Back to top

Image: Bigstock

Organon (OGN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Read MoreHide Full Article

Organon (OGN - Free Report) ended the recent trading session at $9.70, demonstrating a -3.39% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The stock of pharmaceutical company has fallen by 1.08% in the past month, lagging the Medical sector's loss of 0.88% and the S&P 500's gain of 2.68%.

The investment community will be paying close attention to the earnings performance of Organon in its upcoming release. The company is slated to reveal its earnings on August 5, 2025. The company is predicted to post an EPS of $0.94, indicating a 16.07% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 3.35% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.83 per share and revenue of $6.24 billion. These totals would mark changes of -6.81% and -2.48%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Organon. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Organon is currently sporting a Zacks Rank of #2 (Buy).

Looking at valuation, Organon is presently trading at a Forward P/E ratio of 2.62. Its industry sports an average Forward P/E of 15.82, so one might conclude that Organon is trading at a discount comparatively.

Also, we should mention that OGN has a PEG ratio of 1. 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. Medical Services stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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