Organon (OGN) closed at $12.20 in the latest trading session, marking a +0.66% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.74%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq added 1.26%.
The pharmaceutical company's shares have seen a decrease of 16.76% over the last month, not keeping up with the Medical sector's loss of 7.7% and the S&P 500's loss of 4.77%.
Investors will be eagerly watching for the performance of Organon in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 1, 2025. The company's upcoming EPS is projected at $0.92, signifying a 24.59% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.54 billion, indicating a 4.93% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.79 per share and a revenue of $6.25 billion, signifying shifts of -7.79% and -2.41%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Organon. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Organon is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Organon is currently exchanging hands at a Forward P/E ratio of 3.2. This valuation marks a discount compared to its industry's average Forward P/E of 16.23.
We can additionally observe that OGN currently boasts a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Medical Services industry stood at 1.31 at the close of the market yesterday.
The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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