Organon (OGN) Stock Sinks As Market Gains: Here's Why
In the latest market close, Organon (OGN) reached $20.63, with a -0.77% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.49%.
Prior to today's trading, shares of the pharmaceutical company had lost 0.91% over the past month. This has lagged the Medical sector's gain of 2.32% and the S&P 500's gain of 3.22% in that time.
The upcoming earnings release of Organon will be of great interest to investors. The company's upcoming EPS is projected at $1.18, signifying a 9.92% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.63 billion, up 1.16% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.42 per share and a revenue of $6.37 billion, representing changes of +6.76% and +1.67%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Organon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Organon currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Organon is currently being traded at a Forward P/E ratio of 4.7. This indicates a discount in contrast to its industry's Forward P/E of 18.76.
It is also worth noting that OGN currently has a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.47.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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 Report
