Still Firing On All Cylinders
Since I last covered IDEXX Laboratories (IDXX) in August, shares have declined by about 10% while the S&P 500 has risen 8%. IDEXX reported a good quarter on Halloween, but nonetheless, the share price remains far ahead of the fundamentals. For this reason, I reiterate my neutral rating and believe the stock could continue to see multiple compression in spite of improving fundamentals. Valuation matters and IDEXX is not at an appealing valuation.
While investment strategies are unique to each investor, long-term investors must consider first the qualitative