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Organon (OGN) Stock Sinks As Market Gains: Here's Why
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In the latest close session, Organon (OGN - Free Report) was down 4.87% at $6.05. This change lagged the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the pharmaceutical company had lost 3.05% over the past month, outpacing the Medical sector's loss of 4.11% and the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Organon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 17.65% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.46 billion, indicating a 3.27% decline compared to the corresponding quarter of the prior year.
OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $6.16 billion. These results would represent year-over-year changes of -7.92% and -0.86%, respectively.
Any recent changes to analyst estimates for Organon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Organon possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Organon is presently being traded at a Forward P/E ratio of 1.89. This valuation marks a discount compared to its industry average Forward P/E of 15.58.
We can also see that OGN currently has a PEG ratio of 0.56. 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. OGN's industry had an average PEG ratio of 1.37 as of yesterday's close.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Organon (OGN) Stock Sinks As Market Gains: Here's Why
In the latest close session, Organon (OGN - Free Report) was down 4.87% at $6.05. This change lagged the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
Heading into today, shares of the pharmaceutical company had lost 3.05% over the past month, outpacing the Medical sector's loss of 4.11% and the S&P 500's loss of 3.31%.
Investors will be eagerly watching for the performance of Organon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 17.65% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.46 billion, indicating a 3.27% decline compared to the corresponding quarter of the prior year.
OGN's full-year Zacks Consensus Estimates are calling for earnings of $3.37 per share and revenue of $6.16 billion. These results would represent year-over-year changes of -7.92% and -0.86%, respectively.
Any recent changes to analyst estimates for Organon should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Organon possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Organon is presently being traded at a Forward P/E ratio of 1.89. This valuation marks a discount compared to its industry average Forward P/E of 15.58.
We can also see that OGN currently has a PEG ratio of 0.56. 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. OGN's industry had an average PEG ratio of 1.37 as of yesterday's close.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.