Merck (MRK – Free Report) ended the recent trading session at $94.02, demonstrating a -0.74% swing from the preceding day’s closing price. The stock’s change was less than the S&P 500’s daily gain of 1.08%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.
Prior to today’s trading, shares of the pharmaceutical company had gained 13.72% over the past month. This has outpaced the Medical sector’s gain of 0.21% and the S&P 500’s loss of 8.26% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $2.16, reflecting a 4.35% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $15.75 billion, reflecting a 0.16% fall from the equivalent quarter last year.
MRK’s full-year Zacks Consensus Estimates are calling for earnings of $9.01 per share and revenue of $65.19 billion. These results would represent year-over-year changes of +17.78% and +1.6%, respectively.
Investors might also notice recent changes to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% downward. Merck presently features a Zacks Rank of #4 (Sell).
Investors should also note Merck’s current valuation metrics, including its Forward P/E ratio of 10.51. This expresses a discount compared to the average Forward P/E of 14.82 of its industry.
It’s also important to note that MRK currently trades at a PEG ratio of 0.83. 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. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.32 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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