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Merck (MRK) Gains As Market Dips: What You Should Know
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In the latest trading session, Merck (MRK - Free Report) closed at $83.72, marking a +0.28% move from the previous day. This change outpaced the S&P 500's 1.26% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the pharmaceutical company had gained 7.41% over the past month. This has outpaced the Medical sector's gain of 4.88% and the S&P 500's gain of 6.07% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $1.87, up 33.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.73 billion, up 21.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.23 per share and revenue of $57.09 billion. These totals would mark changes of +20.1% and +13.83%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Merck is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 11.56. For comparison, its industry has an average Forward P/E of 13.02, which means Merck is trading at a discount to the group.
Investors should also note that MRK has a PEG ratio of 1.35 right now. 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 2.38 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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) Gains As Market Dips: What You Should Know
In the latest trading session, Merck (MRK - Free Report) closed at $83.72, marking a +0.28% move from the previous day. This change outpaced the S&P 500's 1.26% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.44%.
Prior to today's trading, shares of the pharmaceutical company had gained 7.41% over the past month. This has outpaced the Medical sector's gain of 4.88% and the S&P 500's gain of 6.07% in that time.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $1.87, up 33.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.73 billion, up 21.91% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.23 per share and revenue of $57.09 billion. These totals would mark changes of +20.1% and +13.83%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Merck is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 11.56. For comparison, its industry has an average Forward P/E of 13.02, which means Merck is trading at a discount to the group.
Investors should also note that MRK has a PEG ratio of 1.35 right now. 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 2.38 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.