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

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In the latest trading session, Organon (OGN - Free Report) closed at $9.28, marking a -1.07% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.52%.

Prior to today's trading, shares of the pharmaceutical company had lost 13.55% lagged the Medical sector's gain of 2.87% and the S&P 500's gain of 0.71%.

Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. On that day, Organon is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 6.9%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.57 billion, indicating a 0.63% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.84 per share and revenue of $6.3 billion, which would represent changes of -6.57% and -1.59%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 1.17% higher. Organon is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Organon is presently trading at a Forward P/E ratio of 2.44. This signifies a discount in comparison to the average Forward P/E of 17.4 for its industry.

It is also worth noting that OGN currently has a PEG ratio of 0.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical Services industry had an average PEG ratio of 1.72 as trading concluded yesterday.

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 strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.


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