Organon (OGN) Stock Gains: Key Metrics and Analyst Estimates to Watch for Investment Decisions

Organon (OGN) closed the most recent trading day at $9.95, moving +1.53% from the previous session. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.

The stock of the pharmaceutical company has risen by 12.77% in the past month, leading the Medical sector's gain of 2.14% and the S&P 500's gain of 3.92%. Market participants closely follow Organon's financial results, as evidenced by the recent surge in its stock price.

The company's upcoming EPS is projected at $0.93, signifying a 16.96% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, down 3.35% from the year-ago period. For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.83 per share and a revenue of $6.24 billion, signifying shifts of -6.81% and -2.48%, respectively, from the last year.

Investors should 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Organon presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Organon is currently trading at a Forward P/E ratio of 2.56, which represents a discount compared to its industry average Forward P/E of 15.78. Additionally, OGN currently boasts a PEG ratio of 0.97, which is lower than the average PEG ratio for the Medical Services industry, which stood at 1.35 at the close of the market yesterday.

The Medical Services industry is part of the Medical sector and currently carries a Zacks Industry Rank of 74, placing it within the top 31% of over 250 industries. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

In conclusion, investors should closely monitor Organon's stock performance and valuation metrics to make informed investment decisions. For more information and recommendations from Zacks Investment Research, download their free report on Organon & Co. (OGN) today!