In This Article:
The most recent trading session ended with Organon (OGN) standing at $14.96, reflecting a +0.27% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. Elsewhere, the Dow saw a downswing of 0.36%, while the tech-heavy Nasdaq depreciated by 0.16%.
Coming into today, shares of the pharmaceutical company had lost 2.86% in the past month. In that same time, the Medical sector lost 6.83%, while the S&P 500 lost 2.36%.
Market participants will be closely following the financial results of Organon in its upcoming release. It is anticipated that the company will report an EPS of $0.87, marking a 1.14% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, down 1.87% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Organon is currently a Zacks Rank #4 (Sell).
In terms of valuation, Organon is presently being traded at a Forward P/E ratio of 3.64. This valuation marks a discount compared to its industry's average Forward P/E of 16.29.
It's also important to note that OGN currently trades at a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.36.
The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 45% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.