NEOG Forecast


Bullish Case: NEOG shows potential for growth with increasing test volumes and strong demand in the healthcare sector. Recent delivery of a USDA contract reflects enhanced credibility and a competitive edge.


Bearish Case: Ongoing legal challenges and high valuation ratios, alongside market volatility, threaten NEOG's price stability. Analysts' lukewarm consensus adds to uncertainty, suggesting caution.


Potential Outcomes:

1) Continued growth driven by contract wins (60%);

2) Legal setbacks impacting share price (30%);

3) Sustained volatility leading to price stagnation (10%).


Trading Oracle: Consider bullish diagonal spreads with NEOG call options expiring in 2025. Target 20.00 strikes, given strong implied volatility and the potential for upward movement based on recent contracts. This strategy leverages the volatility curve favorably.


July 24, 2024


Neogen Forecast

NEOG      Neogen











Correlated Assets

Assets that tend to move strongly with NEOG



VFC Forecast + Options Trading Strategies   VFC  VF (0.83)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.6)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.46)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.46)



Uncorrelated Assets

Assets with little price relationship to NEOG



XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.46)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.46)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.6)


VFC Forecast + Options Trading Strategies   VFC  VF (0.83)



Anticorrelated Assets

Assets that tend to move strongly against NEOG



VFC Forecast + Options Trading Strategies   VFC  VF (0.83)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.6)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.46)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.46)





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