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Merck (MRK) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Merck (MRK - Free Report) closed at $110.45, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.
Heading into today, shares of the pharmaceutical company had gained 2.57% over the past month, outpacing the Medical sector's gain of 1.12% and lagging the S&P 500's gain of 4.01% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. On that day, Merck is projected to report earnings of $1.55 per share, which would represent a year-over-year decline of 13.89%. Our most recent consensus estimate is calling for quarterly revenue of $13.71 billion, up 1.36% from the year-ago period.
Any recent changes to analyst estimates for Merck should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.61% lower. Merck currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 15.39. For comparison, its industry has an average Forward P/E of 14.64, which means Merck is trading at a premium to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.41. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
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
In the latest trading session, Merck (MRK - Free Report) closed at $110.45, marking a -1.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.
Heading into today, shares of the pharmaceutical company had gained 2.57% over the past month, outpacing the Medical sector's gain of 1.12% and lagging the S&P 500's gain of 4.01% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. On that day, Merck is projected to report earnings of $1.55 per share, which would represent a year-over-year decline of 13.89%. Our most recent consensus estimate is calling for quarterly revenue of $13.71 billion, up 1.36% from the year-ago period.
Any recent changes to analyst estimates for Merck should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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 0.61% lower. Merck currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 15.39. For comparison, its industry has an average Forward P/E of 14.64, which means Merck is trading at a premium to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.41. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.