NEOGEN CORP

62.23 -1.12 (-1.8%) Buy

Looking to invest in NEOG? Look for alternatives because it performed worse than the broader market

13 min read

NEOG was among the worst performers today. On a longer term basis, investors in NEOGEN CORP made -0.06% per day. Friday's performance of -1.8% was a underperformance compared to it's daily average.

[Themes containing NEOG]

NEOG showed a strong bearish trend over the last 3 months. During this period NEOG fell by -33.27% and saw a maximum drawdown of -35.35%. There were 2 short signals during this period that returned a cumulative of +23.37% to investors.

Trend

NEOG has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 24 Mar, 2016 to 14 Sep, 2018. Over the last 2 years 11 months and 10 days, NEOG outperformed the SP500 index on 53% days.

NEOG returned losses on 61% days in the last three months. During this time, it delivered on average -0.6% per day. It delivered it's worst daily return of -15.78%, during this period, on Tuesday, 25 Sep, 2018. The longest stort-term trend during this period was 8 losing days, which started on 18 Sep, 2018 and ended on 27 Sep, 2018. This bearish trend lost -26.47% of investor capital.

During the last year NEOG had 7 profitable months and 5 loss making months. NEOG returned profits in fewer months than SP500 index. NEOG was also a more risky investment than SP500 index as it's worst month in the last year, Sep 2018, returned -23.45% compared to -7.28% returned by SP500 index in Oct 2018. NEOG and SP500 index, both had periods of 6 consecutive profitable months.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

NEOG is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant fall in NEOG's volatility from 17 Sep, 2018 to 12 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that NEOG has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than NEOG. Therefore, SP500 must receive a lower allocation than NEOG in your portfolio. SP500 index usually has shorter drawdown period than NEOG.

Based on your interest in NEOG you may find it interesting to know that EHC is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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