Neogen (NEOG) and its subsidiaries develop, manufacture, and sell a variety of food and animal safety products. Its Food Safety division (47% of fiscal 2017 revenues) offers diagnostic test kits and related products that are sold to food manufacturers and processors to detect harmful substances in their products. Neogen’s Animal Safety segment (53%) manufactures a diverse line of products, including veterinary instruments, pharmaceuticals, vaccines, and disinfectants.

We are initiating coverage of Neogen this week in The Value Line Investment Survey. The Michigan-based corporation develops, manufactures, and markets a variety of products dedicated to food and animal safety. The company has more than 1,400 employees and a market capitalization that exceeds $3.0 billion.

The equity has richly rewarded shareholders of late. Over the past year, the stock price has advanced about 55%. For comparison, the S&P 500 Index is up 23% over the same time frame. The out performance, in our view, can be attributed to recent quarterly financial results, which have consistently met or exceeded Wall Street’s expectations. The bull market, as well as Neogen’s good outlook has also helped.