Organon (OGN) closed at $11.30 in the latest trading session, marking a +1.07% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.64%.
The pharmaceutical company's shares have seen a decrease of 26.98% over the last month, not keeping up with the Medical sector's loss of 8.97% and the S&P 500's loss of 3.56%.
The upcoming earnings release of Organon will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.92, reflecting a 24.59% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 4.97% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $6.27 billion, indicating changes of -7.79% and -2.14%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Organon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. At present, Organon boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Organon is holding a Forward P/E ratio of 2.95. This valuation marks a discount compared to its industry's average Forward P/E of 14.97.
Meanwhile, OGN's PEG ratio is currently 1.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical Services was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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