5 Best Agriculture Technology Stocks To Buy Now

Below we presented the list of 5 best agtech stocks to buy now. For our detailed discussion and a more comprehensive list please see 10 Best Agriculture Technology Stocks To Buy Now.

5. IDEXX Laboratories, Inc. (IDXX)

No of HFs: 41

Dollar Value of Hedge Fund Holdings: $545 million

Baron Asset Fund recently talked about IDXX in its 2020 Q2 and Q3 investor letters. Here is what they said in their Q2 letter:

Shares of IDEXX Laboratories, Inc., a veterinary diagnostic company, gained after reporting excellent quarterly results that exceeded expectations, despite the headwinds caused by the pandemic. Organic growth in IDEXX’s core companion animals group finished the quarter up double digits, and the company repurchased almost $200 million of stock in the quarter, its highest level in many years. Although visits to veterinary clinics fell approximately 30% during the peak of lockdowns, management indicated that trends “meaningfully improved” during the second quarter. To be prudent, management committed to reduce corporate expenses by $100 million, increased its cash position, and temporarily suspended future share repurchases. We believe the results demonstrated that IDEXX is a unique, competitively advantaged business that is likely to bounce back quickly and outperform across economic cycles.”

Here is an excerpt from Baron’s Q3 letter:

“Shares of veterinary diagnostics leader IDEXX Laboratories, Inc. contributed to performance in the quarter. Veterinary visits continued to exhibit a “V” shaped recovery from the initial pandemic-related slowdown, with visits growing at double-digit rates. IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth. Margins are increasing significantly. We believe margins can exceed 30% over time.”