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Organon (OGN) Stock Falls Amid Market Uptick: What Investors Need to Know

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The latest trading session saw Organon (OGN - Free Report) ending at $18.10, denoting a -0.11% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.45%.

Prior to today's trading, shares of the pharmaceutical company had lost 10.21% over the past month. This has lagged the Medical sector's loss of 3.72% and the S&P 500's gain of 5.41% in that time.

The investment community will be closely monitoring the performance of Organon in its forthcoming earnings report. In that report, analysts expect Organon to post earnings of $0.97 per share. This would mark year-over-year growth of 11.49%. Meanwhile, our latest consensus estimate is calling for revenue of $1.56 billion, up 2.44% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.33 per share and revenue of $6.34 billion. These totals would mark changes of +4.59% and +1.28%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Organon possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Organon currently has a Forward P/E ratio of 4.18. Its industry sports an average Forward P/E of 20.74, so one might conclude that Organon is trading at a discount comparatively.

Investors should also note that OGN has a PEG ratio of 0.76 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.75.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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