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Organon (OGN) Ascends While Market Falls: Some Facts to Note

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The latest trading session saw Organon (OGN - Free Report) ending at $15.06, denoting a +0.74% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.

The pharmaceutical company's shares have seen a decrease of 6.45% over the last month, not keeping up with the Medical sector's loss of 4.56% and the S&P 500's gain of 0.4%.

Market participants will be closely following the financial results of Organon in its upcoming release. The company is expected to report EPS of $0.87, down 1.14% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.57 billion, indicating a 1.87% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.12 per share and a revenue of $6.38 billion, signifying shifts of -0.48% and +1.86%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Organon possesses a Zacks Rank of #4 (Sell).

From a valuation perspective, Organon is currently exchanging hands at a Forward P/E ratio of 3.63. This represents a discount compared to its industry's average Forward P/E of 16.87.

One should further note that OGN currently holds a PEG ratio of 0.71. 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 1.48 based on yesterday's closing prices.

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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