Organon (OGN) closed at $14.45 in the latest trading session, marking a -1.83% move from the prior day. This move was narrower than the S&P 500's daily loss of 4.84%. On the other hand, the Dow registered a loss of 3.98%, and the technology-centric Nasdaq decreased by 5.97%.
The pharmaceutical company's stock has climbed by 1.87% in the past month, exceeding the Medical sector's loss of 4.6% and the S&P 500's loss of 4.7%.
The investment community will be closely monitoring the performance of Organon in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.92, reflecting a 24.59% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.54 billion, indicating a 4.97% downward movement from the same quarter last 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.
It is also important to note the recent changes to analyst estimates for Organon. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.26% lower. Organon is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Organon currently has a Forward P/E ratio of 3.88. This signifies a discount in comparison to the average Forward P/E of 15.96 for its industry.
We can also see that OGN currently has a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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