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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 $108.78 in the latest trading session, marking a -1.87% move from the prior day. This move lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.9%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the pharmaceutical company had gained 8.79% over the past month. This has outpaced the Medical sector's gain of 6.05% and the S&P 500's gain of 3.74% in that time.
Merck will be looking to display strength as it nears its next earnings release. In that report, analysts expect Merck to post earnings of $1.54 per share. This would mark a year-over-year decline of 14.44%. Meanwhile, our latest consensus estimate is calling for revenue of $13.7 billion, up 1.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.38 per share and revenue of $59.16 billion, which would represent changes of +22.59% and +17.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Merck is currently a Zacks Rank #2 (Buy).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 15.12, which means Merck is trading at a discount to the group.
Investors should also note that MRK has a PEG ratio of 1.47 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.
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Merck (MRK) Dips More Than Broader Markets: What You Should Know
Merck (MRK - Free Report) closed at $108.78 in the latest trading session, marking a -1.87% move from the prior day. This move lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.9%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the pharmaceutical company had gained 8.79% over the past month. This has outpaced the Medical sector's gain of 6.05% and the S&P 500's gain of 3.74% in that time.
Merck will be looking to display strength as it nears its next earnings release. In that report, analysts expect Merck to post earnings of $1.54 per share. This would mark a year-over-year decline of 14.44%. Meanwhile, our latest consensus estimate is calling for revenue of $13.7 billion, up 1.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.38 per share and revenue of $59.16 billion, which would represent changes of +22.59% and +17.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Merck is currently a Zacks Rank #2 (Buy).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 15.02. For comparison, its industry has an average Forward P/E of 15.12, which means Merck is trading at a discount to the group.
Investors should also note that MRK has a PEG ratio of 1.47 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.