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Organon (OGN) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, Organon (OGN - Free Report) closed at $8.61, marking a +2.14% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.53% for the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1%.

The pharmaceutical company's stock has climbed by 20.95% in the past month, exceeding the Medical sector's gain of 0.09% and the S&P 500's gain of 2.06%.

Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.74, showcasing a 17.78% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, down 3.84% from the year-ago period.

OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $6.24 billion. These results would represent year-over-year changes of -8.03% and 0%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Organon. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Organon currently has a Zacks Rank of #3 (Hold).

Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 2.15. This expresses a discount compared to the average Forward P/E of 15.3 of its industry.

Meanwhile, OGN's PEG ratio is currently 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical Services stocks are, on average, holding a PEG ratio of 1.91 based on yesterday's closing prices.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 21% 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.

To follow OGN in the coming trading sessions, be sure to utilize Zacks.com.


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