Organon (OGN) closed the most recent trading day at $14.51, moving -0.34% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.97%. Meanwhile, the Dow experienced a drop of 1.69%, and the technology-dominated Nasdaq saw a decrease of 2.7%.
Prior to today's trading, shares of the pharmaceutical company had lost 3.19% over the past month. This has lagged the Medical sector's loss of 2.45% and the S&P 500's loss of 2.79% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. On that day, Organon is projected to report earnings of $0.92 per share, which would represent a year-over-year decline of 24.59%. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, down 4.97% from the year-ago period.
OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $6.27 billion. These results would represent year-over-year changes of -7.79% and -2.14%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Organon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.26% downward. Organon presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Organon has a Forward P/E ratio of 3.84 right now. For comparison, its industry has an average Forward P/E of 16.31, which means Organon is trading at a discount to the group.
We can also see that OGN currently has a PEG ratio of 1.61. 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 industry had an average PEG ratio of 1.46 as trading concluded yesterday.
The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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