What Is IDEXX Laboratories, Inc.'s (NASDAQ:IDXX) Share Price Doing?

Today we're going to take a look at the well-established IDEXX Laboratories, Inc. (NASDAQ:IDXX). The company's stock saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$549 and falling to the lows of US$455. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether IDEXX Laboratories' current trading price of US$497 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at IDEXX Laboratories’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for IDEXX Laboratories

What's The Opportunity In IDEXX Laboratories?

According to our valuation model, IDEXX Laboratories seems to be fairly priced at around 11.64% above our intrinsic value, which means if you buy IDEXX Laboratories today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $445.19, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since IDEXX Laboratories’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from IDEXX Laboratories?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 39% over the next couple of years, the future seems bright for IDEXX Laboratories. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? IDXX’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on IDXX, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in IDEXX Laboratories, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.