22.5

From a recent Mad Money show:"In this new environment, I need stocks to have a good dividend, be near liquidation value or be recession resistant, and that one has none of those."

From a recent Mad Money show:"In this new environment, I need stocks to have a good dividend, be near liquidation value or be recession resistant, and that one has none of those."

Market Outperform - Price 35.69 on Jan. 6
by Avondale Partners

[This animal-health lab firm specializes] in bench-top analyzers, rapid assays, herd/food animal diagnostics, and drinking-water testing....Its strong market position and presence in these categories allows for greater adoption of new technology and products through established sales channels....Our 44 target is derived by using a 22 times P/E multiple and applying it to our 2010 EPS estimate of $2.21, and discounting it 10%...[which we believe] appropriate, given Idexx's leading market position and track record of growing earnings between 15% and 20% the last five years. We look for that growth to continue, even after the company passes the $1 billion mark in revenues this year. The two analyzers Catalyst Dx and SNAPshot comprise high-profile product launches....Market cap: $2 billion.

8 am

26.7

From a recent Mad Money show:

"This company is a classic good name that should be bought on dips. It's a long-term theme and I'd stick with it."

employer

While continued buybacks are always a good sign, they are not always an indicator to begin buying shares of a company. Idexx Laboratories (IDXX) has recently increased its buyback program, authoring the repurchase of an additional four million shares. The company had 2,852,000 shares remaining as of Dec. 31, 2007.

Idexx, which produces products and provides services for the veterinary industry, saw its profit rise 3% to $25.5 million, or 40 cents a share, in the fourth quarter. The company beat Wall Street expectations with revenue up 27% at $245 million. The segment that contributes the maximum to the company's total revenue, companion animal group, generated 26% revenue growth.

Idexx raised its revenue guidance for 2008 to between $1.05 billion and $1.07 billion, from between $1.03 billion and $1.05 billion. This forecast was also ahead of analysts' expectations. It projected earnings of between $1.83 a share and $1.87 a share for the year.

Idexx has product launches lined up for this year, which is good news. Two of these products have the potential of revolutionizing the way testing is done by veterinarians. The company's balance sheet is strong with little long-term debt. Also, the company has been generating strong free-cash flows.

According to a BusinessWeek article, the market for animal health care is expected to grow at a compound annual growth rate (CAGR) of more than 12% over the next couple of years. Along with Idexx benefiting from pet owners caring for their pets, VCA Antech (WOOF) is another company in the veterinary space that you should take a look at. VCA Antech operates over 435 veterinary hospitals and diagnostic labs.

Idexx generates a return on equity of 22.17%, and its shares have gained more than 30% in value over the last 52 weeks, climbing steadily from below $40 at the beginning of this year to now close to $56. However, the pet industry and the company are likely to continue to deliver good news. Any weakness in the shares should be seen as a good buying opportunity.

3 Stocks I Saw On TV
Dan Fitzpatrick examines three stocks viewed on Fast Money and Mad Money. Today's stocks include Idexx Laboratories, Riverbed Technologies and Public Svc. Enterprise Grp.

Click here to watch the video.

Health care