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Merck (MRK) Gains As Market Dips: What You Should Know
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In the latest trading session, Merck (MRK - Free Report) closed at $80.88, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.05%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the pharmaceutical company had gained 17.24% over the past month. This has lagged the Medical sector's gain of 24.11% and the S&P 500's gain of 21.82% in that time.
Wall Street will be looking for positivity from MRK as it approaches its next earnings report date. This is expected to be April 28, 2020. In that report, analysts expect MRK to post earnings of $1.39 per share. This would mark year-over-year growth of 13.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.81 billion, up 9.19% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $5.66 per share and revenue of $48.78 billion. These results would represent year-over-year changes of +9.06% and +4.13%, respectively.
Investors should also note any recent changes to analyst estimates for MRK. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. MRK currently has a Zacks Rank of #3 (Hold).
Investors should also note MRK's current valuation metrics, including its Forward P/E ratio of 14.14. This valuation marks a discount compared to its industry's average Forward P/E of 14.5.
Also, we should mention that MRK has a PEG ratio of 2.08. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.
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Merck (MRK) Gains As Market Dips: What You Should Know
In the latest trading session, Merck (MRK - Free Report) closed at $80.88, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.05%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the pharmaceutical company had gained 17.24% over the past month. This has lagged the Medical sector's gain of 24.11% and the S&P 500's gain of 21.82% in that time.
Wall Street will be looking for positivity from MRK as it approaches its next earnings report date. This is expected to be April 28, 2020. In that report, analysts expect MRK to post earnings of $1.39 per share. This would mark year-over-year growth of 13.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.81 billion, up 9.19% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $5.66 per share and revenue of $48.78 billion. These results would represent year-over-year changes of +9.06% and +4.13%, respectively.
Investors should also note any recent changes to analyst estimates for MRK. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. MRK currently has a Zacks Rank of #3 (Hold).
Investors should also note MRK's current valuation metrics, including its Forward P/E ratio of 14.14. This valuation marks a discount compared to its industry's average Forward P/E of 14.5.
Also, we should mention that MRK has a PEG ratio of 2.08. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.