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Merck (MRK) Outperforms Broader Market: What You Need to Know
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Merck (MRK - Free Report) closed the most recent trading day at $147.17, moving +1.56% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
The pharmaceutical company's stock has dropped by 4.79% in the past month, falling short of the Medical sector's loss of 0.26% and the S&P 500's loss of 2.85%.
The upcoming earnings release of Merck will be of great interest to investors. The company is forecasted to report an EPS of $2.27, showcasing a 12.02% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.61 billion, indicating a 1.94% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and a revenue of $67.32 billion, representing changes of -66.93% and +3.56%, respectively, from the prior year.
Any recent changes to analyst estimates for Merck should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 0.24% lower. Merck presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Merck is currently exchanging hands at a Forward P/E ratio of 48.34. Its industry sports an average Forward P/E of 15.67, so one might conclude that Merck is trading at a premium comparatively.
Investors should also note that MRK has a PEG ratio of 5.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.98 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Merck (MRK) Outperforms Broader Market: What You Need to Know
Merck (MRK - Free Report) closed the most recent trading day at $147.17, moving +1.56% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.
The pharmaceutical company's stock has dropped by 4.79% in the past month, falling short of the Medical sector's loss of 0.26% and the S&P 500's loss of 2.85%.
The upcoming earnings release of Merck will be of great interest to investors. The company is forecasted to report an EPS of $2.27, showcasing a 12.02% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $17.61 billion, indicating a 1.94% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and a revenue of $67.32 billion, representing changes of -66.93% and +3.56%, respectively, from the prior year.
Any recent changes to analyst estimates for Merck should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 0.24% lower. Merck presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Merck is currently exchanging hands at a Forward P/E ratio of 48.34. Its industry sports an average Forward P/E of 15.67, so one might conclude that Merck is trading at a premium comparatively.
Investors should also note that MRK has a PEG ratio of 5.81 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.98 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.