Back to top

Image: Bigstock

Organon (OGN) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Organon (OGN - Free Report) closed at $16 in the latest trading session, marking a +1.78% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

The pharmaceutical company's shares have seen an increase of 3.97% over the last month, surpassing the Medical sector's loss of 5.77% and the S&P 500's loss of 2.8%.

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 $0.87, showcasing a 1.14% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.57 billion, down 1.87% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, there's been no change in the Zacks Consensus EPS estimate. Organon presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Organon is at present trading with a Forward P/E ratio of 3.84. This expresses a discount compared to the average Forward P/E of 17.15 of its industry.

One should further note that OGN currently holds a PEG ratio of 0.81. 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. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.39.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 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.

To follow OGN in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Organon & Co. (OGN) - free report >>

Published in