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Merck (MRK) Stock Moves -0.7%: What You Should Know
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Merck (MRK - Free Report) closed the most recent trading day at $74.09, moving -0.7% from the previous trading session. This change was narrower than the S&P 500's 0.76% loss on the day. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Heading into today, shares of the pharmaceutical company had gained 4.76% over the past month, outpacing the Medical sector's loss of 0.16% and the S&P 500's loss of 1.41% in that time.
MRK will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2019. In that report, analysts expect MRK to post earnings of $1.04 per share. This would mark year-over-year growth of 6.12%. Meanwhile, our latest consensus estimate is calling for revenue of $11.05 billion, up 5.91% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $42.29 billion, which would represent changes of +9.05% and +5.41%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MRK. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.32% higher. MRK is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that MRK has a Forward P/E ratio of 17.21 right now. For comparison, its industry has an average Forward P/E of 14.52, which means MRK is trading at a premium to the group.
Meanwhile, MRK's PEG ratio is currently 2.03. 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 1.99 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 87, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Merck (MRK) Stock Moves -0.7%: What You Should Know
Merck (MRK - Free Report) closed the most recent trading day at $74.09, moving -0.7% from the previous trading session. This change was narrower than the S&P 500's 0.76% loss on the day. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Heading into today, shares of the pharmaceutical company had gained 4.76% over the past month, outpacing the Medical sector's loss of 0.16% and the S&P 500's loss of 1.41% in that time.
MRK will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2019. In that report, analysts expect MRK to post earnings of $1.04 per share. This would mark year-over-year growth of 6.12%. Meanwhile, our latest consensus estimate is calling for revenue of $11.05 billion, up 5.91% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $42.29 billion, which would represent changes of +9.05% and +5.41%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MRK. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.32% higher. MRK is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that MRK has a Forward P/E ratio of 17.21 right now. For comparison, its industry has an average Forward P/E of 14.52, which means MRK is trading at a premium to the group.
Meanwhile, MRK's PEG ratio is currently 2.03. 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 1.99 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 87, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.