(NEOG) Neogen - Ratings and Ratios

Neogen Corporation is a global leader in the development, manufacture, and marketing of products and services dedicated to food and animal safety. The companys two main segments, Food Safety and Animal Safety, provide a comprehensive range of diagnostic test kits, veterinary instruments, pharmaceuticals, and genomics testing services to various industries, including food processing, animal health, and veterinary care.

The Food Safety segment is a key player in the detection of foodborne pathogens, natural toxins, and other contaminants, offering products such as AccuPoint Advanced rapid sanitation tests and genomics-based diagnostic technology. Neogens products cater to a diverse customer base, including milling and grain, meat and poultry, prepared food products, and dietary supplements markets. The companys focus on food safety is critical in todays global food supply chain, where the risk of contamination is ever-present.

In the Animal Safety segment, Neogen provides a broad range of products, including veterinary instruments, pharmaceuticals, and genomics testing services, to veterinarians, retailers, livestock producers, and animal health product distributors. The companys products support companion animal veterinarians, livestock producers, and breeding associations, highlighting its commitment to animal health and welfare.

From a technical analysis perspective, NEOGs stock has been trending downward, with its 200-day SMA at $11.07, significantly higher than its current price of $5.64. The stocks ATR of 0.36, equivalent to 6.46% of its current price, indicates moderate volatility. The 52-week high and low of $17.71 and $4.39, respectively, suggest a significant price range over the past year.

Combining fundamental and technical data, we can forecast that NEOGs stock may experience a rebound if the company can demonstrate improved earnings growth and stability. With a forward P/E of 16.00, the stock appears reasonably valued. However, the current RoE of -16.72% raises concerns about the companys profitability. If Neogen can address its profitability issues and leverage its strong product portfolio, its stock price may recover, potentially targeting the $11.07 level, its 200-day SMA. A more optimistic scenario could see the stock price rising to its 52-week high of $17.71, although this would require significant improvement in the companys financial performance.