Organogenesis (ORGO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Organogenesis (ORGO Free Report) closed at $11.44, marking a +0.53% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.42%.

Heading into today, shares of the regenerative medicine company had lost 12.8% over the past month, lagging the Medical sector’s gain of 6.03% and the S&P 500’s gain of 7.03% in that time.

Investors will be hoping for strength from ORGO as it approaches its next earnings release, which is expected to be November 9, 2021. In that report, analysts expect ORGO to post earnings of $0.06 per share. This would mark a year-over-year decline of 68.42%. Our most recent consensus estimate is calling for quarterly revenue of $112.1 million, up 11.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.39 per share and revenue of $462.25 million, which would represent changes of +143.75% and +36.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ORGO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ORGO currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ORGO has a Forward P/E ratio of 29.56 right now. Its industry sports an average Forward P/E of 16.61, so we one might conclude that ORGO is trading at a premium comparatively.

The Medical – Drugs industry is part of the Medical sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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.

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