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Merck (MRK) Stock Declines While Market Improves: Some Information for Investors
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Merck (MRK - Free Report) closed at $105.88 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 0.27% gain on the day. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.19%.
Shares of the pharmaceutical company have appreciated by 5.68% over the course of the past month, underperforming the Medical sector's gain of 7.01% and the S&P 500's gain of 6.94%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is expected to report EPS of $0.15, down 90.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.61 billion, up 5.65% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and revenue of $60 billion, which would represent changes of -76.74% and +1.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. Merck is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Merck currently has a Forward P/E ratio of 61.63. This valuation marks a premium compared to its industry's average Forward P/E of 15.58.
One should further note that MRK currently holds a PEG ratio of 7.14. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 2.18.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Merck (MRK) Stock Declines While Market Improves: Some Information for Investors
Merck (MRK - Free Report) closed at $105.88 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's 0.27% gain on the day. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.19%.
Shares of the pharmaceutical company have appreciated by 5.68% over the course of the past month, underperforming the Medical sector's gain of 7.01% and the S&P 500's gain of 6.94%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is expected to report EPS of $0.15, down 90.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.61 billion, up 5.65% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and revenue of $60 billion, which would represent changes of -76.74% and +1.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. Merck is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Merck currently has a Forward P/E ratio of 61.63. This valuation marks a premium compared to its industry's average Forward P/E of 15.58.
One should further note that MRK currently holds a PEG ratio of 7.14. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 2.18.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.