Valued at a market cap of $34.2 billion, IDEXX Laboratories, Inc. (IDXX) develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, water testing, and dairy markets. The Westbrook, Maine-based company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.
Shares of this pet healthcare company have significantly underperformed the broader market over the past 52 weeks. IDXX has declined 10.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31.3%. Moreover, on a YTD basis, the stock is down 22.8%, compared to SPX’s 25.5% gain.
Zooming in further, IDXX’s underperformance looks even more pronounced when compared to the Health Care Select Sector SPDR Fund’s (XLV) 10.9% gain over the past 52 weeks and 6.6% return on a YTD basis.
On Oct. 31, shares of IDXX plunged 9.8% after its mixed Q3 earnings release. Its adjusted earnings of $2.80 per share surpassed the Wall Street estimates of $2.69, but its revenue of $975.5 million fell short of the consensus estimates of $979.6 million. Moreover, the company reduced its full-year 2024 revenue guidance, noting the near-term negative impacts on growth due to macro and sector conditions constraining pet owner visits and demand at U.S. veterinary clinics. This might have further dampened investor confidence.
For the current fiscal year, ending in December, analysts expect IDXX’s EPS to increase 3.7% year over year to $10.43. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the ten analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on five “Strong Buy,” one “Moderate Buy,” and four “Hold” ratings.
The configuration is slightly less bullish than three months ago, with six analysts suggesting a “Strong Buy.”
On Nov. 4, Piper Sandler analyst David Westenberg maintained a “Neutral” rating on IDXX and lowered its price target to $435, which indicates a slight 1.5% potential upside from the current levels.
The mean price target of $494 represents a 15.3% potential upside from IDXX’s current price levels. The Street-high price target of $566 suggests a massive upside potential of 32.1%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Buy the Dip: 2 'Strong Buy' Gold Stocks to Grab Now
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