Do You Believe in the Long-Term Growth Potential of IDEXX Laboratories (IDXX)?

1 hour ago 1

Soumya Eswaran

Thu, May 14, 2026 astatine 9:39 AM CDT 3 min read

Baron Capital, an concern absorption company, released its Q1 2026 capitalist missive for the “Baron Asset Fund”. A transcript of the missive is disposable to download here. U.S. equity markets started the twelvemonth connected a affirmative note. In February, marketplace dynamics changed owed to concerns astir AI disruption, accelerated by U.S. and Israeli subject enactment successful Iran successful March, raising fears of higher lipid prices. The Fund declined 7.81% (Institutional Shares) for the quarter, versus a 6.35% diminution successful the Russell Midcap Growth Index. Performance was adversely impacted by overexposure to the bundle and services sectors and underexposure to the vigor industries. Despite this, the Firm remains optimistic astir the marketplace recognizing high-quality businesses owned by the Fund, fixed their resilience against perceived AI threats. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Baron Asset Fund highlighted stocks specified arsenic IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) is simply a US-based healthcare institution that manufactures products for the companion carnal veterinary, livestock and poultry, dairy, and h2o investigating industries. On May 13, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) banal closed astatine $528.68 per share. IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a -7.24% instrumentality successful the past month, and its shares gained 3.26% implicit the past 12 months. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a marketplace capitalization of $41.70 billion.

Baron Asset Fund stated the pursuing regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) successful its Q1 2026 capitalist letter:

"Performance successful Health Care was hindered by veterinary diagnostics leader IDEXX Laboratories, Inc. (NASDAQ:IDXX), whose shares terms declined contempt reporting better-than expected fiscal results. Foot postulation to veterinary clinics successful the U.S. remains modestly antagonistic but is poised to retrieve implicit the adjacent respective years. Even so, IDEXX’s fantabulous execution has enabled the institution to proceed delivering robust performance. We judge IDEXX’s competitory trends are outstanding, and we expect caller proprietary innovations—such arsenic InVue, MultiCue, and CancerDX—to beryllium meaningful contributors to maturation successful the years ahead. We besides spot expanding grounds that semipermanent secular trends astir favored ownership and favored attraction spending person structurally accelerated, which should assistance enactment IDEXX’s agelong word maturation rate."

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge money portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) astatine the extremity of the 4th quarter, up from 55 successful the erstwhile quarter. In Q1 2026, IDEXX Laboratories, Inc.'s (NASDAQ:IDXX) gross accrued 14% year-over-year connected reported and 11% connected integrated basis. While we admit the imaginable of IDEXX Laboratories, Inc. (NASDAQ:IDXX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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