Organon (OGN) Stock Dips While Market Gains: Key Facts

Organon (OGN) closed at $9.96 in the latest trading session, marking a -1.87% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.

Heading into today, shares of the pharmaceutical company had gained 6.51% over the past month, outpacing the Medical sector's gain of 2.2% and the S&P 500's gain of 4.99%.

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Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.93, indicating a 16.96% decline compared to the equivalent quarter last 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 $3.83 per share and a revenue of $6.24 billion, indicating changes of -6.81% and -2.48%, respectively, from the former year.

Investors should also take note of any recent adjustments 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Organon boasts a Zacks Rank of #2 (Buy).

Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 2.65. This valuation marks a discount compared to its industry average Forward P/E of 16.22.

One should further note that OGN currently holds a PEG ratio of 1.01. 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. The average PEG ratio for the Medical Services industry stood at 1.46 at the close of the market yesterday.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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