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Organon (OGN) Dips More Than Broader Market: What You Should Know

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Organon (OGN - Free Report) closed at $9.38 in the latest trading session, marking a -1.78% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.63% for the day. On the other hand, the Dow registered a loss of 0.65%, and the technology-centric Nasdaq decreased by 0.47%.

The pharmaceutical company's shares have seen a decrease of 8.61% over the last month, not keeping up with the Medical sector's gain of 3.09% and the S&P 500's gain of 0.92%.

Investors will be eagerly watching for the performance of Organon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.93, showcasing a 6.9% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.57 billion, showing a 0.63% drop compared to the year-ago quarter.

OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $6.3 billion. These results would represent year-over-year changes of -6.57% and -1.59%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Organon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.17% increase. Organon currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Organon is holding a Forward P/E ratio of 2.49. For comparison, its industry has an average Forward P/E of 17.34, which means Organon is trading at a discount to the group.

We can also see that OGN currently has a PEG ratio of 0.83. 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. The Medical Services industry had an average PEG ratio of 1.73 as trading concluded yesterday.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 39% echelons of all 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.

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


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