Got $5,000? Here's the Ultimate Pick-and-Shovel Pet Stock (Spoiler: It's Not Chewy)

2026-02-20 11:05:00 ET

While Chewy and its Autoship feature for customers ordering pet food , treats, or medicine is about as "pick-and-shovel" as it gets, there is a hidden gem that may be the ultimate pick-and-shovel pet stock: Idexx Laboratories (NASDAQ: IDXX) .

Idexx Labs is a leading provider of a wide array of point-of-care platforms, diagnostic tests, and Software-as-a-Service offerings for the animal health industry, helping veterinarians care for our furry friends. The stock has delivered total returns of 20% annually since 1994, growing an initial $5,000 investment into $1.6 million today.

Though investing $5,000 today may not yield as dramatic returns as it has already seen -- primarily due to the company's sheer size now -- I still believe Idexx offers market-beating potential. Just how much do I like the stock? It is currently my daughter's second-largest holding, and we'll be looking to add to the position soon after Idexx's share price dipped 18% from its 52-week high.

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