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(MRK) Rises As Market Takes a Dip: Key Facts

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The most recent trading session ended with Merck (MRK - Free Report) standing at $103.60, reflecting a +1.4% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.12%.

Shares of the pharmaceutical company witnessed a loss of 4.06% over the previous month, beating the performance of the Medical sector with its loss of 4.65% and the S&P 500's loss of 5.53%.

Market participants will be closely following the financial results of Merck in its upcoming release. The company plans to announce its earnings on October 26, 2023. The company's earnings per share (EPS) are projected to be $1.95, reflecting a 5.41% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.31 billion, up 2.37% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.04 per share and a revenue of $59.57 billion, signifying shifts of -59.36% and +0.48%, respectively, from the last year.

Any recent changes to analyst estimates for Merck should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% higher. Merck is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 33.63. This represents a premium compared to its industry's average Forward P/E of 13.63.

Also, we should mention that MRK has a PEG ratio of 4.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.63.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 19% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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