In the latest trading session, Organon (OGN) closed at $10.35, marking a +1.37% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.48%.
Shares of the pharmaceutical company have appreciated by 8.39% over the course of the past month, outperforming the Medical sector's loss of 0.57%, and the S&P 500's gain of 2.87%.
The upcoming earnings release of Organon will be of great interest to investors. On that day, Organon is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 6.9%. In the meantime, our current consensus estimate forecasts the revenue to be $1.57 billion, indicating a 0.63% decline compared to the corresponding quarter of the prior year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Organon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% lower. Organon presently features a Zacks Rank of #3 (Hold).
Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 2.68. This expresses a discount compared to the average Forward P/E of 17.22 of its industry.
It's also important to note that OGN currently trades at a PEG ratio of 0.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OGN's industry had an average PEG ratio of 1.68 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 151, placing it within the bottom 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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