IDEXX Laboratories (IDXX) Looks Attractive on Recurring Revenue and High Customer Retention

1 month ago 17

Ricardo Pillai

Mon, July 27, 2026 astatine 7:00 AM CDT 3 min read

Jensen Investment Management, an plus absorption institution based successful the US, released its second-quarter 2026 capitalist missive for the "Jensen Quality Growth Equity Composite ". A transcript of the missive is disposable to download here. The money seeks semipermanent maturation by investing successful high-quality companies with durable competitory advantages. It returned 10.94% nett of fees successful Q2 2026, trailing the 15.20% instrumentality for the S&P 500 Index. US equities posted their strongest 4th successful astir six years arsenic easing Iran-related tensions, improving fiscal conditions, resilient user spending, and continued AI infrastructure concern lifted markets. AI and memory-related semiconductor stocks led the rally, portion lower-quality and momentum stocks outperformed the prime factors cardinal to Jensen's strategy. Quarterly show benefited from favorable banal enactment successful Communication Services and nary vulnerability to Energy and Utilities, portion enactment successful Industrials and Information Technology wounded comparative returns. The Portfolio remains balanced crossed prime compounders, AI beneficiaries, and antiaircraft businesses. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its second-quarter 2026 capitalist letter, Jensen Quality Growth Equity Composite highlighted IDEXX Laboratories, Inc. (NASDAQ:IDXX) arsenic a recently added position. IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products for the companion carnal veterinary, livestock and poultry, dairy, and h2o investigating industries. On July 24, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) closed astatine $544.32 per share. The one-month instrumentality of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 1.57%, and its shares mislaid 4.57% implicit the past 52 weeks. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a marketplace capitalization of $42.94 cardinal with a 52-week scope betwixt $518.55 - $769.98.

Jensen Quality Growth Equity Composite stated the pursuing regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) successful its Q2 2026 capitalist letter:

"IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops veterinary diagnostic tests and investigating equipment, integrated veterinary signifier absorption software, and products for h2o and livestock testing. Founded successful 1983 and headquartered successful Westbrook, Maine, the institution is led by CEO Mike Erickson, PhD, who succeeded Jay Mazelsky successful 2026; Mazelsky remains connected the committee arsenic Executive Chairman. IDEXX enjoys durable competitory advantages driven by a ample installed basal of instruments with precocious switching costs, resulting successful 99% lawsuit retention and astir 90% recurring revenue, reinforced by intelligence property, a beardown innovation record, and probe and improvement (R&D)-driven barriers to entry. Recurring gross and a absorption connected acute alternatively than optional veterinary tests trim sensitivity to economical cycles, and the institution maintains a precise low-debt equilibrium sheet. Weak share-price show successful 2026, amid a rotation toward cyclical exertion names, created a favorable introduction point. Near-term, favored and veterinary purchasing decisions are apt to stay pressured by ostentation and precocious substance prices; longer-term, we spot IDEXX continuing to make accordant gross and net maturation with returns connected superior good supra the outgo of capital, compounding shareholder worth implicit time."

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