Underappreciated healthcare stock Organon (NYSE:OGN), which was spun off from pharma giant Merck (NYSE:MRK) in 2021, looks like an enticing opportunity for both value investors and income investors. I’m bullish on this overlooked healthcare spinoff due to its recent momentum, remarkably cheap valuation, stable and profitable business, and attractive 5.4% dividend yield.
What Is Organon?
This $5.4 billion company has three primary businesses: women’s health, biosimilars, and established brands (off-patent drugs). While these may not be the most exciting or highest-growth segments within the healthcare market, they are all stable, profitable businesses that generate cash and enjoy large end markets.
Strikingly Cheap Valuation
It’s difficult to overstate just how cheap Organon is. The stock is up an impressive 50.8% year-to-date after bottoming out last December, and even after this momentous run, it still…
