Idexx's Economic Moat Remains Solid, but Softer Consumer Confidence Could Weigh on Near Term

Idexx Laboratories has steadily increased its scale and reach in the veterinary diagnostic lab business to dig a wide moat. It is well-positioned to benefit from two key trends. First, pet ownership continues to grow, offering a secular tailwind since the late 1980s. Moreover, pet owners have demonstrated greater willingness to spend more on their animals, having more than tripled spending on pet products and services since 1994.