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Merck (MRK) Gains As Market Dips: What You Should Know
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Merck (MRK - Free Report) closed the most recent trading day at $91.05, moving +0.63% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the pharmaceutical company had gained 2.63% over the past month. This has outpaced the Medical sector's loss of 8.25% and the S&P 500's loss of 11.07% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Merck to post earnings of $1.74 per share. This would mark a year-over-year decline of 0.57%. Meanwhile, our latest consensus estimate is calling for revenue of $14.4 billion, up 9.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.33 per share and revenue of $59.04 billion, which would represent changes of +21.76% and +17.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Merck. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Merck is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 12.34 right now. Its industry sports an average Forward P/E of 12.38, so we one might conclude that Merck is trading at a discount comparatively.
Also, we should mention that MRK has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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.
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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Merck (MRK) Gains As Market Dips: What You Should Know
Merck (MRK - Free Report) closed the most recent trading day at $91.05, moving +0.63% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the pharmaceutical company had gained 2.63% over the past month. This has outpaced the Medical sector's loss of 8.25% and the S&P 500's loss of 11.07% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Merck to post earnings of $1.74 per share. This would mark a year-over-year decline of 0.57%. Meanwhile, our latest consensus estimate is calling for revenue of $14.4 billion, up 9.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.33 per share and revenue of $59.04 billion, which would represent changes of +21.76% and +17.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Merck. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Merck is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 12.34 right now. Its industry sports an average Forward P/E of 12.38, so we one might conclude that Merck is trading at a discount comparatively.
Also, we should mention that MRK has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.