Neogen (NEOG) Highlighted As Strong And Under The Radar Stock Of The Day
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Neogen as such a stock due to the following factors:
- NEOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
- NEOG is making at least a new 3-day high.
- NEOG has a PE ratio of 58.8.
- NEOG is mentioned 0.61 times per day on StockTwits.
- NEOG has not yet been mentioned on StockTwits today.
- NEOG is currently in the upper 20% of its 1-year range.
- NEOG is in the upper 35% of its 20-day range.
- NEOG is in the upper 45% of its 5-day range.
- NEOG is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on NEOG:
Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products and services for food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. NEOG has a PE ratio of 58.8. Currently there are 2 analysts that rate Neogen a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Neogen has been 163,100 shares per day over the past 30 days. Neogen has a market cap of $1.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.17 and a short float of 5% with 8.68 days to cover. Shares are down 0% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Neogen as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NEOG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 6.07, which clearly demonstrates the ability to cover short-term cash needs.
- NEOGEN CORP has improved earnings per share by 23.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEOGEN CORP increased its bottom line by earning $0.76 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus $0.76).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry average. The net income increased by 25.8% when compared to the same quarter one year prior, rising from $6.21 million to $7.81 million.
- Net operating cash flow has significantly increased by 147.88% to $12.94 million when compared to the same quarter last year. In addition, NEOGEN CORP has also vastly surpassed the industry average cash flow growth rate of -7.21%.
- You can view the full Neogen Ratings Report.
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