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Merck (MRK) Dips More Than Broader Markets: What You Should Know
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Merck (MRK - Free Report) closed at $114.13 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Coming into today, shares of the pharmaceutical company had gained 8.8% in the past month. In that same time, the Medical sector gained 5.81%, while the S&P 500 gained 6.23%.
Wall Street will be looking for positivity from Merck as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $1.36, down 36.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.84 billion, down 12.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $58.59 billion, which would represent changes of -12.57% and -1.17%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Merck. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 moved 4.89% lower. Merck is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 17.57. This valuation marks a premium compared to its industry's average Forward P/E of 14.8.
Meanwhile, MRK's PEG ratio is currently 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Merck (MRK) Dips More Than Broader Markets: What You Should Know
Merck (MRK - Free Report) closed at $114.13 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.97%.
Coming into today, shares of the pharmaceutical company had gained 8.8% in the past month. In that same time, the Medical sector gained 5.81%, while the S&P 500 gained 6.23%.
Wall Street will be looking for positivity from Merck as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $1.36, down 36.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $13.84 billion, down 12.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.54 per share and revenue of $58.59 billion, which would represent changes of -12.57% and -1.17%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Merck. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 moved 4.89% lower. Merck is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 17.57. This valuation marks a premium compared to its industry's average Forward P/E of 14.8.
Meanwhile, MRK's PEG ratio is currently 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.