The most recent trading session ended with Merck (MRK – Free Report) standing at $98.37, reflecting a -1.33% shift from the previouse trading day’s closing. This change lagged the S&P 500’s 1.07% loss on the day. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 1.19%.
The pharmaceutical company’s stock has dropped by 1.91% in the past month, exceeding the Medical sector’s loss of 5.64% and lagging the S&P 500’s loss of 0.36%.
The upcoming earnings release of Merck will be of great interest to investors. The company’s earnings report is expected on February 4, 2025. It is anticipated that the company will report an EPS of $1.80, marking a 5900% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $15.52 billion, up 6.05% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.72 per share and revenue of $64.06 billion. These totals would mark changes of +411.26% and +6.56%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Merck. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. As of now, Merck holds a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 12.91. This denotes a discount relative to the industry’s average Forward P/E of 13.88.
One should further note that MRK currently holds a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.46.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 44% of all industries, numbering over 250.
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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.
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