Fidelity Investments, an investment management company, recently published its Q4 2025 “Fidelity Growth Strategies Fund” investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategy is a diversified equity strategy targeting domestic mid-cap growth stocks. The focus is on identifying quality companies that generate consistent above-average growth and can outperform over time. The Fund (Retail Class Shares) returned -3.44% for the quarter compared to the -3.70% return of the benchmark Russell Midcap® Growth Index. In the fourth quarter, the US stock market continued its rapid rally, driven by strong corporate fundamentals and strong spending on artificial intelligence. Mid-cap growth stocks underperformed, while large-cap stocks gained primarily thanks to a narrow group of companies connected to generative AI, and small-cap stocks benefited from interest rate sensitivity. As 2026 begins, the firm believes economic cycles in the US and around the world remain positive. The Strategy continues to focus on companies that have durable competitive advantages and growth potential. Review the Fund’s top five holdings to learn about its key picks for 2025.
In its Q4 2025 investor letter, Fidelity Growth Strategies Fund highlighted IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a U.S.-based healthcare company that manufactures products for the pet veterinary, livestock and poultry, dairy, and water testing industries. On February 4, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock closed at $642.94 per share. IDEXX Laboratories, Inc. (NASDAQ:IDXX) returned -9.75% in the past month and its shares have gained 39.60% in the past twelve months. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a market capitalization of $51,438 million.
Fidelity Growth Strategies Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q4 2025 investor letter:
“Not holding IDEXX Laboratories, Inc. (NASDAQ:IDXX) (+6%), a veterinary products maker and major benchmark component, also suffered. IDEXX is a solid and consistent business, and in its last quarterly update, published in November, it delivered solid results that substantially exceeded expectations. But we do not believe current growth is sustainable in the long term and prefer other investments in the mid-cap growth universe.”
IDEXX Laboratories, Inc. (NASDAQ:IDXX) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 55 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the third quarter, up from 48 in the previous quarter. While we recognize the potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.