In the latest close session, Organon (OGN) was up +1.37% at $9.59. This move outpaced the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the pharmaceutical company witnessed a gain of 33.43% over the previous month, beating the performance of the Medical sector with its loss of 1.32%, and the S&P 500's loss of 0.42%.
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 $0.74 per share. This would mark a year-over-year decline of 17.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 3.84% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.78 per share and a revenue of $6.24 billion, demonstrating changes of -8.03% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Organon. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Organon currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Organon is currently trading at a Forward P/E ratio of 2.41. This valuation marks a discount compared to its industry average Forward P/E of 15.57.
We can also see that OGN currently has a PEG ratio of 1.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.89.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 22% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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