Neogen Corporation (NEOG) Slid Due to Below-Expected Revenue and Profitability

Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Initial volatility in April stemmed from increased trade policy uncertainty following President Trump’s tariffs on April 2, which affected import-dependent companies. Stability returned on April 9 after a 90-day pause on new duties. Market sentiment improved in May following the White House’s suspension of reciprocal tariff hikes on China on May 12. In June, trade talks—featuring faster rare-earth shipments and delayed tariffs—helped the S&P 500 reach a record high, ending Q2 with a 10.94% gain.  Class A shares of the fund outperformed the Russell 2500 Growth Index during the second quarter of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Alger Weatherbie Specialized Growth Fund highlighted stocks such as Neogen Corporation (NASDAQ:NEOG). Neogen Corporation (NASDAQ:NEOG) engages in the development of various products and services dedicated to food and animal safety. The one-month return of Neogen Corporation (NASDAQ:NEOG) was -2.44%, and its shares lost 65.98% of their value over the last 52 weeks. On September 23, 2025, Neogen Corporation (NASDAQ:NEOG) stock closed at $5.60 per share, with a market capitalization of $1.217 billion.

Alger Weatherbie Specialized Growth Fund stated the following regarding Neogen Corporation (NASDAQ:NEOG) in its second quarter 2025 investor letter:

“Neogen Corporation (NASDAQ:NEOG) develops, manufactures, and markets a diverse range of products dedicated to food and animal safety. Its Food Safety segment includes diagnostic test kits and related products used by food producers and processors to detect harmful or unintended substances in human food and animal feed. Its Animal Safety segment provides pharmaceuticals, vaccines, veterinary instruments, disinfectants, diagnostic products, rodenticides, and genomic testing services. Shares detracted from performance during the quarter after the company reported fiscal third-quarter revenue and profitability below expectations. Additionally, management modestly lowered its full-year 2025 guidance, citing a weaker macroeconomic environment impacting food production volumes and the strategic decision to exit non-core areas within its animal genomics business.”

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Neogen Corporation (NASDAQ:NEOG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 28 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the second quarter, up from 15 in the previous quarter. While we acknowledge the risk and potential of Neogen Corporation (NASDAQ:NEOG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Neogen Corporation (NASDAQ:NEOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Neogen Corporation (NASDAQ:NEOG) and shared the list of best healthcare stocks to buy under $30. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.