Back to top

Image: Bigstock

Organon (OGN) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

In the latest close session, Organon (OGN - Free Report) was down 1.87% at $9.46. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the pharmaceutical company had lost 2.43% over the past month, lagging the Medical sector's loss of 1.59% and the S&P 500's gain of 5.37%.

The upcoming earnings release of Organon will be of great interest to investors. The company is forecasted to report an EPS of $0.94, showcasing a 16.07% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.55 billion, indicating a 3.35% decline compared to the corresponding quarter of the prior 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. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.55% higher. Organon is currently a Zacks Rank #2 (Buy).

With respect to valuation, Organon is currently being traded at a Forward P/E ratio of 2.52. For comparison, its industry has an average Forward P/E of 15.4, which means Organon is trading at a discount to the group.

It is also worth noting that OGN currently has a PEG ratio of 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. OGN's industry had an average PEG ratio of 1.52 as of yesterday's close.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


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


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

Published in