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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
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Merck (MRK - Free Report) closed the most recent trading day at $78.33, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily gain of 1.71%.
Prior to today's trading, shares of the pharmaceutical company had gained 8.43% over the past month. This has outpaced the Medical sector's loss of 5.62% and the S&P 500's loss of 2.25% in that time.
MRK will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2021. In that report, analysts expect MRK to post earnings of $1.52 per share. This would mark a year-over-year decline of 12.64%. Meanwhile, our latest consensus estimate is calling for revenue of $12.42 billion, down 1.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.67 per share and revenue of $48.25 billion. These totals would mark changes of -4.55% and +0.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MRK. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 2.77% higher. MRK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MRK is holding a Forward P/E ratio of 13.93. This valuation marks a premium compared to its industry's average Forward P/E of 13.43.
Also, we should mention that MRK has a PEG ratio of 2.21. 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. MRK's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
Merck (MRK - Free Report) closed the most recent trading day at $78.33, moving -0.79% from the previous trading session. This change lagged the S&P 500's daily gain of 1.71%.
Prior to today's trading, shares of the pharmaceutical company had gained 8.43% over the past month. This has outpaced the Medical sector's loss of 5.62% and the S&P 500's loss of 2.25% in that time.
MRK will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2021. In that report, analysts expect MRK to post earnings of $1.52 per share. This would mark a year-over-year decline of 12.64%. Meanwhile, our latest consensus estimate is calling for revenue of $12.42 billion, down 1.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.67 per share and revenue of $48.25 billion. These totals would mark changes of -4.55% and +0.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MRK. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 2.77% higher. MRK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MRK is holding a Forward P/E ratio of 13.93. This valuation marks a premium compared to its industry's average Forward P/E of 13.43.
Also, we should mention that MRK has a PEG ratio of 2.21. 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. MRK's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.