Idexx is priced to perfection

Article Excerpt

IDEXX LABORATORIES INC. $465 is still a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 84.9 million; Market cap: $39.5 billion; Price-to-sales ratio: 15.3; No dividends paid; TSINetwork Rating: Average; www.idexx.com) makes equipment that veterinarians use to detect diseases in pets and farm animals. The stock has soared 70% in the past year. That’s partly because the COVID-19 pandemic has increased demand for pets as more people work from home. The company probably earned $6.10 a share in 2020, up 24.7% from $4.89 in 2019. The stock trades at 76.2 times that estimate. However, sales to veterinarians account for 90% of its revenue and a new wave of COVID-19 lockdowns could slow visits. Idexx Laboratories is a hold. hold…