Organon (OGN – Free Report) closed at $14.62 in the latest trading session, marking a -1.81% move from the prior day. The stock’s performance was behind the S&P 500’s daily loss of 0.95%. Meanwhile, the Dow lost 0.99%, and the Nasdaq, a tech-heavy index, lost 1.36%.
The pharmaceutical company’s stock has dropped by 6.94% in the past month, falling short of the Medical sector’s gain of 5.16% and the S&P 500’s gain of 1.86%.
The investment community will be paying close attention to the earnings performance of Organon in its upcoming release. The company is slated to reveal its earnings on February 13, 2025. The company’s earnings per share (EPS) are projected to be $0.86, reflecting a 2.27% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.57 billion, down 2.03% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Organon. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there’s been a 2.27% fall in the Zacks Consensus EPS estimate. Organon is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Organon is currently exchanging hands at a Forward P/E ratio of 3.7. This valuation marks a discount compared to its industry’s average Forward P/E of 17.62.
We can also see that OGN currently has a PEG ratio of 0.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Medical Services industry stood at 1.6 at the close of the market yesterday.
The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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