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 $58.6 million.
  • IDXX has traded 109.1490000000000009094947017729282379150390625 options contracts today.
  • IDXX is making at least a new 3-day high.
  • IDXX has a PE ratio of 39.
  • IDXX is mentioned 0.52 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., together with its subsidiaries, 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 39. Currently there are 3 analysts that rate IDEXX Laboratories a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for IDEXX Laboratories has been 745,500 shares per day over the past 30 days. IDEXX has a market cap of $7.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.35 and a short float of 8.2% with 10.02 days to cover. Shares are up 9.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates IDEXX Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • IDEXX LABS INC reported significant earnings per share improvement 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. This trend suggests that the performance of the business is improving. During the past fiscal year, IDEXX LABS INC increased its bottom line by earning $2.05 versus $1.78 in the prior year. This year, the market expects an improvement in earnings ($2.14 versus $2.05).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 70.8% when compared to the same quarter one year prior, rising from $25.96 million to $44.35 million.
  • After a year of stock price fluctuations, the net result is that IDXX's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The gross profit margin for IDEXX LABS INC is rather high; currently it is at 58.90%. Regardless of IDXX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 11.09% trails the industry average.

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