Title: Seizing the Moment: Two Spectacular S&P 500 Stocks Dropping 37% and 28% - Worthy Picks Before 2025
Investing in proven compounders that have delivered market-beating results, even after temporary hiccups, can significantly boost your portfolio. Two such companies in the animal healthcare sector, currently trading at what could be once-in-a-decade opportunities, are Idexx Laboratories (IDXX 3.28%) and Zoetis (ZTS 1.59%).
Idexx, a favorite of mine and my daughter's, is a leader in pet healthcare diagnostics. With an impressive global installed base of over 144,000 instruments and a year-over-year growth of 10%, Idexx offers a wide range of ailment detection solutions for pets, thereby ensuring a steady stream of revenue from recurring purchases of test cartridges, interpretation services, consulting, and software subscriptions.
Despite a temporary sales growth deceleration during the pandemic-induced pet adoption boom, Idexx's shares remain attractive, with a more reasonable valuation. At this lower price-to-FCF, the stock becomes an appealing once-in-a-decade investment opportunity. The company's strategic expansion into oncology cancer testing is also promising, as pet owners increasingly opt for early cancer detection instead of treatment after the fact.
Another stellar investment option is Zoetis, a market leader in pet and livestock medicines, vaccines, genetic tests, and precision healthcare products. Zoetis's dominance is built on 15 separate blockbuster products generating annual revenues over $100 million each. The company's competitive price-to-FCF ratio and dividend yield, which is almost back to its all-time high, makes Zoetis an attractive once-in-a-decade investment.
Zoetis's new Librela pain medicine for dogs and Solensia for cats have shown significant growth in their respective markets, particularly in the ever-growing osteoarthritis treatment sector. The increasing life expectancies of dogs and cats, up by 1.3 and 1.9 years since 2010, also contribute to the market expansion.
In conclusion, both Idexx and Zoetis are strong long-term investment prospects due to their dominant positions in the pet healthcare industry. Factors such as increasing pet ownership, innovations in veterinary care, and strategic acquisitions and partnerships support the growth of these companies. As the pet industry continues to thrive, Idexx and Zoetis are poised to outperform the market for years to come.
After identifying Idexx and Zoetis as proven compounders in the animal healthcare sector, one might consider allocating some finance into these companies for potential future gains. With the recent deceleration in Idexx's sales growth and Zoetis's competitive price-to-FCF ratio and dividend yield, these two companies present exciting once-in-a-decade investment opportunities in the field of finance and investing.
