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Here's Why Merck (MRK) Fell More Than Broader Market
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The most recent trading session ended with Merck (MRK - Free Report) standing at $122.16, reflecting a -0.41% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
The pharmaceutical company's shares have seen a decrease of 2.21% over the last month, not keeping up with the Medical sector's gain of 2.91% and the S&P 500's gain of 3.18%.
The investment community will be paying close attention to the earnings performance of Merck in its upcoming release. The company is slated to reveal its earnings on April 25, 2024. On that day, Merck is projected to report earnings of $2.12 per share, which would represent year-over-year growth of 51.43%. Our most recent consensus estimate is calling for quarterly revenue of $15.32 billion, up 5.75% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and a revenue of $64.05 billion, representing changes of +468.21% and +6.54%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 14.3 right now. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.3.
It's also important to note that MRK currently trades at a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.73.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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Here's Why Merck (MRK) Fell More Than Broader Market
The most recent trading session ended with Merck (MRK - Free Report) standing at $122.16, reflecting a -0.41% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
The pharmaceutical company's shares have seen a decrease of 2.21% over the last month, not keeping up with the Medical sector's gain of 2.91% and the S&P 500's gain of 3.18%.
The investment community will be paying close attention to the earnings performance of Merck in its upcoming release. The company is slated to reveal its earnings on April 25, 2024. On that day, Merck is projected to report earnings of $2.12 per share, which would represent year-over-year growth of 51.43%. Our most recent consensus estimate is calling for quarterly revenue of $15.32 billion, up 5.75% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and a revenue of $64.05 billion, representing changes of +468.21% and +6.54%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 14.3 right now. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.3.
It's also important to note that MRK currently trades at a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.73.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 195, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.