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Here's Why Organon (OGN) Gained But Lagged the Market Today

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In the latest trading session, Organon (OGN - Free Report) closed at $18.10, marking a +0.56% move from the previous day. This move lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.87%.

The pharmaceutical company's stock has dropped by 12.07% in the past month, falling short of the Medical sector's loss of 3% and the S&P 500's gain of 4.87%.

The upcoming earnings release of Organon will be of great interest to investors. The company's earnings report is expected on October 31, 2024. On that day, Organon is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 11.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 2.44% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.34 per share and a revenue of $6.34 billion, indicating changes of +4.83% and +1.28%, respectively, from the former year.

Any recent changes to analyst estimates for Organon should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. Right now, Organon possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Organon has a Forward P/E ratio of 4.14 right now. This expresses a discount compared to the average Forward P/E of 20.29 of its industry.

It is also worth noting that OGN currently has a PEG ratio of 0.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% 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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