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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 $75.58, marking a -0.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%.
Heading into today, shares of the pharmaceutical company had lost 1.69% over the past month, lagging the Medical sector's gain of 2.36% and the S&P 500's gain of 2.23% in that time.
Investors will be hoping for strength from MRK as it approaches its next earnings release, which is expected to be July 29, 2021. In that report, analysts expect MRK to post earnings of $1.58 per share. This would mark year-over-year growth of 15.33%. Our most recent consensus estimate is calling for quarterly revenue of $12.28 billion, up 12.92% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $6.47 per share and revenue of $49.4 billion. These results would represent year-over-year changes of +8.92% and +2.93%, respectively.
Investors might also notice recent changes to analyst estimates for MRK. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. MRK is currently a Zacks Rank #4 (Sell).
In terms of valuation, MRK is currently trading at a Forward P/E ratio of 11.77. Its industry sports an average Forward P/E of 14.62, so we one might conclude that MRK is trading at a discount comparatively.
It is also worth noting that MRK currently has a PEG ratio of 1.92. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.11 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much 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 $75.58, marking a -0.8% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%.
Heading into today, shares of the pharmaceutical company had lost 1.69% over the past month, lagging the Medical sector's gain of 2.36% and the S&P 500's gain of 2.23% in that time.
Investors will be hoping for strength from MRK as it approaches its next earnings release, which is expected to be July 29, 2021. In that report, analysts expect MRK to post earnings of $1.58 per share. This would mark year-over-year growth of 15.33%. Our most recent consensus estimate is calling for quarterly revenue of $12.28 billion, up 12.92% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $6.47 per share and revenue of $49.4 billion. These results would represent year-over-year changes of +8.92% and +2.93%, respectively.
Investors might also notice recent changes to analyst estimates for MRK. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. MRK is currently a Zacks Rank #4 (Sell).
In terms of valuation, MRK is currently trading at a Forward P/E ratio of 11.77. Its industry sports an average Forward P/E of 14.62, so we one might conclude that MRK is trading at a discount comparatively.
It is also worth noting that MRK currently has a PEG ratio of 1.92. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.11 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.