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Here's Why Merck (MRK) Gained But Lagged the Market Today
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In the latest market close, Merck (MRK - Free Report) reached $115.25, with a +0.47% movement compared to the previous day. This change lagged the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.
Shares of the pharmaceutical company have appreciated by 0.99% over the course of the past month, underperforming the Medical sector's gain of 3.55% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Merck in its upcoming release. The company's earnings per share (EPS) are projected to be $1.77, reflecting a 16.9% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.48 billion, indicating a 3.24% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.07 per share and a revenue of $64.14 billion, indicating changes of +434.44% and +6.69%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Merck is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 14.22 right now. Its industry sports an average Forward P/E of 15.91, so one might conclude that Merck is trading at a discount comparatively.
We can additionally observe that MRK currently boasts a PEG ratio of 1.58. 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 of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.66.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why Merck (MRK) Gained But Lagged the Market Today
In the latest market close, Merck (MRK - Free Report) reached $115.25, with a +0.47% movement compared to the previous day. This change lagged the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.
Shares of the pharmaceutical company have appreciated by 0.99% over the course of the past month, underperforming the Medical sector's gain of 3.55% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Merck in its upcoming release. The company's earnings per share (EPS) are projected to be $1.77, reflecting a 16.9% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.48 billion, indicating a 3.24% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.07 per share and a revenue of $64.14 billion, indicating changes of +434.44% and +6.69%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Merck is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 14.22 right now. Its industry sports an average Forward P/E of 15.91, so one might conclude that Merck is trading at a discount comparatively.
We can additionally observe that MRK currently boasts a PEG ratio of 1.58. 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 of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.66.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 24, placing it within the top 10% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.