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Merck (MRK) Gains As Market Dips: What You Should Know

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Merck (MRK - Free Report) closed the latest trading day at $120.82, indicating a +0.57% change from the previous session's end. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.

Coming into today, shares of the pharmaceutical company had gained 10.44% in the past month. In that same time, the Medical sector gained 1.45%, while the S&P 500 gained 3.05%.

Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on February 1, 2024. In that report, analysts expect Merck to post earnings of -$0.09 per share. This would mark a year-over-year decline of 105.56%. In the meantime, our current consensus estimate forecasts the revenue to be $14.67 billion, indicating a 6.07% growth compared to the corresponding quarter of 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has shifted 0.15% downward. Merck is currently a Zacks Rank #3 (Hold).

Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 14.15. This indicates a discount in contrast to its industry's Forward P/E of 14.71.

Meanwhile, MRK's PEG ratio is currently 1.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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