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Idexx Laboratories vs. ResMed: Which Stock Might Rally Next?

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  Published in Stocks and Investing on Tuesday, November 25th 2025 at 1:32 GMT by Forbes

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Idexx Laboratories vs. ResMed: Which Stock Might Rally Next?
An in‑depth look at two medical‑device leaders, their fundamentals, and the catalysts that could tilt the market.

When Wall Street starts comparing two seemingly unrelated companies, the first instinct is to dismiss the comparison as a gimmick. In this case, however, the Forbes “Great Speculations” article from November 24, 2025 does a thorough job of lining up the financials, growth prospects, and risk profiles of Idexx Laboratories and ResMed. Both firms operate in the broader healthcare arena, but they occupy distinct niches: Idexx is a global pet‑health diagnostics powerhouse, while ResMed develops sleep‑disorder devices and cloud‑based remote monitoring solutions for chronic conditions such as COPD and heart failure. Below is a concise, yet comprehensive, review of the article’s main points—everything you need to know if you’re weighing a position in either stock.

1. Company Snapshots

2. Financial Fundamentals

Revenue & Earnings Growth

• Idexx has posted a +15 % YoY revenue growth in the last 12 months, driven by the continued expansion of its point‑of‑care testing segment and the addition of two new international labs. EPS growth of ~$0.28 (20 % YoY) reflects tighter cost controls, especially on the consumables side.
• ResMed reports +12 % revenue growth and EPS growth of ~$0.19 (18 % YoY). Its “ResMed Health” cloud platform is pushing into the U.S. managed‑care space, contributing a modest 3 % to revenue.

Profitability & Margins

• Idexx’s gross margin sits at 55 %, slightly higher than ResMed’s 50 %. The difference stems from Idexx’s high‑margin consumables business versus ResMed’s heavy manufacturing footprint.
• Net margins: Idexx 22 %, ResMed 19 %. ResMed has been working to improve margins through automation and a new supplier strategy that should lift the bottom line in FY 2026.

Valuation Metrics

• Idexx: P/E 21x, PEG 1.2, EV/EBITDA 12x.
• ResMed: P/E 25x, PEG 1.4, EV/EBITDA 15x.

While Idexx trades at a modest discount, the article notes ResMed’s higher growth prospects justify the premium. Both companies appear to be trading in the “high‑growth” range relative to the broader S&P 500, yet Idexx’s valuation is more conservative.

3. Catalysts That Could Push Prices

Idexx Laboratories

1. Expansion of the Point‑of‑Care (POC) Unit
   - New product launches in 2025, such as the “iPOD” micro‑test system for infectious disease screening, are expected to hit the market by Q4.
   - A 10 % increase in POC penetration could add $200 million to annual revenue.

2. Regulatory Clearance in Emerging Markets
   - The FDA has approved Idexx’s new canine heart‑failure test, opening doors to U.S. specialty clinics.
   - Expanding into Asia–Pacific labs will also lift top‑line growth.

3. Acquisition Pipeline
   - A possible acquisition of a small U.S. veterinary diagnostic firm in 2026 would broaden Idexx’s lab footprint and provide additional recurring revenue streams.

ResMed

1. ResMed Health Platform Adoption
   - The company has secured agreements with several managed‑care plans to integrate its cloud‑based monitoring. An uptick in subscriptions could raise recurring revenue by 5 % annually.

2. New Generation of Portable Sleep Devices
   - Announced in Q2 2025, the next‑gen CPAP models are designed for improved battery life and AI‑driven therapy adjustments. First‑quarter sales are expected to boost device revenue by 12 % over the current year.

3. Regulatory Endorsements
   - The FDA’s “breakthrough device” designation for ResMed’s portable oxygen concentrator may accelerate reimbursement coverage, leading to a sales spike.

4. Risks and Headwinds

• Idexx
  - Competition from larger diagnostics firms (e.g., IDEXX’s competitors such as Quest Diagnostics or local veterinary labs).
  - Supply‑chain disruptions could impact consumable margins, especially for high‑tech test kits.

• ResMed
  - Regulatory changes in reimbursement for sleep‑apnea therapy.
  - Currency risk as a significant portion of revenue is generated outside the U.S.

Both companies are exposed to global economic slowdown impacts; a slowdown in discretionary spending could hit ResMed’s device sales more than Idexx’s veterinary lab services, which are seen as more defensive.

5. Analyst Consensus

• Idexx:
  - Consensus Buy with a target of $55 from a group of 7 analysts, up 10 % from the current price.
  - Emphasis on a “steady upside” scenario driven by margin expansion and international growth.

• ResMed:
  - Consensus Hold with a target of $190.
  - Some analysts see a “buy” case if the Health platform gains traction; others caution that the valuation is high for a company still dependent on device sales.

6. Bottom Line: Which Stock Might Rally?

The Forbes article leans toward Idexx Laboratories as the more likely candidate for a rally in the short to medium term. Its defensive nature (pet healthcare tends to be less cyclical), strong margin profile, and multiple growth catalysts (POC expansion and regulatory approvals) suggest a lower risk of significant downside while still offering upside potential.

ResMed, meanwhile, presents a higher‑growth but also higher‑valuation proposition. Its technology platform could deliver a substantial upside if managed‑care partnerships scale, but it remains sensitive to regulatory and reimbursement dynamics.

Bottom line: If you are risk‑averse and looking for a defensive play with modest upside, Idexx is the safer bet. If you’re willing to pay a premium for higher growth potential and are comfortable with the regulatory risks, ResMed could deliver a bigger reward—but it may also mean a longer wait and a sharper price swing.

7. Key Takeaways

1. Idexx’s defensive profile and diversified revenue mix (diagnostics, consumables, services) underpin its attractive valuation.
2. ResMed’s technology moat—the ResMed Health platform—offers the prospect of recurring revenue but comes with higher valuation risk.
3. Upcoming catalysts for both firms could drive significant price moves, but Idexx’s catalysts are considered more immediate and less contingent on regulatory change.
4. Analyst consensus generally favors Idexx’s upside, whereas ResMed’s consensus is more cautious, reflecting the company’s higher valuation.

For readers who want a deeper dive, the Forbes piece links to additional resources: an analysis of the global veterinary diagnostics market, a review of the U.S. sleep‑apnea reimbursement landscape, and a side‑by‑side comparison of Idexx’s and ResMed’s quarterly earnings presentations. All these articles reinforce the main argument that Idexx’s stock may experience a more pronounced rally in the coming 12‑18 months, while ResMed remains a viable, albeit higher‑risk, growth opportunity.