IDEXX Laboratories (IDXX) Surged Following Strong Earnings

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Mid Cap Composite returned -3.2% net-of-fees in the third quarter, compared to a 2.8% gain for the Russell Midcap Growth Index. The strategy’s focus on high-quality, profitable companies struggled to keep pace in the quarter amid risk-on dominance. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. The one-month return of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was -1.74%, and its shares gained 38.06% of their value over the last 52 weeks. On October 21, 2025, IDEXX Laboratories Inc. (NASDAQ:IDXX) stock closed at $637.13 per share, with a market capitalization of $50.97 billion.

Conestoga Capital Advisors stated the following regarding IDEXX Laboratories Inc. (NASDAQ:IDXX) in its third quarter 2025 investor letter:

"IDEXX Laboratories Inc. (NASDAQ:IDXX) is the industry leader in providing instruments (and consumables) used in diagnostics, detection, and information systems for veterinary, food, and water testing applications. Earnings for the quarter were strong as organic revenue growth accelerated, despite weak veterinarian visits, and the company saw rapid adoption of their latest premium instrument."

IDEXX Laboratories Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held IDEXX Laboratories Inc. (NASDAQ:IDXX) at the end of the second quarter, compared to 51 in the previous quarter. IDEXX Laboratories Inc.'s (NASDAQ:IDXX) revenue increased 11% as reported and 9% organically in the second quarter of 2025. While we acknowledge the potential of IDEXX Laboratories Inc. (NASDAQ:IDXX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered IDEXX Laboratories Inc. (NASDAQ:IDXX) and shared the list of best healthcare stocks to buy and hold for 5 years. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.