Idexx’s high p/e adds to your risk

Article Excerpt

IDEXX LABORATORIES INC. $676 is still a hold. The company (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 84.9 million; Market cap: $57.4 billion; Price-to-sales ratio: 18.9; No dividends paid; TSINetwork Rating: Average; makes equipment that veterinarians use to detect diseases in pets and farm animals. In the second quarter of 2021, sales jumped 29.6%, to $826.1 million from $637.6 million a year earlier. That’s partly because the COVID-19 pandemic has increased demand for pets as more people work from home. Earnings also rose 41.0%, to $2.20 a share from $1.16. The company expects to earn between $8.20 and $8.36 a share for all of 2021. The stock has soared 76% in the past year and trades at 81.6 times the midpoint of that range. That very high p/e adds to your risk as the stock could fall sharply if Idexx’s earnings start to slow. Idexx Laboratories is a hold. hold. …

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