Here's Why IDEXX Laboratories (IDXX) Shares are Re-Rating to Historical Average

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% net of fees for the full year 2025, trailing the benchmark return of 8.66%. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as 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 19, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock closed at $630.73 per share. IDEXX Laboratories, Inc. (NASDAQ:IDXX) delivered a -9.10% return in the past month, and its shares gained 39.30% over the past twelve months. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a market capitalization of $50.461 billion.

Conestoga Capital Advisors stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its fourth 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. IDXX continued its trend of earnings beats and continued to show resilient organic revenue growth in the face of weak veterinary traffic trends. Shares continued to re-rate back to average historical valuation."

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 medical technology stocks to invest in. In addition, please check out our hedge fund investor letters Q4 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.