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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 $85.84, marking a -0.39% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the pharmaceutical company had lost 1.61% in the past month. In that same time, the Medical sector lost 6.56%, while the S&P 500 lost 9.7%.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Merck to post earnings of $1.74 per share. This would mark a year-over-year decline of 0.57%. Our most recent consensus estimate is calling for quarterly revenue of $14.4 billion, up 9.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.33 per share and revenue of $59.04 billion. These totals would mark changes of +21.76% and +17.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 11.75. For comparison, its industry has an average Forward P/E of 12.03, which means Merck is trading at a discount to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.7 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 81, which puts it in the top 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $85.84, marking a -0.39% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the pharmaceutical company had lost 1.61% in the past month. In that same time, the Medical sector lost 6.56%, while the S&P 500 lost 9.7%.
Merck will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Merck to post earnings of $1.74 per share. This would mark a year-over-year decline of 0.57%. Our most recent consensus estimate is calling for quarterly revenue of $14.4 billion, up 9.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.33 per share and revenue of $59.04 billion. These totals would mark changes of +21.76% and +17.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 11.75. For comparison, its industry has an average Forward P/E of 12.03, which means Merck is trading at a discount to the group.
It is also worth noting that MRK currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.7 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 81, which puts it in the top 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.