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Merck (MRK) Gains As Market Dips: What You Should Know
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Merck (MRK - Free Report) closed at $114.60 in the latest trading session, marking a +0.77% move from the prior day. This change outpaced the S&P 500's 0.77% loss on the day. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 2.23%.
Heading into today, shares of the pharmaceutical company had gained 1.26% over the past month, outpacing the Medical sector's gain of 0.41% and lagging the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Merck as it approaches its next earnings release. In that report, analysts expect Merck to post earnings of $1.85 per share. This would mark a year-over-year decline of 1.07%. Meanwhile, our latest consensus estimate is calling for revenue of $14.42 billion, down 1.21% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $6.95 per share and revenue of $58.79 billion. These results would represent year-over-year changes of -7.09% and -0.83%, respectively.
Any recent changes to analyst estimates for Merck should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Merck is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 16.36 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.91.
Investors should also note that MRK has a PEG ratio of 1.98 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.74 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 82, which puts it in the top 33% 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.
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Merck (MRK) Gains As Market Dips: What You Should Know
Merck (MRK - Free Report) closed at $114.60 in the latest trading session, marking a +0.77% move from the prior day. This change outpaced the S&P 500's 0.77% loss on the day. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 2.23%.
Heading into today, shares of the pharmaceutical company had gained 1.26% over the past month, outpacing the Medical sector's gain of 0.41% and lagging the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Merck as it approaches its next earnings release. In that report, analysts expect Merck to post earnings of $1.85 per share. This would mark a year-over-year decline of 1.07%. Meanwhile, our latest consensus estimate is calling for revenue of $14.42 billion, down 1.21% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $6.95 per share and revenue of $58.79 billion. These results would represent year-over-year changes of -7.09% and -0.83%, respectively.
Any recent changes to analyst estimates for Merck should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Merck is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 16.36 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.91.
Investors should also note that MRK has a PEG ratio of 1.98 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.74 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 82, which puts it in the top 33% 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.