Idexx Laboratories Inc
Idexx Laboratories Inc
IBD Stock Analysis
- Pet testing provider barks at buy point of 561.62 out of cup with handle
- Shares moved up right side of cup base, fell, then found support at 50-day
- Stock holds bullish IBD Composite Rating of 95 out of best-possible 99
Industry Group Ranking
Cup with Handle
* Not real-time data. All data shown was captured at
1:02PM EDT on
The first quarter was strong for animal-health companies, Credit Suisse analyst Erin Wright said in a report to clients. She noted strength for Merck‘s (MRK) animal-health unit and “dog’nostics” leader Idexx. Idexx makes diagnostics and test equipment for veterinary clinics.
“Companion animal trends were robust in the first quarter for most constituents,” Wright said. “Livestock was also respectable, showing signs of recovery internationally, albeit recognizing the more protracted impacts of Covid-19 on livestock relative to companion animal.”
As a result, Idexx stock is now barking at a buy point of 561.62 out of a cup-with-handle base, according to MarketSmith.com. Shares were up 0.9% to 554.57 in afternoon action on the stock market today.
Idexx Stock Rebounds On Strong Quarter
The Covid environment was tough on pet adoption trends, analysts say. But demand is returning, according to PetHealth, a provider of management software for animal clinics. Last month, pet adoptions popped almost 40% vs. a single-digit decline in March, Wright said. With more pet adoptions comes a need for more testing at vet clinics.
In the first quarter, Idexx reported 12% growth in clinic visits for pets. New patients accounted for 3% of that growth. This suggests “the impact of recent pet adoptions is still working through the system,” J.P. Morgan analyst Chris Schott said in his note to clients.
Outside the U.S., Idexx is benefiting from lab growth in Europe and growth in clients registered for Idexx 360. The latter is a program to help vet clients add to their suite of diagnostics equipment.
“We see these trends continuing through 2021 and beyond as Idexx drives higher diagnostic utilization in a still underpenetrated ex-U.S. diagnostic market,” Schott said. He reiterated his overweight rating and 600 price target on Idexx stock.
Idexx posted double-digit growth for adjusted earnings and total sales in the first quarter. Both metrics accelerated vs. the prior quarter.
Shares Form A Handle
Idexx stock traveled up the right side of a cup base through late April before beginning a slight fall and forming a handle. Shares found support at their 50-day moving average, and are now climbing off the moving average.
Shares have a bullish Composite Rating of 95 out of a best-possible 99. That puts Idexx stock in the leading 5% of all stocks on key fundamental and technical measures.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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