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Merck (MRK) Stock Slides as Market Rises: Facts to Know Before You Trade
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Merck (MRK - Free Report) closed the most recent trading day at $126.15, moving -0.47% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
The pharmaceutical company's stock has climbed by 3.76% in the past month, exceeding the Medical sector's loss of 4.72% and the S&P 500's gain of 0.8%.
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. It is anticipated that the company will report an EPS of $2.06, marking a 47.14% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.32 billion, up 5.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and revenue of $64.06 billion, which would represent changes of +468.21% and +6.56%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Right now, Merck possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 14.78. This expresses a premium compared to the average Forward P/E of 14.1 of its industry.
We can also see that MRK currently has a PEG ratio of 0.5. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Merck (MRK) Stock Slides as Market Rises: Facts to Know Before You Trade
Merck (MRK - Free Report) closed the most recent trading day at $126.15, moving -0.47% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.74%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 1.68%.
The pharmaceutical company's stock has climbed by 3.76% in the past month, exceeding the Medical sector's loss of 4.72% and the S&P 500's gain of 0.8%.
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. It is anticipated that the company will report an EPS of $2.06, marking a 47.14% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.32 billion, up 5.75% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and revenue of $64.06 billion, which would represent changes of +468.21% and +6.56%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Right now, Merck possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 14.78. This expresses a premium compared to the average Forward P/E of 14.1 of its industry.
We can also see that MRK currently has a PEG ratio of 0.5. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 223, positioning it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.