Organon (OGN) ended the recent trading session at $10.19, demonstrating a +1.49% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
The pharmaceutical company's stock has climbed by 11.06% in the past month, exceeding the Medical sector's gain of 4.95% and the S&P 500's gain of 1.67%.
The investment community will be closely monitoring the performance of Organon in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.91, marking a 18.75% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 3.35% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.81 per share and a revenue of $6.24 billion, indicating changes of -7.3% and -2.48%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Organon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Organon is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 2.63. This denotes a discount relative to the industry average Forward P/E of 16.27.
It is also worth noting that OGN currently has a PEG ratio of 1. 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 1.39.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
