In the latest trading session, Organon (OGN) closed at $10.02, marking a +1.11% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
The stock of pharmaceutical company has fallen by 1.69% in the past month, lagging the Medical sector's gain of 0.24% and the S&P 500's gain of 4.37%.
The investment community will be paying close attention to the earnings performance of Organon in its upcoming release. In that report, analysts expect Organon to post earnings of $0.93 per share. This would mark a year-over-year decline of 16.96%. At the same time, our most recent consensus estimate is projecting a revenue of $1.55 billion, reflecting a 3.35% fall from the equivalent quarter last year.
OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $6.24 billion. These results would represent year-over-year changes of -6.08% and -2.48%, respectively.
Investors should also note any recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Organon currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Organon currently has a Forward P/E ratio of 2.57. This represents a discount compared to its industry average Forward P/E of 16.14.
One should further note that OGN currently holds a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical Services industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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