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Merck (MRK) Declines More Than Market: Some Information for Investors

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Merck (MRK - Free Report) ended the recent trading session at $87.61, demonstrating a -1.34% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.

The stock of pharmaceutical company has risen by 5.6% in the past month, leading the Medical sector's gain of 2.72% and the S&P 500's gain of 4.06%.

Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company is forecasted to report an EPS of $2.37, showcasing a 50.96% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $17.19 billion, indicating a 3.18% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.93 per share and revenue of $64.93 billion, indicating changes of +16.73% and +1.19%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Right now, Merck possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 9.94. This denotes a discount relative to the industry average Forward P/E of 14.65.

One should further note that MRK currently holds a PEG ratio of 0.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.59 as trading concluded yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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