Pets have become an increasingly important part of the typical household, often receiving nearly the same level of attention, care, and health maintenance as human family members do.
With this theme, we seek to capitalize on the strong and rapidly growing demand for quality pet care.
Preventative-care treatments and testing for companion animals are growing as pet ownership itself grows. Consumer demand for these services is unwavering, and the diagnostic market outside the United States provides another long-term opportunity for growth.
Idexx Laboratories (IDXX)
Idexx is an animal healthcare company specializing in diagnostic testing, including in-office testing kits for veterinarians.
- The company has a 70% share of point-of-care facilities and has been growing its earnings at double-digit rates.
- Idexx’s testing kits, components, and supplies — many of which are disposable items — generate a healthy level of recurring revenue.
- Idexx operates in a three-player oligopoly market, and the company has spent more on R&D over the past five years than its competitors combined.