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Merck (MRK - Free Report) closed the most recent trading day at $119.43, moving +0.45% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.32%.
Heading into today, shares of the pharmaceutical company had gained 10.39% over the past month, outpacing the Medical sector's gain of 2.3% and the S&P 500's gain of 1.61% in that time.
The investment community will be paying close attention to the earnings performance of Merck in its upcoming release. The company is slated to reveal its earnings on February 1, 2024. It is anticipated that the company will report an EPS of -$0.09, marking a 105.56% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.67 billion, reflecting a 6.07% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 14. This signifies a discount in comparison to the average Forward P/E of 14.72 for its industry.
We can additionally observe that MRK currently boasts a PEG ratio of 1.62. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.82 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Laps the Stock Market: Here's Why
Merck (MRK - Free Report) closed the most recent trading day at $119.43, moving +0.45% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.32%.
Heading into today, shares of the pharmaceutical company had gained 10.39% over the past month, outpacing the Medical sector's gain of 2.3% and the S&P 500's gain of 1.61% in that time.
The investment community will be paying close attention to the earnings performance of Merck in its upcoming release. The company is slated to reveal its earnings on February 1, 2024. It is anticipated that the company will report an EPS of -$0.09, marking a 105.56% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $14.67 billion, reflecting a 6.07% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 14. This signifies a discount in comparison to the average Forward P/E of 14.72 for its industry.
We can additionally observe that MRK currently boasts a PEG ratio of 1.62. 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 average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.82 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.