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Organon (OGN) Increases Yet Falls Behind Market: What Investors Need to Know

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Organon (OGN - Free Report) closed at $20.81 in the latest trading session, marking a +0.39% move from the prior day. This change lagged the S&P 500's 0.64% gain on the day. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.

The pharmaceutical company's shares have seen an increase of 1.87% over the last month, surpassing the Medical sector's gain of 0.71% and falling behind the S&P 500's gain of 3.82%.

Market participants will be closely following the financial results of Organon in its upcoming release. The company plans to announce its earnings on August 6, 2024. On that day, Organon is projected to report earnings of $1.12 per share, which would represent a year-over-year decline of 14.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.63 billion, indicating a 1.16% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.45 per share and a revenue of $6.37 billion, representing changes of +7.49% and +1.67%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Organon. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Organon currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Organon is currently being traded at a Forward P/E ratio of 4.66. This valuation marks a discount compared to its industry's average Forward P/E of 20.27.

Meanwhile, OGN's PEG ratio is currently 0.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical Services industry had an average PEG ratio of 1.55 as trading concluded yesterday.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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