In the latest market close, Organon (OGN) reached $14.56, with a -1.02% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.53%.
Shares of the pharmaceutical company witnessed a loss of 4.97% over the previous month, trailing the performance of the Medical sector with its loss of 3.24% and the S&P 500's loss of 4.03%.
Investors will be eagerly watching for the performance of Organon in its upcoming earnings disclosure. In that report, analysts expect Organon to post earnings of $0.92 per share. This would mark a year-over-year decline of 24.59%. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 4.97% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and a revenue of $6.27 billion, representing changes of -7.79% and -2.14%, respectively, from the prior year.
Any recent changes to analyst estimates for Organon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.26% decrease. Organon is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Organon is currently exchanging hands at a Forward P/E ratio of 3.88. This represents a discount compared to its industry's average Forward P/E of 16.08.
Meanwhile, OGN's PEG ratio is currently 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical Services was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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