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Merck (MRK) Outpaces Stock Market Gains: What You Should Know
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Merck (MRK - Free Report) closed at $109.84 in the latest trading session, marking a +0.79% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the pharmaceutical company had gained 3.07% over the past month. This has outpaced the Medical sector's loss of 0.91% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from Merck as it approaches its next earnings report date. The company is expected to report EPS of $1.95, up 5.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 2.37% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $3.01 per share and revenue of $59.57 billion. These results would represent year-over-year changes of -59.76% and +0.48%, respectively.
It is also important to note the recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. Merck is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 36.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.
Meanwhile, MRK's PEG ratio is currently 4.38. 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 industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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) Outpaces Stock Market Gains: What You Should Know
Merck (MRK - Free Report) closed at $109.84 in the latest trading session, marking a +0.79% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Prior to today's trading, shares of the pharmaceutical company had gained 3.07% over the past month. This has outpaced the Medical sector's loss of 0.91% and the S&P 500's loss of 1.63% in that time.
Wall Street will be looking for positivity from Merck as it approaches its next earnings report date. The company is expected to report EPS of $1.95, up 5.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.31 billion, up 2.37% from the prior-year quarter.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $3.01 per share and revenue of $59.57 billion. These results would represent year-over-year changes of -59.76% and +0.48%, respectively.
It is also important to note the recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.51% lower within the past month. Merck is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 36.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.73.
Meanwhile, MRK's PEG ratio is currently 4.38. 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 industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.