In the latest close session, Organon (OGN) was down 1.06% at $10.26. This change lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq gained 0.03%.
The stock of pharmaceutical company has risen by 14.59% in the past month, leading the Medical sector's gain of 7.07% and the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.93, showcasing a 6.9% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, down 0.63% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.81 per share and a revenue of $6.3 billion, representing changes of -7.3% and -1.59%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Organon. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. Right now, Organon possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Organon is currently exchanging hands at a Forward P/E ratio of 2.72. This denotes a discount relative to the industry average Forward P/E of 16.58.
Also, we should mention that OGN has a PEG ratio of 0.9. 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 currently had an average PEG ratio of 1.58 as of yesterday's close.
The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 41% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
