In the latest close session, Organon (OGN) was up +1.23% at $9.05. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
Prior to today's trading, shares of the pharmaceutical company had lost 14.12% lagged the Medical sector's gain of 3.7% and the S&P 500's gain of 0.16%.
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%. At the same time, our most recent consensus estimate is projecting a revenue of $1.57 billion, reflecting a 0.74% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.84 per share and revenue of $6.3 billion, indicating changes of -6.57% and -1.55%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Organon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.96% higher. At present, Organon boasts a Zacks Rank of #3 (Hold).
Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 2.33. Its industry sports an average Forward P/E of 17.11, so one might conclude that Organon is trading at a discount comparatively.
It's also important to note that OGN currently trades at a PEG ratio of 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical Services was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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