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Organon (OGN) Surpasses Market Returns: Some Facts Worth Knowing

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The most recent trading session ended with Organon (OGN - Free Report) standing at $15.88, reflecting a +0.89% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 1.24%, while the tech-heavy Nasdaq added 0.65%.

Prior to today's trading, shares of the pharmaceutical company had gained 7.07% over the past month. This has outpaced the Medical sector's loss of 0.32% and the S&P 500's gain of 1.17% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Organon in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.87, showcasing a 1.14% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.57 billion, indicating a 1.87% decrease compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Organon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.97% downward. Organon is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Organon's current valuation metrics, including its Forward P/E ratio of 3.87. This signifies a discount in comparison to the average Forward P/E of 17.19 for its industry.

We can additionally observe that OGN currently boasts a PEG ratio of 0.81. 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 average PEG ratio for the Medical Services industry stood at 1.49 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 146, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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