Organon (OGN) closed the most recent trading day at $16.26, moving +1.82% from the previous trading session. This change outpaced the S&P 500's 1.46% loss on the day. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq decreased by 3.07%.
Shares of the pharmaceutical company witnessed a gain of 6.04% over the previous month, beating the performance of the Medical sector with its gain of 1.84% and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company's earnings report is set to go public on February 13, 2025. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 1.14% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.57 billion, down 1.87% from the prior-year quarter.
Any recent changes to analyst estimates for Organon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.97% downward. As of now, Organon holds a Zacks Rank of #4 (Sell).
In the context of valuation, Organon is at present trading with a Forward P/E ratio of 3.93. This expresses a discount compared to the average Forward P/E of 17.43 of its industry.
It's also important to note that OGN currently trades at a PEG ratio of 0.83. 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 1.56 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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