10 Best Pet Stocks To Invest In According to Analysts

3. Neogen Corporation (NASDAQ:NEOG)

Average Price Target Upside Potential According to Analysts: 30.75%

Number of Hedge Fund Holders: 16

Neogen Corporation (NASDAQ:NEOG) is a food and animal safety company that ranks among the top 3 on our list of the best pet stocks to invest in according to analysts. The company has developed comprehensive solutions for the food safety, livestock, and pet health and wellness market. Neogen Corporation (NASDAQ:NEOG) has a presence in more than 140 countries around the world.

In the Animal Safety segment, the company is currently facing challenging market conditions. The management believes the end market is near cyclical lows. Despite this, Neogen Corporation (NASDAQ:NEOG) continues to see supportive sales from its products to end users. The decline in core revenue is mainly due to fluctuations in inventory levels among distribution partners and timing issues. Operationally, Neogen’s (NASDAQ:NEOG) profit margins were impacted by lower sales volumes and increased shipping costs. To address these challenges, the company is implementing various initiatives aimed at improving margins and enhancing overall performance.

In its first quarter of fiscal 2025 results, the company faced challenges in its Animal Safety segment, where revenues dropped by 8.1% year-over-year to $57.6 million.

Neogen Corporation’s (NASDAQ:NEOG) food and animal safety solutions are increasingly vital in today’s market, especially given recent high-profile contamination incidents. The company provides essential testing services that help prevent costly recalls and protect consumer health. With a strong portfolio of validated products and a reputation as a trusted partner, Neogen Corporation (NASDAQ:NEOG) is well-positioned to support businesses in maintaining food safety standards.

In September, the company crossed the 2-year anniversary of the 3M Food Safety transaction, which has strengthened its product offerings and global reach. In the Q1 2025 earnings call, Neogen Corporation’s (NASDAQ:NEOG) management shared that they have resolved the system issues in their distribution center that affected the company’s order fulfillment. Now that shipping challenges are no longer a problem, the company’s main focus is on growing its market share.

While Neogen Corporation (NASDAQ:NEOG) has experienced some setbacks, its strategic initiatives combined with its global presence and innovative solutions in the food and animal safety market, suggest potential for future growth.

Analysts have a positive outlook on NEOG. Their 12-month median price target indicates a potential increase of 30% from the stock’s current price.

According to Insider Monkey’s database of over 900 hedge funds, 16 hedge funds held stakes in Neogen Corporation (NASDAQ:NEOG) in Q2 2024.