There’s only one downside to owning pets, and that is their relatively brief lifespan. As pet owners know, caring for ailing fur babies involves multiple experiences at the veterinarian’s office, visits that often come with multiple batteries of diagnostic tests. Providing those tests is Idexx Laboratories Inc. (IDXX), observes Jim Woods, editor of Investing Edge.
I’ve experienced the sadness accompanying this reality multiple times over the past several years, as I’ve had to bid farewell to my beloved 12-year-old chow chow, Hemingway, and my 20-year-old Persian cat, Danica. Both pets hung on bravely after their respective health diagnoses, and I am grateful they were able to make me smile even through their illnesses.
As for IDXX, its shares gapped to an all-time high in November 2025 after the company reported outstanding earnings that easily bested Wall Street estimates – a feat regularly accomplished by the Westbrook, Maine-based firm. That quarter’s earnings beat also came complete with a raised outlook for the full year.
Interestingly, the bull case for IDXX and other companies in the vet diagnostics space is the aging needs of animals born during the 2020 pandemic puppy boom. As these cuties mature, they will require more veterinary care. And of course, pet lovers are always willing to spend more on their pets...and own more animals. Why? Well, because life is more beautiful with pets.
Beautiful also are the financial metrics posted by Idexx, metrics that include earnings per share growth over the past several quarters and several years in the top 10% of all companies, per Investor’s Business Daily (as of Dec. 12, 2025). As for share price performance, the stock’s 52-week gain of 60.4% (as of Dec. 12, 2025) also vaulted it into the top 10% of all stocks on a relative price strength basis.
The combination of robust earnings growth and strong share price performance is the bullish cocktail I like to drink when adding a stock to my portfolio, and IDXX delivers on both ingredients. In 2026, I say we drink to the love of pets, and the love of profits, with Idexx Laboratories.
Recommended Action: Buy IDXX.
