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IDEXX Gains 56.2% in a Year: What's Driving the Rally?
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Key Takeaways
IDEXX stock has risen 56.2% year to date, far outpacing its industry and the S&P 500.
IDEXX's international CAG diagnostic revenues rose 11% in Q2, with strong gains in consumables.
IDXX's cloud-native platforms like ezyVet, Neo and Vello delivered double-digit growth in Q2.
IDEXX Laboratories (IDXX - Free Report) has witnessed strong momentum year to date. Shares of the company have risen 56.2%, outperforming the 6.8% decline of the industry during the same time frame. The S&P 500 composite has increased 9.8%.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.
IDEXX develops, manufactures and distributes products and services, primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. The company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.
Factors Favoring IDXX’s Share Price Growth
IDEXX’s share price is trending upward, prompted by its strong global performance. The company is focused on growing its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. In line with this, IDEXX experienced a notable 11% organic rise in international CAG diagnostic recurring revenues in the second quarter of 2025. The company is particularly witnessing strong global gains in consumable revenues, banking on strong gains across Catalyst and inVue Dx.
In addition, IDEXX VetLab consumable’s organic revenue growth was driven by robust double-digit growth in international regions. This optimism, driven by a solid second-quarter performance and increasing revenues from all reportable business segments, is expected to contribute further.
Currently, investors are eyeing the company’s cloud-based software solutions, which are driving growth by improving clinic workflows and supporting greater utilization of diagnostics. In the second quarter, the company delivered strong performance across its practice information management systems and pet owner engagement tools. IDEXX’s cloud-native PIMS platforms, ezyVet and Neo, delivered double-digit placement growth in the quarter under review. Meanwhile, the newly introduced Vello software solution experienced continued momentum with double-digit sequential growth in active users.
Meanwhile, IDEXX’s raised financial outlook for 2025 looks encouraging. It now expects total revenues to be in the range of $4.21-$4.28 billion (previously $4.10-$4.21 million), indicating growth of 7.7-9.7% on a reported basis. Full-year EPS is now expected to be in the range of $12.40-$12.76 (earlier $11.93-$12.43), implying growth of 16-20% year over year.
Operationally, in the second quarter, gross margin expanded 92 basis points (bps) to 62.6% despite a 7.9% rise in the cost of revenues. Also, the operating profit in the quarter rose 541.4% year over year to $373.1 million, resulting in an operating margin expansion of 734 bps. These factors have positively impacted the stock, contributing to its rise.
Image Source: Zacks Investment Research
Factors That May Offset IDXX’s Gains
IDEXX’s business remains vulnerable to growing geopolitical complexities, supply-chain disruptions, shortages of healthcare staff, fluctuations in foreign currency exchange rates and volatility in capital markets. Furthermore, U.S. clinical visit growth levels have been constrained by the persistent staffing challenges at veterinary clinic. In the second quarter, IDEXX experienced a decline of approximately 2.5% in U.S. same-store clinical visits.
From a solvency viewpoint, IDEXX closed the second quarter of 2025 with cash and cash equivalents of $164.6 million, with a short-term debt of $654 million in the balance sheet (higher than the cash level). This indicates weak solvency, raising concerns.
A Look at IDXX’s Estimates
The Zacks Consensus Estimate for 2025 EPS has moved north 2.8% to $12.55 in the past 30 days.
IDEXX has an earnings yield of 1.9% against the industry’s -4.8%.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Boston Scientific (BSX - Free Report) andPhibro Animal Health (PAHC - Free Report) .
Estimates for Envista’s 2025 EPS have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield.
Boston Scientific, currently carrying a Zacks Rank #2, has an earnings yield of 2.9% against the industry’s -0.8%. BSX shares have rallied 31.3% in the past year. In the last reported quarter, it posted an earnings surprise of 4.2%.
Phibro, carrying a Zacks Rank #2 at present, has an earnings yield of 7.1% against the industry’s -0.8%. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. In the last reported quarter, it delivered an earnings surprise of 21.2%.
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IDEXX Gains 56.2% in a Year: What's Driving the Rally?
Key Takeaways
IDEXX Laboratories (IDXX - Free Report) has witnessed strong momentum year to date. Shares of the company have risen 56.2%, outperforming the 6.8% decline of the industry during the same time frame. The S&P 500 composite has increased 9.8%.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.
IDEXX develops, manufactures and distributes products and services, primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. The company also sells a series of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.
Factors Favoring IDXX’s Share Price Growth
IDEXX’s share price is trending upward, prompted by its strong global performance. The company is focused on growing its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. In line with this, IDEXX experienced a notable 11% organic rise in international CAG diagnostic recurring revenues in the second quarter of 2025. The company is particularly witnessing strong global gains in consumable revenues, banking on strong gains across Catalyst and inVue Dx.
In addition, IDEXX VetLab consumable’s organic revenue growth was driven by robust double-digit growth in international regions. This optimism, driven by a solid second-quarter performance and increasing revenues from all reportable business segments, is expected to contribute further.
Currently, investors are eyeing the company’s cloud-based software solutions, which are driving growth by improving clinic workflows and supporting greater utilization of diagnostics. In the second quarter, the company delivered strong performance across its practice information management systems and pet owner engagement tools. IDEXX’s cloud-native PIMS platforms, ezyVet and Neo, delivered double-digit placement growth in the quarter under review. Meanwhile, the newly introduced Vello software solution experienced continued momentum with double-digit sequential growth in active users.
Meanwhile, IDEXX’s raised financial outlook for 2025 looks encouraging. It now expects total revenues to be in the range of $4.21-$4.28 billion (previously $4.10-$4.21 million), indicating growth of 7.7-9.7% on a reported basis. Full-year EPS is now expected to be in the range of $12.40-$12.76 (earlier $11.93-$12.43), implying growth of 16-20% year over year.
Operationally, in the second quarter, gross margin expanded 92 basis points (bps) to 62.6% despite a 7.9% rise in the cost of revenues. Also, the operating profit in the quarter rose 541.4% year over year to $373.1 million, resulting in an operating margin expansion of 734 bps. These factors have positively impacted the stock, contributing to its rise.
Image Source: Zacks Investment Research
Factors That May Offset IDXX’s Gains
IDEXX’s business remains vulnerable to growing geopolitical complexities, supply-chain disruptions, shortages of healthcare staff, fluctuations in foreign currency exchange rates and volatility in capital markets. Furthermore, U.S. clinical visit growth levels have been constrained by the persistent staffing challenges at veterinary clinic. In the second quarter, IDEXX experienced a decline of approximately 2.5% in U.S. same-store clinical visits.
From a solvency viewpoint, IDEXX closed the second quarter of 2025 with cash and cash equivalents of $164.6 million, with a short-term debt of $654 million in the balance sheet (higher than the cash level). This indicates weak solvency, raising concerns.
A Look at IDXX’s Estimates
The Zacks Consensus Estimate for 2025 EPS has moved north 2.8% to $12.55 in the past 30 days.
IDEXX has an earnings yield of 1.9% against the industry’s -4.8%.
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Boston Scientific (BSX - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Estimates for Envista’s 2025 EPS have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield.
NVST sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific, currently carrying a Zacks Rank #2, has an earnings yield of 2.9% against the industry’s -0.8%. BSX shares have rallied 31.3% in the past year. In the last reported quarter, it posted an earnings surprise of 4.2%.
Phibro, carrying a Zacks Rank #2 at present, has an earnings yield of 7.1% against the industry’s -0.8%. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. In the last reported quarter, it delivered an earnings surprise of 21.2%.