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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
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Merck (MRK - Free Report) closed at $129.90 in the latest trading session, marking a -0.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.
Heading into today, shares of the pharmaceutical company had gained 6.12% over the past month, outpacing the Medical sector's loss of 1.51% and the S&P 500's gain of 1.5% in that time.
Investors will be eagerly watching for the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. The company is expected to report EPS of $2.12, up 51.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $15.32 billion, reflecting a 5.75% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.59 per share and revenue of $64.06 billion, indicating changes of +468.87% and +6.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Merck boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 15.18. This denotes a premium relative to the industry's average Forward P/E of 14.81.
Investors should also note that MRK has a PEG ratio of 0.52 right now. 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 was holding an average PEG ratio of 1.73 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
Merck (MRK - Free Report) closed at $129.90 in the latest trading session, marking a -0.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 0.23%.
Heading into today, shares of the pharmaceutical company had gained 6.12% over the past month, outpacing the Medical sector's loss of 1.51% and the S&P 500's gain of 1.5% in that time.
Investors will be eagerly watching for the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. The company is expected to report EPS of $2.12, up 51.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $15.32 billion, reflecting a 5.75% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.59 per share and revenue of $64.06 billion, indicating changes of +468.87% and +6.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Merck boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 15.18. This denotes a premium relative to the industry's average Forward P/E of 14.81.
Investors should also note that MRK has a PEG ratio of 0.52 right now. 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 was holding an average PEG ratio of 1.73 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 12% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.