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Merck (MRK) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, Merck (MRK - Free Report) closed at $120.51, marking a -1.35% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
The the stock of pharmaceutical company has fallen by 2.91% in the past month, lagging the Medical sector's gain of 3.72% and the S&P 500's gain of 4.42%.
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 April 25, 2024. The company's earnings per share (EPS) are projected to be $2.12, reflecting a 51.43% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.32 billion, indicating a 5.75% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and a revenue of $64.05 billion, representing changes of +468.21% and +6.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% lower. Right now, Merck possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 14.24. This signifies no noticeable deviation in comparison to the average Forward P/E of 14.24 for its industry.
We can also see that MRK currently has a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 192, finds itself in the bottom 24% 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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Merck (MRK) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Merck (MRK - Free Report) closed at $120.51, marking a -1.35% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
The the stock of pharmaceutical company has fallen by 2.91% in the past month, lagging the Medical sector's gain of 3.72% and the S&P 500's gain of 4.42%.
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 April 25, 2024. The company's earnings per share (EPS) are projected to be $2.12, reflecting a 51.43% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.32 billion, indicating a 5.75% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and a revenue of $64.05 billion, representing changes of +468.21% and +6.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% lower. Right now, Merck possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 14.24. This signifies no noticeable deviation in comparison to the average Forward P/E of 14.24 for its industry.
We can also see that MRK currently has a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 192, finds itself in the bottom 24% 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.