Neogen Corporation NEOG recently announced the launch of its new Neogen Molecular Detection Assay 2 – Quantitative Salmonella (MDA2QSAL96). This assay helps overcome certain limitations of existing solutions with improved sensitivity and accuracy and an easy-to-use workflow.

Molecular Detection Assay 2 - Quantitative Salmonella is the latest addition to the company’s Molecular Detection System pathogen testing platform.

NEOG’s Likely Stock Trend Following the News

Following the announcement, shares of NEOG moved 2.1% north to $11.60 yesterday.  

Neogen consistently demonstrates core growth within the Food Safely segment by bringing advanced technologies to address the challenging needs in the poultry industry. Earlier in fiscal 2024, the company launched its new Molecular Detection Assay 2 – Salmonella Enteritidis/Salmonella Typhimurium (MDA2SEST) and CelluSmart technology (from Megazyme by Neogen). Henceforth, we expect market sentiment to remain positive surrounding the announcement of the latest development.

NEOG currently has a market capitalization of $2.52 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $935.1 million, which suggests 1.2% growth from the fiscal 2024 reported number.

About NEOG’S Molecular Detection Assay 2 – Quantitative Salmonella 

The Neogen MDA2QSAL96 kit integrates qualitative pathogen testing solutions and Quantitative Rapid Enrichment Dehydrated media designed to enable controlled growth rates for quantitation, allowing poultry producers to verify the effectiveness of their interventions. This quantitative method delivers excellent consistency and sensitivity on poultry rinses and ground poultry meat with an easy-to-use workflow that saves time and resources.

About NEOG’s Molecular Detection System

Other than the MDA2QSAL96 kit, Neogen’s Molecular Detection System platform contains several next-generation assays, including Salmonella, Salmonella Enteriditis and Typhimurium, E. coli O157 (including H7), Listeria spp., Listeria monocytogenes, Campylobacter, STEC gene screen (stx and eae), STEC gene screen (stx) and Cronobacter.

The award-winning Neogen Molecular Detection System platform is used by food processors, universities, governments and contract testing laboratories in more than 40 countries. It is powered by a combination of advanced technologies — isothermal DNA amplification and bioluminescence detection — to provide a pathogen testing solution that is fast, accurate, easy to use and affordable.

The U.S. Department of Agriculture Food Safety and Inspection Service (USDA FSIS) named the Neogen Molecular Detection System as the primary method for detecting Salmonella, Listeria monocytogenes and Listeria spp.

Image Source: Zacks Investment Research

Industry Prospects Favor Neogen

Per a report from Modor Intelligence, the microbiology testing market was worth $5.65 billion in 2024 and is expected to reach $8.78 billion by 2029 at a compound annual growth rate of 9.2% during the period. Technological advancements in microbiology testing and the increasing incidence of fungal infections are propelling the market's growth.

Other Recent Developments by Neogen

In December 2024, Neogen introduced the Petrifilm Bacillus cereus Count Plate. This solution offers food safety professionals a simple, reliable, and efficient testing method for Bacillus cereus. Petrifilm Bacillus cereus Count Plate is the latest addition to the company’s Petrifilm product line.

Price Performance 

In the past year, NEOG’s shares have lost 31.3% against the industry’s 9.7% growth.

Zacks Rank and Key Picks

Neogen currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader medical space are Veracyte VCYT, ResMed RMD and Omnicell OMCL.

Veracyte, carrying a Zacks Rank of #1 (Strong Buy) at present, has an estimated earnings growth rate of 65.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. Veracyte’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.

ResMed, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 21.1% for 2025. RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year. 

Omnicell, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 72.7% for fourth-quarter 2024. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 121.74%. OMCL’s shares have risen 26.4% against the industry’s 15.7% decline in the past year. 

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

Omnicell, Inc. (OMCL) : Free Stock Analysis Report

ResMed Inc. (RMD) : Free Stock Analysis Report

Neogen Corporation (NEOG) : Free Stock Analysis Report

Veracyte, Inc. (VCYT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research