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Merck (MRK) Stock Falls Amid Market Uptick: What Investors Need to Know

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Merck (MRK - Free Report) ended the recent trading session at $126.96, demonstrating a -0.15% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 1.14%.

Shares of the pharmaceutical company have appreciated by 0.61% over the course of the past month, underperforming the Medical sector's gain of 3.58% and the S&P 500's gain of 5.2%.

Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. In that report, analysts expect Merck to post earnings of $2.13 per share. This would mark year-over-year growth of 52.14%. At the same time, our most recent consensus estimate is projecting a revenue of $15.32 billion, reflecting a 5.74% rise from the equivalent quarter last year.

MRK's full-year Zacks Consensus Estimates are calling for earnings of $8.53 per share and revenue of $64.04 billion. These results would represent year-over-year changes of +464.9% and +6.53%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. The Zacks Consensus EPS estimate has moved 2.33% higher within the past month. Right now, Merck possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Merck is currently trading at a Forward P/E ratio of 14.9. This represents no noticeable deviation compared to its industry's average Forward P/E of 14.9.

Also, we should mention that MRK has a PEG ratio of 1.66. 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. MRK's industry had an average PEG ratio of 1.67 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 30% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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