Is Idexx (IDXX) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Idexx Laboratories (IDXX) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the animal diagnostic and health care sector, which is currently experiencing promising growth opportunities [3] Group 2: Earnings Growth - Idexx has a historical EPS growth rate of 12.5%, with projected EPS growth of 16.6% this year, surpassing the industry average of 12.4% [5] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as indicative of strong future prospects [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Idexx is currently at 6%, significantly higher than the industry average of -2.6% [6] - Over the past 3-5 years, Idexx has maintained an annualized cash flow growth rate of 14.6%, compared to the industry average of 6.3% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Idexx have been revised upward, with the Zacks Consensus Estimate increasing by 3.8% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, indicating strong potential for Idexx [8] Group 5: Investment Positioning - Idexx has achieved a Growth Score of A and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [10][11]