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Organon (OGN) Stock Dips While Market Gains: Key Facts

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Organon (OGN - Free Report) closed at $10.45 in the latest trading session, marking a -3.69% move from the prior day. This move lagged the S&P 500's daily gain of 0.49%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.72%.

The pharmaceutical company's stock has climbed by 16.92% in the past month, exceeding the Medical sector's gain of 1.93% and the S&P 500's gain of 2.99%.

The investment community will be paying close attention to the earnings performance of Organon in its upcoming release. The company is expected to report EPS of $0.93, up 6.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.57 billion, reflecting a 0.63% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $6.3 billion. These totals would mark changes of -7.3% and -1.59%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% downward. Organon is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Organon has a Forward P/E ratio of 2.85 right now. This denotes a discount relative to the industry average Forward P/E of 16.81.

Investors should also note that OGN has a PEG ratio of 0.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 41% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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