Neogen Corporation ( NEOG Quick Quote NEOG - Free Report) announced that it received approval from the AOAC Research Institute for its Reveal 3-D for Peanut test to check the presence of peanut in food. The test is intended to prevent peanut residues contaminating foods, which are not supposed to have it. Per Neogen, the Reveal 3-D food allergen test kits are user-friendly and provide an easy interpretation of strip tests, screening food samples for potential peanut contamination within a short time. With the recent approval, Neogen aims to strengthen foothold in the global food allergen testing market. Notably, food allergen is a segment of its food safety business.
Significance of the Approval Per Neogen, the validation received for any of its tests from a reputed third-party will boost customer confidence. The company believes that customers can use the Reveal 3-D test with confidence to verify whether their facilities have been properly sanitized or not before starting production. Recent Developments in Food Safety Business Neogen has been making significant developments in its food safety business for the past few months. The company collaborated with International Genetic Solutions (IGS) in September to focus on intensifying genomic influence in the IGS platform as well as enhance research and development necessary to continue improving Neogen’s Igenity Beef Profile. In August, Neogen received Performance Tested Method Certification for its Reveal Q+ for Deoxynivalenol (DON) test from the AOAC. The test is to be used for the rapid quantification of mold toxins in grains. The company also signed a development and licensing agreement with Corvium in August, which will provide Neogen’s customers with exclusive access to an enhanced version of Corvium’s CONTROL-PRO food risk intelligence platform. Further, Neogen’s NeoSeek received the AOAC validation for Shiga toxin-producing strains of E. coli (STEC) in August. NeoSeek is a testing platform that determines the genetic composition of bacteria in a food sample, detecting and identifying seven STECs that cause severe illness in humans. Industry Prospects Per a report by Mordor Intelligence, the global food allergen testing market is anticipated to grow, witnessing a CAGR of 8.32%, between 2019 and 2024. The key factor driving the market is increased awareness among consumers, regarding the safety of food products that they consume. As the increasing awareness among consumers is leading to growing market potential, the approval has come at just the right time. Price Performance The company’s shares have gained 17.5% in the past six months compared with the industry’s growth of 7.9%. Zacks Rank & Key Picks Currently, Neogen carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Haemonetics Corporation HAE, National Vision Holdings, Inc EYE and ResMed Inc RMD. Haemonetics currently carries a Zacks Rank #2 (Buy). It has a projected long-term earnings growth rate of 13.5%. National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ResMed’s long-term earnings growth rate is estimated at 12.9%. It currently flaunts a Zacks Rank #1. Looking for Stocks with Skyrocketing Upside? Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>