IDEXX Laboratories carries a Beta of 2.26, indicating it tends to move more sharply than the overall market. When markets rise, IDEXX often outperforms; however, during downturns, it tends to lag behind. Currently, the stock shows a slight negative expected return of -0.11%. To get a clearer picture of its risk profile, review the downside variance and explore how the total risk alpha relates to the daily balance of power. These insights can help determine whether past performance trends are likely to continue or if the stock's behavior might change moving forward.
Key Arguments
With IDEXX Laboratories trading near its low price of
628.9 and a recent price change of just
0.15%, there’s potential for a rebound if the stock can break above its 50-day moving average of
637.86. The company’s solid net income of
887.9M and an operating margin of approximately 33.62% suggest underlying strength, making it worth watching for a possible entry point this month. However, with a maximum drawdown of
33.48% and a downside variance of
3.29, risk management should be a priority before jumping in.
What is the right price you would pay to acquire a share of IDEXX Laboratories? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with IDEXX Laboratories this year
Annual and quarterly reports issued by IDEXX Laboratories are formal
financial statements that are published yearly and quarterly and sent to IDEXX stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as IDEXX Laboratories often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
IDEXX Laboratories Gross Profit
IDEXX Laboratories Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing IDEXX Laboratories previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show IDEXX Laboratories Gross Profit growth over the last 10 years. Please check IDEXX Laboratories'
gross profit and other
fundamental indicators for more details.
Is IDEXX a risky opportunity?
Let's check the volatility. IDEXX is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind IDEXX (USA Stocks:IDXX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of an IDEXX Laboratories stock makes you a part-owner of that company.
IDEXX Laboratories Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering IDEXX Laboratories. The IDEXX consensus assessment is calculated by taking the average estimates from all of the analysts covering IDEXX Laboratories.
| Strong Buy3 | Buy3 | Hold6 | Sell1 |
| Strong Buy | 3 | 23.08 |
| Buy | 3 | 23.08 |
| Hold | 6 | 46.15 |
| Sell | 1 | 7.69 |
| Strong Sell | 0 | 0.0 |
A rising tide lifts all boats, and for IDEXX Laboratories (IDXX), this December could be a promising opportunity as its stock approaches a target price of 679.92, just below its 52-week high of 688.12. Despite a current ratio of 0.89X and a modest operating margin of 0.34%, the company’s solid revenue growth of 10.6% and cash flow from operations of 929 million highlight its strong financial footing. With 97.04% of shares owned by institutions and a low short percent of 2.91%, the stock shows signs of stability, though its beta of 1.58 suggests higher volatility. Given its healthy net income of 887.9 million and manageable debt-to-equity ratio of 3.27%, IDEXX remains a compelling pick for investors looking for growth within the Diagnostics & Research industry.
Will IDEXX continue to rise?
IDEXX Laboratories has a small Jensen Alpha of 0.06, indicating it’s slightly outperforming expectations, but recent price movements suggest a potential dip may be near. While there's some upward momentum, caution is advised, as a pullback could offer a better entry point for new investors. It’s uncertain whether this minor rally will hold or if the stock will retreat before climbing further. The stock exhibits relatively low volatility, with a skewness of 5.98 and kurtosis of 44.11, which can help traders gauge risk during different market conditions. During downturns, increased volatility often impacts IDEXX’s price, adding pressure on investors and prompting portfolio adjustments.
Monitoring volatility indicators can provide valuable insights into the stock’s risk profile amid shifting market trends.While some signs point to a potential rebound in December, investing in IDEXX Laboratories requires careful consideration. The stock’s current valuation sits close to its real value of approximately
657.45, with a possible upside target around
621.09. The analyst consensus remains largely positive, with 3 recommends to buy and 6 holds, suggesting that many see room for modest growth. However, a few analysts have issued a sell, and the valuation hype value of
630.32 indicates some optimism priced into the stock. For investors comfortable with the current range, there’s potential for a reversal, but it’s wise to keep an eye on downside risks, especially given the possible downside price of
617.93. Overall, the outlook is cautiously optimistic, but a measured approach is advisable until more definitive signals emerge..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Prophet is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ProphetEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of IDEXX Laboratories. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
