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Is Now An Opportune Moment To Examine IDEXX Laboratories, Inc. (NASDAQ:IDXX)?

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·3-min read
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IDEXX Laboratories, Inc. (NASDAQ:IDXX) received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$553 at one point, and dropping to the lows of US$430. 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$436 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.

View our latest analysis for IDEXX Laboratories

What's the opportunity in IDEXX Laboratories?

The stock is currently trading at US$436 on the share market, which means it is overvalued by 21% compared to my intrinsic value of $361.64. This means that the opportunity to buy IDEXX Laboratories at a good price has disappeared! But, is there another opportunity to buy low in the future? Since IDEXX Laboratories’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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.

What does the future of IDEXX Laboratories look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

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. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 43% 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? It seems like the market has well and truly priced in IDXX’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe IDXX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on IDXX for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for IDXX, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into IDEXX Laboratories, you'd also look into what risks it is currently facing. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of IDEXX Laboratories.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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