Headquartered in Lansing, MI, Neogen Corporation NEOG recently announced the availability of next generation sequencing services for the food industry. Per management, NeoSeek genomic services will help food companies detect bacteria in a sample through a single genomic test. Neogen carries a Zacks Rank #3 (Hold).
NeoSeek utilizes the highly exclusive 16s metagenomics application, without introducing biases from culture-media. The platform compares multiple sample types such as raw materials, environmental swabs and in-process materials to present a unique understanding of all bacteria types present in a food facility and their sources.
The best thing about NeoSeek is its bioinformatics service, which has been provided by Metagenome Analytics, a leading company in the food safety bioinformatics space. With the latest development, Neogen is expected to structure an industry-leading genomic database for the food industry.
Shares of Neogen inched 0.2% up to close at $68.38, following the news release.
In fact, the stock has had an impressive run on the bourse over the last one month. Neogen has gained almost 10.6%, significantly higher than the Zacks classified Medical - Products sub-industry's gain of just 6.2%. In fact, the stock's price level was higher than the S&P 500's addition of 1.6% over the same time frame.
Meanwhile, the company's recent earnings estimates have been stable. The current quarter earnings estimates were pegged at 32 cents per share over the last two months.
The global genetically modified food safety testing market is projected to reach a value of $1.99 billion by 2020 at a CAGR of 7.9%. Considering the bountiful opportunities in the niche space, we expect Neogen to fortify its footprint.
We are also upbeat about Neogen's highly diversified Food Safety Division that markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns.
Some better-ranked stocks in the broader medical sector include Inogen Inc. INGN , Luminex Corporation LMNX and IDEXX Laboratories, Inc. IDXX . Notably, Inogen and Luminex Laboratories sport a Zacks Rank #1 (Strong Buy), while IDEXX carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 104.9%.
Luminex has a long-term expected earnings growth rate of 16.3%. The stock posted a positive earnings surprise of 237.5% in the last reported quarter.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.37%. Additionally, the stock represents an impressive one-year return of 83%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Luminex Corporation (LMNX): Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis Report Neogen Corporation (NEOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research