio of 50.5 compared with 27.7 for the broader industry. In fact, the industry’s current P/E has been close to the stock’s upper level in the last three months.
The company’s high dependence on third-party distributors continues to pose threat. Moreover, foreign currency fluctuations are expected to consistently hurt IDEXX’s growth.
IDEXX competes with several companies in the animal health space. Its companion animal veterinary diagnostic products and services compete with both reference laboratory service and in-clinic product providers. Its major competitors in the CAG business in North America are Antech Diagnostics, Abaxis, Inc. and Heska Corporation. Moreover, competitive landscape in the overseas market weighs on IDEXX. This fight over market share might dent results going ahead.
Zacks Rank & Key Picks
IDEXX currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Medical space include Inogen, Inc. (INGN - Free Report) , Orasure Technologies, Inc. (OSUR - Free Report) and ZELTIQ Aesthetics, Inc. . While Inogen sports a Zacks Rank #1 (Strong Buy), Orasure and ZELTIQ Aesthetics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 62.2% in the last one year compared with the S&P 500’s gain of 15.2%. The company reported a stellar four-quarter positive average earnings surprise of over 49.08%.
Orasure surged 73.4% in the last one year compared with the S&P 500’s gain. Its four-quarter average earnings surprise was a positive 123.5%.
ZELTIQ Aesthetics gained over 88.7% in the past one year, better than the S&P 500 mark. It posted a trailing four-quarter positive average earnings surprise of 12.03%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>