Fidelity Growth Strategies Fund Avoids IDEXX Laboratories (IDXX) Due to Questionable Growth Durability

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategy is a diversified equity strategy aimed at domestic midcap growth stocks. The approach focuses on identifying quality companies that deliver steady above-average growth and can outperform over time. The Fund (Retail Class shares) returned -3.44% in the quarter compared to the benchmark Russell Midcap® Growth Index’s -3.70% return. In Q4, the U.S. stock market continued its rapid rebound, driven by robust corporate fundamentals and strong spending on artificial intelligence. Mid-cap growth stocks underperformed, while large-cap stocks gained mainly from a narrow group of companies connected to generative AI, and small-cap equities benefited from interest rate sensitivity. As 2026 begins, the firm believes the business cycles in the U.S. and globally remain positive. The Strategy remains focused on companies possessing durable competitive advantages and growth potential. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a US-based healthcare company that manufactures products for the companion animal veterinary, livestock and poultry, dairy, and water testing industries. On February 4, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock closed at $642.94 per share. IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a -9.75% return in the past month, and its shares are up 39.60% over the past twelve months. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a market capitalization of $51.438 billion.

Fidelity Growth Strategies Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its fourth quarter 2025 investor letter:

"Not holding IDEXX Laboratories, Inc. (NASDAQ:IDXX) (+6%), a maker of veterinary products and a sizable benchmark component, also hurt. IDEXX is a solid and consistent business, and in its latest quarterly update, reported in November, it delivered strong results that materially outperformed expectations. But we don't think the current growth is sustainable over the longer term and prefer other investments in the mid-cap growth universe."

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 55 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the third quarter, up from 48 in the previous quarter. 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 a list of best healthcare stocks to buy for 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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