Is IDEXX Laboratories Stock Underperforming the S&P 500?

Westbrook, Maine-based IDEXX Laboratories, Inc. (IDXX) focuses on enhancing the health and well-being of pets, people, and livestock. It develops and distributes products and services for the companion animal veterinary, livestock and poultry, water testing and dairy markets. With a market cap of $35.8 billion, IDEXX operates as a global leader in pet healthcare innovation.

Companies worth $10 billion or more are generally described as "large-cap stocks," IDEXX Laboratories fits this bill perfectly. Given the company’s dominance in the pet healthcare space, its valuation above this mark is not surprising. It operates in 70+ locations worldwide and serves customers in over 175 countries.

Despite its strengths, IDXX has plunged 25.1% from its 52-week high of $583.39 touched on Mar. 1. IDXX stock has declined over 12% in the past three months, lagging behind the S&P 500 Index’s ($SPX) 8.1% gains during the same time frame.

Over the longer term, IDEXX’s performance looks even grimmer. The stock has plummeted over 21.2% on a YTD basis and 19.8% in the past year, underperforming SPX’s 26.9% gains in 2024 and 30.3% returns over the past 52 weeks.

To confirm the bearish trend, IDEXX has traded below its 200-day and 50-day moving averages since late June with some fluctuations.

IDEXX Laboratories’ stock prices plunged 9.8% after the release of its disappointing Q3 results on Oct. 31. Although the company reported a 6.6% year-over-year growth in revenues, reaching $975.5 million, it missed Wall Street’s expectations. Furthermore, due to a decrease in pet owner visits and demand at U.S. veterinary clinics, the company reduced its full-year revenue growth guidance from the prior range of 6.2% - 7.8% to 5.5% - 6.2%, which unsettled investor confidence. On a positive note, IDEXX reported a 10.7% year-over-year growth in EPS to $2.80, which surpassed analysts’ estimates by a notable 4.1%.

IDEXX has performed slightly better than its peer Neogen Corporation’s (NEOG) 37.9% decline on a YTD basis and approximately 30% dip over the past year.

Despite its lackluster performance over the past years, analysts remain optimistic about the stock’s prospects. IDXX has a consensus “Moderate Buy” rating among the 11 analysts covering it. Its mean price target of $494.60 represents a notable 13.1% premium to current price levels.