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Why the Market Dipped But Merck (MRK) Gained Today
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The latest trading session saw Merck (MRK - Free Report) ending at $114.77, denoting a +1.35% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.8%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
Coming into today, shares of the pharmaceutical company had gained 6.6% in the past month. In that same time, the Medical sector gained 5.8%, while the S&P 500 gained 3.4%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is scheduled to release its earnings on February 1, 2024. The company's earnings per share (EPS) are projected to be -$0.10, reflecting a 106.17% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.61 billion, up 5.65% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 13.32. This indicates a discount in contrast to its industry's Forward P/E of 14.03.
One should further note that MRK currently holds a PEG ratio of 1.54. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.9.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Merck (MRK) Gained Today
The latest trading session saw Merck (MRK - Free Report) ending at $114.77, denoting a +1.35% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.8%. On the other hand, the Dow registered a loss of 0.76%, and the technology-centric Nasdaq decreased by 1.18%.
Coming into today, shares of the pharmaceutical company had gained 6.6% in the past month. In that same time, the Medical sector gained 5.8%, while the S&P 500 gained 3.4%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is scheduled to release its earnings on February 1, 2024. The company's earnings per share (EPS) are projected to be -$0.10, reflecting a 106.17% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $14.61 billion, up 5.65% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Merck is holding a Forward P/E ratio of 13.32. This indicates a discount in contrast to its industry's Forward P/E of 14.03.
One should further note that MRK currently holds a PEG ratio of 1.54. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.9.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.