IDXX Laboratories: A Year of Decline

Fenella Juarez
3 mins

IDXX Laboratories stock (NASDAQ: IDXX) has declined by 48% this year, compared to a 18% decline for the broader S&P500 index.

BRAZIL - 2020/06/16: In this photo illustration the IDEXX Laboratories logo seen displayed on a ... [+] smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
I see IDEXX Laboratories as a leading provider of innovative healthcare solutions that improve the lives of people around the world. They are constantly striving to develop new and better ways to help people live healthier lives. I believe they will continue to be a major force in the healthcare industry, and I look forward to seeing what they accomplish in the future.

I believe that the IDXX stock is an attractive investment, despite its recent48% decline. The company has performed well in the past, and I believe that it has the potential to outperform the market in the future.

This 120% growth for IDEXX stock since late 2017 is primarily due to the company's P/S ratio rising 33% to 8.7x trailing revenues, from 6.6x in 2017. IDEXX Laboratories revenue growth of 68% to $3.3 billion over the last twelve months, compared to $2.0 billion in 2017, has also contributed to the stock's price appreciation. Additionally, a 4% fall in its total shares outstanding has helped to bolster the company's revenue per share metric, which rose 75% to $39.36 now, compared to $22.44 in 2017.

Factors of IDXX Stock Price ChangeTrefis
There are many factors that can affect the stock price of a company, and it can be difficult to predict how these factors will interact.

Despite some near-term headwinds, I believe that IDXX stock still has strong prospects and that investors will be better off using this dip as a buying opportunity for robust gains in the long term.

IDXX stock looks undervalued when compared to its peers. However, it is important to look at how these companies fare on metrics that matter. Trefis has valuable comparisons for companies across industries at Peer Comparisons.

The Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you may be surprised at how counter-intuitive the stock valuation is for Phibro Animal Health vs. Tri Pointe Homes. However, these discontinuities can offer opportunities for savvy investors to take advantage of.

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IDXX Return Compared With Trefis Multi-Strategy Portfolio Trefis
Looking at the IDXX return compared with the Trefis Multi-Strategy Portfolio, it's clear that the latter has outperformed the former over the past year.

The Trefis Price Estimates Dashboard is a powerful tool that allows investors to quickly and easily see the valuation of a company. The Dashboard provides a clear and concise view of a company's valuation, and is an essential tool for any investor looking to make informed decisions about their investments.

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