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Merck (MRK) Dips More Than Broader Markets: What You Should Know
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Merck (MRK - Free Report) closed at $93.26 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.67% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the pharmaceutical company had gained 10.01% over the past month. This has outpaced the Medical sector's loss of 1.92% and the S&P 500's loss of 3.76% 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. The company is expected to report EPS of $1.68, down 4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.19 billion, up 7.85% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $7.31 per share and revenue of $58.74 billion. These results would represent year-over-year changes of +21.43% and +17.11%, respectively.
It is also important to note the recent changes to analyst estimates for Merck. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. Merck is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 12.94. For comparison, its industry has an average Forward P/E of 12.86, which means Merck is trading at a premium to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRK's industry had an average PEG ratio of 1.78 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Merck (MRK) Dips More Than Broader Markets: What You Should Know
Merck (MRK - Free Report) closed at $93.26 in the latest trading session, marking a -1.43% move from the prior day. This change lagged the S&P 500's 0.67% loss on the day. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the pharmaceutical company had gained 10.01% over the past month. This has outpaced the Medical sector's loss of 1.92% and the S&P 500's loss of 3.76% 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. The company is expected to report EPS of $1.68, down 4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.19 billion, up 7.85% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $7.31 per share and revenue of $58.74 billion. These results would represent year-over-year changes of +21.43% and +17.11%, respectively.
It is also important to note the recent changes to analyst estimates for Merck. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.29% lower within the past month. Merck is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 12.94. For comparison, its industry has an average Forward P/E of 12.86, which means Merck is trading at a premium to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRK's industry had an average PEG ratio of 1.78 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.