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Organon (OGN) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Organon (OGN - Free Report) standing at $17.45, reflecting a -0.91% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Heading into today, shares of the pharmaceutical company had lost 9.65% over the past month, lagging the Medical sector's loss of 3.03% and the S&P 500's gain of 4.46% in that time.

The investment community will be closely monitoring the performance of Organon in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2024. The company's upcoming EPS is projected at $0.91, signifying a 4.6% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.56 billion, showing a 2.74% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.29 per share and a revenue of $6.35 billion, indicating changes of +3.62% and +1.32%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% lower. Organon currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Organon is currently trading at a Forward P/E ratio of 4.11. This signifies a discount in comparison to the average Forward P/E of 20.32 for its industry.

Meanwhile, OGN's PEG ratio is currently 0.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services industry currently had an average PEG ratio of 1.85 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 173, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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