Why Neogen Corporation (NEOG) Went Down On Thursday?

We recently published a list of 10 Stocks Fall Behind Amid Market Optimism. In this article, we are going to take a look at where Neogen Corporation (NASDAQ:NEOG) stands against other stocks that fall behind amid market optimism.

Wall Street’s main indices rebounded from hefty losses on Wednesday after President Donald Trump announced that the US will pause the imposition of higher tariffs on 75 countries for 90 days.

In a post on Truth Social, Trump said that more than 75 countries have called to negotiate and have not retaliated in any way.

“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he noted.

Following the announcement, the Dow Jones jumped by 7.87 percent, the S&P 500 surged by 9.52 percent, and the tech-heavy Nasdaq soared by 12.16 percent.

Despite the overall market optimism, 10 companies, predominantly in the biopharmaceutical sector, registered losses amid the lack of fresh developments to spark buying appetite.

In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with over $1 million in trading volume.

Neogen Corporation (NASDAQ:NEOG)

Neogen dropped for a second day on Wednesday, losing 28.69 percent to end at $5.02, following the company’s recent earnings performance and leadership management.

On Wednesday, NEOG reported a surprising rise in earnings per share but missed analysts’ revenue estimates.

In an investor call, NEOG posted EPS of $0.10, bucking a -$0.01 as forecast by analysts. However, revenues stood at $221 million, falling short of the $232.36 million consensus.

On the same day, NEOG announced the resignation of John Adent from his position as CEO, ending his eight-year career in the company.

The company added that its Board of Directors formed a special committee to direct the search for the company’s next CEO. It said the special committee has engaged a leading global executive search firm to support the research.

“We are grateful for John’s leadership over the past eight years as Neogen has transformed its business to focus on long-term, secular tailwinds in the food safety market,” said Jim Borel, a member of the board. “We appreciate John’s continued support to ensure a smooth transition while we complete a comprehensive search process.”

Overall, NEOG ranks 2nd on our list of stocks that fall behind amid market optimism. While we acknowledge the potential of NEOG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NEOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.