Trade-Ideas: Idexx Laboratories (IDXX) Is Today's Strong And Under The Radar Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Idexx Laboratories ( IDXX) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Idexx Laboratories as such a stock due to the following factors:

  • IDXX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $85.8 million.
  • IDXX is making at least a new 3-day high.
  • IDXX has a PE ratio of 37.7.
  • IDXX is mentioned 1.42 times per day on StockTwits.
  • IDXX has not yet been mentioned on StockTwits today.
  • IDXX is currently in the upper 20% of its 1-year range.
  • IDXX is in the upper 35% of its 20-day range.
  • IDXX is in the upper 45% of its 5-day range.
  • IDXX is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on IDXX:

IDEXX Laboratories, Inc. develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, water testing, and dairy markets worldwide. IDXX has a PE ratio of 37.7. Currently there are 5 analysts that rate Idexx Laboratories a buy, 2 analysts rate it a sell, and 1 rates it a hold.

The average volume for Idexx Laboratories has been 536,800 shares per day over the past 30 days. Idexx has a market cap of $6.9 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.93 and a short float of 15% with 9.78 days to cover. Shares are up 38.4% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Idexx Laboratories as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • IDXX's revenue growth has slightly outpaced the industry average of 4.3%. Since the same quarter one year prior, revenues rose by 13.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IDEXX LABS INC has improved earnings per share by 19.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, IDEXX LABS INC increased its bottom line by earning $3.48 versus $3.17 in the prior year. This year, the market expects an improvement in earnings ($3.86 versus $3.48).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 14.1% when compared to the same quarter one year prior, going from $45.69 million to $52.14 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, IDEXX LABS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $93.26 million or 16.97% when compared to the same quarter last year. In addition, IDEXX LABS INC has also vastly surpassed the industry average cash flow growth rate of -53.79%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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