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Merck (MRK) Gains As Market Dips: What You Should Know
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Merck (MRK - Free Report) ended the recent trading session at $125.92, demonstrating a +1.24% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 2.32% for the day. Elsewhere, the Dow saw a downswing of 1.25%, while the tech-heavy Nasdaq depreciated by 3.64%.
The pharmaceutical company's shares have seen a decrease of 6.42% over the last month, not keeping up with the Medical sector's gain of 0.32% and the S&P 500's gain of 1.79%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on July 30, 2024. The company's earnings per share (EPS) are projected to be $2.16, reflecting a 204.85% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.85 billion, indicating a 5.45% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.55 per share and a revenue of $64.49 billion, representing changes of +466.23% and +7.27%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Merck. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.88% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Merck currently has a Forward P/E ratio of 14.55. Its industry sports an average Forward P/E of 15.08, so one might conclude that Merck is trading at a discount comparatively.
It's also important to note that MRK currently trades at a PEG ratio of 1.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.61.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Merck (MRK) Gains As Market Dips: What You Should Know
Merck (MRK - Free Report) ended the recent trading session at $125.92, demonstrating a +1.24% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 2.32% for the day. Elsewhere, the Dow saw a downswing of 1.25%, while the tech-heavy Nasdaq depreciated by 3.64%.
The pharmaceutical company's shares have seen a decrease of 6.42% over the last month, not keeping up with the Medical sector's gain of 0.32% and the S&P 500's gain of 1.79%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on July 30, 2024. The company's earnings per share (EPS) are projected to be $2.16, reflecting a 204.85% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.85 billion, indicating a 5.45% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.55 per share and a revenue of $64.49 billion, representing changes of +466.23% and +7.27%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Merck. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.88% lower. Merck is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Merck currently has a Forward P/E ratio of 14.55. Its industry sports an average Forward P/E of 15.08, so one might conclude that Merck is trading at a discount comparatively.
It's also important to note that MRK currently trades at a PEG ratio of 1.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.61.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.