Got $5,000? Here's the Ultimate Pick-and-Shovel Pet Stock (Spoiler: It's Not Chewy)

The Motley Fool

by newsfeedback@fool.com (Josh Kohn-Lindquist)

February 20, 2026

AI-Generated Deep Dive Summary

Investing in the pet industry doesn’t always mean choosing big names like Chewy. While Chewy’s Autoship feature is a standout for recurring revenue, Idexx Laboratories (NASDAQ: IDXX) emerges as a stealthy pick-and-shovel play in the animal health sector. This company provides critical tools and services to veterinarians, including point-of-care platforms, diagnostic tests, and Software-as-a-Service solutions. Over decades, Idexx has consistently delivered impressive returns, growing an initial $5,000 investment into a massive $1.6 million since 1994. Idexx’s steady growth is driven by its essential role in animal healthcare, ensuring reliable demand for its products and services. While Chewy’s recurring revenue model is undeniably attractive, Idexx’s diversified offerings and long-term track record make it a standout choice for investors seeking market-beating potential. The company’s annual returns of 20% since 1994 highlight its ability to grow alongside the pet industry, positioning it as a stable yet dynamic investment. For those looking beyond Chewy, Idexx Laboratories offers a compelling opportunity in the pet stock space. Its focus on veterinary care and innovative solutions positions it for sustained growth, even as it has matured into a larger company. With plans to add to its own position after a recent 18% share price dip from its 52-week high, Idexx continues to demonstrate resilience and potential in the evolving landscape of pet healthcare investments. This makes Idexx a standout choice for investors interested in both financial returns and supporting the backbone of animal health services. Its blend of essential products, consistent growth, and strategic positioning in the market underscores why it’s a favorite among informed investors. Whether you’re looking for steady growth or long-term potential, Idexx Laboratories offers a compelling case for investment in the pet industry.

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Originally published on The Motley Fool on 2/20/2026