Organon (OGN) ended the recent trading session at $9.86, demonstrating a -1.2% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 0.52%.
Heading into today, shares of the pharmaceutical company had gained 4.61% over the past month, outpacing the Medical sector's gain of 3.5% and lagging the S&P 500's gain of 5.95%.
Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.93, showcasing a 16.96% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, down 3.35% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.83 per share and revenue of $6.24 billion, indicating changes of -6.81% and -2.48%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Organon possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Organon has a Forward P/E ratio of 2.61 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.76.
It's also important to note that OGN currently trades at a PEG ratio of 0.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. OGN's industry had an average PEG ratio of 1.37 as of yesterday's close.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
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Organon & Co. (OGN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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