If you’ve bought pet food lately, you’ve probably noticed it costs about as much as a fancy steak dinner at Ruth’s Chris. A 30-pound bag of kibble for your mini aussie is now $80.

But here’s what most people don’t realize… while pet food and toys are expensive, the real money in the pet industry is made behind the scenes… by companies supplying veterinary clinics. And one company has quietly dominated this space for years: Idexx Laboratories.

Idexx is a $45 billion company specializing in pet diagnostics, and its stock has ballooned 10,230% since 2000. That’s a 100-bagger… turning $10,000 into over a million bucks (but sure, keep buying memecoins). Yet despite its revenue jumping 50% and free cash flow per share skyrocketing 87% since 2020, the stock price hasn’t budged. In fact, it’s trading 41% below its all-time highs. When a company keeps growing while its stock price stagnates, it’s often a massive buying opportunity.

If you’ve ever taken your pet to the vet and they ran a blood test, there’s a good chance Idexx made money off you. The company supplies diagnostic machines that test for everything from kidney disease to diabetes. And every test requires consumable supplies… slides, cartridges, and cleaning solutions… that constantly need to be restocked. It’s the razor-and-blades model, and Idexx owns over 15% of the market.

With 147,000 machines installed in vet clinics worldwide, nearly 80% of Idexx’s revenue is recurring. That’s the kind of stable, predictable income that Wall Street loves and…  that makes a stock a great long-term play.

Over the last decade, pet owners have shifted from simply “owning a pet” to treating them like their actual children (minus the college tuition). And that’s great news for Idexx. Since 2010, pet life expectancy has increased by two years, which means more vet visits and more diagnostic tests. On top of that, geriatric pets require twice as much healthcare spending as younger animals. And with people spending record amounts on pet wellness, Idexx is sitting in the perfect spot to capitalize.

But, here’s what really got me intrigued… In 2025, Idexx is launching a new cancer diagnostic test, which it expects to cover over 50% of canine cancer cases within three years. This is a major innovation. Pet owners will spend whatever it takes to keep their animals healthy (you know the type of people I’m talking about), and a breakthrough in early cancer detection could add another massive revenue stream for Idexx.

One thing Idexx has done incredibly well over the years is buy back its own stock… reducing share count and increasing value for existing investors. Over the past decade, it’s shrunk its outstanding shares by 13%.

So, no… it’s not a stock that’ll dominate Reddit threads or inspire TikTok dance trends. But that said, Idexx is currently trading at one of its cheapest valuations in a decade, and management is planning to buy back 4% of shares in 2025. If they continue repurchasing shares while the stock is undervalued, long term returns are poised to go even higher. At 41% below its all-time highs, this could be a once-in-a-decade buying opportunity (if you're into buying stocks in the pet industry).

Stocks.News has positions in Idexx mentioned in article.