We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Merck (MRK) Advances But Underperforms Market: Key Facts
Read MoreHide Full Article
Merck (MRK - Free Report) closed at $117.38 in the latest trading session, marking a +0.14% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.41% for the day. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 2.2%.
Heading into today, shares of the pharmaceutical company had gained 12.98% over the past month, outpacing the Medical sector's gain of 6.57% and the S&P 500's gain of 2.9% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on February 1, 2024. The company's earnings per share (EPS) are projected to be -$0.10, reflecting a 106.17% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 5.65% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. As of now, Merck holds a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 13.78. This valuation marks a discount compared to its industry's average Forward P/E of 14.52.
It is also worth noting that MRK currently has a PEG ratio of 1.6. 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 industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Merck (MRK) Advances But Underperforms Market: Key Facts
Merck (MRK - Free Report) closed at $117.38 in the latest trading session, marking a +0.14% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.41% for the day. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 2.2%.
Heading into today, shares of the pharmaceutical company had gained 12.98% over the past month, outpacing the Medical sector's gain of 6.57% and the S&P 500's gain of 2.9% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on February 1, 2024. The company's earnings per share (EPS) are projected to be -$0.10, reflecting a 106.17% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.61 billion, up 5.65% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. As of now, Merck holds a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 13.78. This valuation marks a discount compared to its industry's average Forward P/E of 14.52.
It is also worth noting that MRK currently has a PEG ratio of 1.6. 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 industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.