In the latest trading session, Organon (OGN) closed at $10.12, marking a -2.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Coming into today, shares of the pharmaceutical company had gained 13.15% in the past month. In that same time, the Medical sector lost 0.7%, while the S&P 500 gained 2.74%.
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 year-over-year growth of 6.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, down 0.63% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $6.3 billion. These totals would mark changes of -7.3% and -1.59%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Organon. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% lower. Organon is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Organon currently has a Forward P/E ratio of 2.73. For comparison, its industry has an average Forward P/E of 16.94, which means Organon is trading at a discount to the group.
We can additionally observe that OGN currently boasts a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical Services industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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