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Organon (OGN) Advances While Market Declines: Some Information for Investors

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Organon (OGN - Free Report) closed at $15.70 in the latest trading session, marking a +0.51% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 1.07%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 1.71%.

Heading into today, shares of the pharmaceutical company had gained 2.23% over the past month, outpacing the Medical sector's gain of 0.53% and the S&P 500's loss of 7.03% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. In that report, analysts expect Organon to post earnings of $0.92 per share. This would mark a year-over-year decline of 24.59%. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 4.97% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.79 per share and a revenue of $6.27 billion, signifying shifts of -7.79% and -2.14%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Organon. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.26% lower. Organon is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Organon is currently trading at a Forward P/E ratio of 4.12. This valuation marks a discount compared to its industry's average Forward P/E of 16.03.

Also, we should mention that OGN has a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical Services industry was having an average PEG ratio of 1.27.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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