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Merck (MRK) Falls More Steeply Than Broader Market: What Investors Need to Know
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Merck (MRK - Free Report) closed the most recent trading day at $81.52, moving -2.57% from the previous trading session. This change lagged the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the pharmaceutical company had gained 3.35% outpaced the Medical sector's loss of 1.56% and lagged the S&P 500's gain of 4.97%.
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 July 29, 2025. The company is forecasted to report an EPS of $2.01, showcasing a 11.84% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $15.71 billion, reflecting a 2.48% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $8.85 per share and a revenue of $64.82 billion, demonstrating changes of +15.69% and +1.02%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.85% lower within the past month. Currently, Merck is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 9.45 right now. This represents a discount compared to its industry average Forward P/E of 13.77.
One should further note that MRK currently holds a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MRK's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Merck (MRK) Falls More Steeply Than Broader Market: What Investors Need to Know
Merck (MRK - Free Report) closed the most recent trading day at $81.52, moving -2.57% from the previous trading session. This change lagged the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the pharmaceutical company had gained 3.35% outpaced the Medical sector's loss of 1.56% and lagged the S&P 500's gain of 4.97%.
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 July 29, 2025. The company is forecasted to report an EPS of $2.01, showcasing a 11.84% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $15.71 billion, reflecting a 2.48% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $8.85 per share and a revenue of $64.82 billion, demonstrating changes of +15.69% and +1.02%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.85% lower within the past month. Currently, Merck is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 9.45 right now. This represents a discount compared to its industry average Forward P/E of 13.77.
One should further note that MRK currently holds a PEG ratio of 0.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MRK's industry had an average PEG ratio of 1.27 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.