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Merck (MRK) Dips More Than Broader Markets: What You Should Know
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Merck (MRK - Free Report) closed the most recent trading day at $102.95, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the pharmaceutical company had lost 4.29% over the past month. This has lagged the Medical sector's loss of 3.01% and the S&P 500's loss of 2.86% in that time.
Investors will be hoping for strength from Merck as it approaches its next earnings release, which is expected to be October 26, 2023. In that report, analysts expect Merck to post earnings of $1.95 per share. This would mark year-over-year growth of 5.41%. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 2.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $59.57 billion. These totals would mark changes of -59.76% and +0.48%, respectively, from last year.
Any recent changes to analyst estimates for Merck should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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, 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 remained stagnant. Merck is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 34.67. For comparison, its industry has an average Forward P/E of 14.8, which means Merck is trading at a premium to the group.
We can also see that MRK currently has a PEG ratio of 4.15. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% 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.
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
Merck (MRK - Free Report) closed the most recent trading day at $102.95, moving -1.29% from the previous trading session. This move lagged the S&P 500's daily loss of 0.27%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the pharmaceutical company had lost 4.29% over the past month. This has lagged the Medical sector's loss of 3.01% and the S&P 500's loss of 2.86% in that time.
Investors will be hoping for strength from Merck as it approaches its next earnings release, which is expected to be October 26, 2023. In that report, analysts expect Merck to post earnings of $1.95 per share. This would mark year-over-year growth of 5.41%. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 2.37% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $59.57 billion. These totals would mark changes of -59.76% and +0.48%, respectively, from last year.
Any recent changes to analyst estimates for Merck should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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, 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 remained stagnant. Merck is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 34.67. For comparison, its industry has an average Forward P/E of 14.8, which means Merck is trading at a premium to the group.
We can also see that MRK currently has a PEG ratio of 4.15. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.97 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.