Merck (MRK - Free Report) closed the most recent trading day at $68.22, moving -1.2% from the previous trading session. This move lagged the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 2.39%, and the Nasdaq, a tech-heavy index, lost 0.45%.
Heading into today, shares of the pharmaceutical company had lost 13.98% over the past month, outpacing the Medical sector's loss of 19.66% and the S&P 500's loss of 24.07% in that time.
Investors will be hoping for strength from MRK as it approaches its next earnings release, which is expected to be April 28, 2020. On that day, MRK is projected to report earnings of $1.40 per share, which would represent year-over-year growth of 14.75%. Meanwhile, our latest consensus estimate is calling for revenue of $11.97 billion, up 10.69% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $5.72 per share and revenue of $49.82 billion. These results would represent year-over-year changes of +10.21% and +6.36%, respectively.
Investors might also notice recent changes to analyst estimates for MRK. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. MRK is currently a Zacks Rank #3 (Hold).
In terms of valuation, MRK is currently trading at a Forward P/E ratio of 12.07. Its industry sports an average Forward P/E of 12.1, so we one might conclude that MRK is trading at a discount comparatively.
Investors should also note that MRK has a PEG ratio of 1.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.