Excellent Execution Drove IDEXX Laboratories (IDXX) Shares Amid Macro Challenges

Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Health Care Fund 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 4.58%, and its shares gained 22.08% of their value over the last 52 weeks.  On July 30, 2025, IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock closed at $572.09 per share, with a market capitalization of $46.009 billion.

Baron Health Care Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its second quarter 2025 investor letter:

“Shares of veterinary diagnostics leader IDEXX Laboratories, Inc. (NASDAQ:IDXX) contributed to performance for the quarter after reporting better than-expected financial results. Foot traffic to veterinary clinics in the U.S. remains under pressure, which has continued to hamper aggregate revenue growth. Despite macroeconomic challenges, IDEXX’s excellent execution has enabled the company to maintain strong performance. We believe competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth in 2025. We see increasing evidence that long-term secular trends around pet ownership and pet care spending have structurally accelerated, which should help support IDEXX’s long-term growth rate.”

Jim Cramer on IDEXX Laboratories, Inc. (IDXX): “I Just Can't Get My Arms Around It”

A veterinarian in a veterinary clinic examining a companion animal.

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the first quarter, which was 58 in the previous quarter. In the first quarter of 2025, IDEXX Laboratories, Inc. (NASDAQ:IDXX) reported organic revenue growth of 5% driven by 4.5% organic revenue gains in the CAG business, 7% organic growth in water, and 4% organic growth in LPD. While we acknowledge the risk and potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IDEXX LABORATORIES, INC. (NASDAQ:IDXX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered IDEXX Laboratories, Inc. (NASDAQ:IDXX) and shared the list of best stocks to buy according to Brasada Capital Management. In Q2 2025, IDEXX Laboratories, Inc. (NASDAQ:IDXX) contributed to Conestoga Capital Advisors’ performance. In addition, please check out our hedge fund investor letters Q2 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.