Shares of life sciences company Neogen (NASDAQ:NEOG)
jumped 5.2% in the afternoon session after an investment group led by Clarkston Capital Partners disclosed a significant 6.44% stake in the company. The disclosure, made in a joint Schedule 13G filing, indicates the shares were acquired in the ordinary course of business and not for the purpose of changing or influencing control of Neogen. This type of filing is often seen as a vote of confidence from institutional investors. The move comes on the heels of other positive developments, including a new partnership with Biomatter to create enzyme-based products using a proprietary platform. Additionally, Neogen recently completed the sale of its cleaners and disinfectants business for $130 million, a strategic divestiture that could allow the company to focus on its core operations. This news is complemented by a 'Buy' consensus rating from Wall Street analysts.
Life sciences company Neogen (NASDAQ:NEOG) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 4.8% year on year to $225.5 million. The company’s full-year revenue guidance of $830 million at the midpoint came in 3.1% above analysts’ estimates. Its non-GAAP profit of $0.05 per share was 44.4% below analysts’ consensus estimates.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - diversified industry, including Neogen (NASDAQ:NEOG) and its peers.
Shares of life sciences company Neogen (NASDAQ:NEOG)
fell 10.2% in the morning session after the company reported disappointing fourth-quarter financial results, which showed a decline in revenue and adjusted earnings that fell short of analyst expectations. The food and animal safety company announced that revenue for the quarter ended May 31, 2025, decreased by 4.8% to $225.5 million compared to the prior year. Neogen also posted a significant net loss of $612.2 million, which it attributed mainly to a non-cash goodwill impairment charge related to its acquisition of the former 3M Food Safety Division. On an adjusted basis, net income was $0.05 per share, a drop from $0.10 in the same period last year and below Wall Street's consensus estimates. Management cited softer market conditions and the effects of inflation as key factors behind the weak performance.
Life sciences company Neogen (NASDAQ:NEOG) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 4.8% year on year to $225.5 million. The company’s full-year revenue guidance of $830 million at the midpoint came in 3.4% above analysts’ estimates. Its non-GAAP profit of $0.05 per share was 44.4% below analysts’ consensus estimates.
Shares of life sciences company Neogen (NASDAQ:NEOG)
jumped 3.4% in the morning session after the company announced the appointment of Mike Nassif as its new Chief Executive Officer and President.
A number of stocks fell in the afternoon session after the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Shares of life sciences company Neogen (NASDAQ:NEOG)
fell 24% in the afternoon session after the company provided updated Q4 fiscal 2025 outlook that pointed to temporary headwinds impacting gross margin, though sales are expected to remain in line with the previous estimates. The company also anticipated a nearly $5 million impact from tariffs and announced strategic divestitures, which are expected to weigh heavily on growth and profits.
Curious to know what's happening on the US markets in the middle of the day on Wednesday? Join us as we explore the top gainers and losers in today's session.
A number of stocks jumped in the afternoon session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the medical devices & supplies - diversified stocks, including Neogen (NASDAQ:NEOG) and its peers.
Insiders are buying stock in 2025, and the purchases are not limited to a single market cap, sector, or industry. Analysts see deep value in these stocks.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
