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Merck (MRK) Stock Sinks As Market Gains: Here's Why
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The most recent trading session ended with Merck (MRK - Free Report) standing at $125.69, reflecting a -0.06% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.
The the stock of pharmaceutical company has fallen by 3.79% in the past month, lagging the Medical sector's gain of 0.31% and the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Merck in its upcoming release. The company plans to announce its earnings on July 30, 2024. In that report, analysts expect Merck to post earnings of $2.15 per share. This would mark year-over-year growth of 204.37%. In the meantime, our current consensus estimate forecasts the revenue to be $15.88 billion, indicating a 5.59% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $64.48 billion, which would represent changes of +469.54% and +7.27%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions help to show the ever-changing nature 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 14.63. This indicates a discount in contrast to its industry's Forward P/E of 15.36.
Meanwhile, MRK's PEG ratio is currently 1.63. 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 had an average PEG ratio of 1.75 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 29% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Merck (MRK) Stock Sinks As Market Gains: Here's Why
The most recent trading session ended with Merck (MRK - Free Report) standing at $125.69, reflecting a -0.06% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 1.58%.
The the stock of pharmaceutical company has fallen by 3.79% in the past month, lagging the Medical sector's gain of 0.31% and the S&P 500's gain of 0.43%.
Market participants will be closely following the financial results of Merck in its upcoming release. The company plans to announce its earnings on July 30, 2024. In that report, analysts expect Merck to post earnings of $2.15 per share. This would mark year-over-year growth of 204.37%. In the meantime, our current consensus estimate forecasts the revenue to be $15.88 billion, indicating a 5.59% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.60 per share and revenue of $64.48 billion, which would represent changes of +469.54% and +7.27%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions help to show the ever-changing nature 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 14.63. This indicates a discount in contrast to its industry's Forward P/E of 15.36.
Meanwhile, MRK's PEG ratio is currently 1.63. 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 had an average PEG ratio of 1.75 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 29% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.