U.S. Markets open in 47 mins
  • S&P Futures

    4,119.00
    -7.50 (-0.18%)
     
  • Dow Futures

    33,660.00
    -43.00 (-0.13%)
     
  • Nasdaq Futures

    13,743.50
    -50.75 (-0.37%)
     
  • Russell 2000 Futures

    2,184.10
    +0.10 (+0.00%)
     
  • Crude Oil

    61.06
    -1.61 (-2.57%)
     
  • Gold

    1,787.20
    +8.80 (+0.49%)
     
  • Silver

    26.21
    +0.37 (+1.43%)
     
  • EUR/USD

    1.2013
    -0.0027 (-0.2283%)
     
  • 10-Yr Bond

    1.5710
    +0.0090 (+0.58%)
     
  • Vix

    18.67
    +1.38 (+7.98%)
     
  • GBP/USD

    1.3913
    -0.0023 (-0.1683%)
     
  • USD/JPY

    108.0160
    -0.0540 (-0.0500%)
     
  • BTC-USD

    55,369.66
    -396.45 (-0.71%)
     
  • CMC Crypto 200

    1,268.50
    +34.09 (+2.76%)
     
  • FTSE 100

    6,875.64
    +15.77 (+0.23%)
     
  • Nikkei 225

    28,508.55
    -591.83 (-2.03%)
     

Announcing: IDEXX Laboratories (NASDAQ:IDXX) Stock Soared An Exciting 581% In The Last Five Years

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held IDEXX Laboratories, Inc. (NASDAQ:IDXX) shares for the last five years, while they gained 581%. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 13% gain in the last three months. But this could be related to the strong market, which is up 7.5% in the last three months.

Anyone who held for that rewarding ride would probably be keen to talk about it.

Check out our latest analysis for IDEXX Laboratories

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, IDEXX Laboratories achieved compound earnings per share (EPS) growth of 27% per year. This EPS growth is lower than the 47% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 76.30.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

We know that IDEXX Laboratories has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling IDEXX Laboratories stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that IDEXX Laboratories shareholders have received a total shareholder return of 104% over the last year. That gain is better than the annual TSR over five years, which is 47%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand IDEXX Laboratories better, we need to consider many other factors. For instance, we've identified 2 warning signs for IDEXX Laboratories that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. 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.

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