What Happened?
A number of stocks fell in the afternoon session after worries over worsening trade relations with China were triggered by critical comments from President Donald Trump.
The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Healthcare Technology for Patients company Tandem Diabetes (NASDAQ: TNDM) fell 6.8%. Is now the time to buy Tandem Diabetes? Access our full analysis report here, it’s free for active Edge members.
- Outpatient & Specialty Care company agilon health (NYSE: AGL) fell 5.3%. Is now the time to buy agilon health? Access our full analysis report here, it’s free for active Edge members.
- Healthcare Technology for Patients company GoodRx (NASDAQ: GDRX) fell 6.1%. Is now the time to buy GoodRx? Access our full analysis report here, it’s free for active Edge members.
- Medical Devices & Supplies - Diversified company Neogen (NASDAQ: NEOG) fell 14%. Is now the time to buy Neogen? Access our full analysis report here, it’s free for active Edge members.
- Drug Development Inputs & Services company Fortrea (NASDAQ: FTRE) fell 5.9%. Is now the time to buy Fortrea? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Neogen (NEOG)
Neogen’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. But moves this big are rare even for Neogen and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 21.4% on the news that the company reported third-quarter 2025 financial results that surpassed revenue expectations while its earnings were in line with estimates.
The life sciences company posted revenue of $209.2 million, beating Wall Street's estimates by 2.6%, although this represented a 3.6% decline year on year. Adjusted earnings per share came in at $0.04, which was in line with analyst consensus. Investors were likely encouraged by the company's full-year outlook. Neogen reconfirmed its full-year revenue guidance with a midpoint of $830 million, which was slightly above analyst expectations. Additionally, its full-year EBITDA guidance of $170 million at the midpoint also came in ahead of consensus estimates of $163.3 million, suggesting better-than-expected profitability for the year ahead.
Neogen is down 49% since the beginning of the year, and at $6.09 per share, it is trading 62.9% below its 52-week high of $16.40 from November 2024. Investors who bought $1,000 worth of Neogen’s shares 5 years ago would now be looking at an investment worth $168.23.
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