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IDEXX Laboratories (IDXX) Set to Join the S&P 500 Index
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Delaware, NJ-based IDEXX Laboratories, Inc. (IDXX - Free Report) is scheduled to join the coveted S&P 500 benchmark, after the market closes on Jan 4. This developer, manufacturer and distributer of products and services, primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets is currently part of the S&P MidCap 400 index.
Notably, IDEXX will be replacing St. Jude Medical, Inc. on the S&P 500 index as the latter is set to be acquired by Abbott Labs (ABT - Free Report) , a leading healthcare provider worldwide. IDEXX will be added to the S&P 500 Global Industry Classification Standard Health Care Equipment Sub-Industry index.
With a portfolio of 500 leading companies, that have approximately 80% coverage of the available market capitalization, the S&P 500 is an important metric for the U.S. equities. It is no wonder that the index is considered to be ‘the best single gauge for large-cap U.S. equities’. It is therefore a big boost for the investors holding shares of IDEXX.
IDEXX has been an important player in the Companion Animal Group market. Management believes that an unprecedented wave of innovations, which IDEXX already boasts and plans to bring to the market on a larger scale, will immensely benefit the company. These innovations include the recently launched Catalyst One, SDMA and SediVue.
This apart, IDEXX continues to demonstrate solid growth globally with strong international expansion. It continues to observe strong growth in the companion animal revenues in emerging markets such as China and Brazil, demonstrating the substantial long-term growth potential. Given the company’s consistent efforts to expand this commercial capability, we expect it to witness similar benefits in the upcoming quarters as well.
Further, the company’s trend of consistent share buybacks reflects its strong free cash flow reserve. The strategy of disciplined share count reduction has created considerable long-term value for current stockholders. Considering the healthy cash balance, IDEXX’s buyback activity represents encouraging prospects for the stakeholders.
In this regard we note that IDEXX significantly outperformed the Zacks categorized Medical - Instruments industry with respect to share price movement, over the past one year. Although the company posted a mixed third quarter with revenues missing the Zacks Consensus Estimate, solid organic revenue growth buoys optimism. The company’s raised earnings per share guidance for 2016 also indicates a bullish trend, going forward. Per the last share price movement, IDEXX surged 63.2% over the past one year compared with 1.24% gain of the broader industry.
NxStage Medical gained 24.1% over the last one year compared with the S&P 500’s 11.9% growth. The company has a four-quarter average positive earnings surprise of 46.3%.
Align Technology rallied 49.3% in the past one year, way better than the S&P 500’s 10.1%. It has a trailing four-quarter average positive earnings surprise of 23%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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IDEXX Laboratories (IDXX) Set to Join the S&P 500 Index
Delaware, NJ-based IDEXX Laboratories, Inc. (IDXX - Free Report) is scheduled to join the coveted S&P 500 benchmark, after the market closes on Jan 4. This developer, manufacturer and distributer of products and services, primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets is currently part of the S&P MidCap 400 index.
Notably, IDEXX will be replacing St. Jude Medical, Inc. on the S&P 500 index as the latter is set to be acquired by Abbott Labs (ABT - Free Report) , a leading healthcare provider worldwide. IDEXX will be added to the S&P 500 Global Industry Classification Standard Health Care Equipment Sub-Industry index.
With a portfolio of 500 leading companies, that have approximately 80% coverage of the available market capitalization, the S&P 500 is an important metric for the U.S. equities. It is no wonder that the index is considered to be ‘the best single gauge for large-cap U.S. equities’. It is therefore a big boost for the investors holding shares of IDEXX.
IDEXX has been an important player in the Companion Animal Group market. Management believes that an unprecedented wave of innovations, which IDEXX already boasts and plans to bring to the market on a larger scale, will immensely benefit the company. These innovations include the recently launched Catalyst One, SDMA and SediVue.
This apart, IDEXX continues to demonstrate solid growth globally with strong international expansion. It continues to observe strong growth in the companion animal revenues in emerging markets such as China and Brazil, demonstrating the substantial long-term growth potential. Given the company’s consistent efforts to expand this commercial capability, we expect it to witness similar benefits in the upcoming quarters as well.
Further, the company’s trend of consistent share buybacks reflects its strong free cash flow reserve. The strategy of disciplined share count reduction has created considerable long-term value for current stockholders. Considering the healthy cash balance, IDEXX’s buyback activity represents encouraging prospects for the stakeholders.
In this regard we note that IDEXX significantly outperformed the Zacks categorized Medical - Instruments industry with respect to share price movement, over the past one year. Although the company posted a mixed third quarter with revenues missing the Zacks Consensus Estimate, solid organic revenue growth buoys optimism. The company’s raised earnings per share guidance for 2016 also indicates a bullish trend, going forward. Per the last share price movement, IDEXX surged 63.2% over the past one year compared with 1.24% gain of the broader industry.
Zacks Rank & Key Picks
IDEXX carries a Zacks Rank #3 (Hold). A couple of better-ranked medical stocks include NxStage Medical Inc. and Align Technology, Inc. (ALGN - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical gained 24.1% over the last one year compared with the S&P 500’s 11.9% growth. The company has a four-quarter average positive earnings surprise of 46.3%.
Align Technology rallied 49.3% in the past one year, way better than the S&P 500’s 10.1%. It has a trailing four-quarter average positive earnings surprise of 23%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>