Organon OGN shares soared 8.5% in the last trading session to close at $12.64. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 25.3% loss over the past four weeks.
Organon stock surged amid a broader market rebound following the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. The market is also upbeat about Organon’s recently acquired regulatory and commercial rights in the United States for TOFIDENCE from Biogen Inc. TOFIDENCE is the first approved tocilizumab biosimilar for intravenous infusion.
This pharmaceutical company is expected to post quarterly earnings of $0.92 per share in its upcoming report, which represents a year-over-year change of -24.6%. Revenues are expected to be $1.54 billion, down 5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Organon, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OGN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Organon is a member of the Zacks Medical Services industry. One other stock in the same industry, Medpace MEDP, finished the last trading session 9.1% higher at $302.56. MEDP has returned -14.9% over the past month.
Medpace's consensus EPS estimate for the upcoming report has changed -0.8% over the past month to $3.05. Compared to the company's year-ago EPS, this represents a change of -4.7%. Medpace currently boasts a Zacks Rank of #3 (Hold).
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Organon & Co. (OGN): Free Stock Analysis Report Medpace Holdings, Inc. (MEDP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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