Organon (OGN) ended the recent trading session at $9.00, demonstrating a -1.1% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a drop of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Shares of the pharmaceutical company have appreciated by 27.99% over the course of the past month, outperforming the Medical sector's loss of 0.74%, and the S&P 500's gain of 0.38%.
Market participants will be closely following the financial results 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%. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 3.84% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.78 per share and a revenue of $6.24 billion, representing changes of -8.03% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Organon is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Organon is presently trading at a Forward P/E ratio of 2.32. This indicates a discount in contrast to its industry's Forward P/E of 16.53.
We can also see that OGN currently has a PEG ratio of 1.8. 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. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.87.
The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 25% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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