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Merck (MRK) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Merck (MRK - Free Report) ending at $100.43, denoting a -1.53% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.
Coming into today, shares of the pharmaceutical company had lost 4.96% in the past month. In that same time, the Medical sector lost 3.49%, while the S&P 500 lost 3.02%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on October 26, 2023. It is anticipated that the company will report an EPS of $1.94, marking a 4.86% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.35 billion, indicating a 2.61% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $59.55 billion, which would represent changes of -59.49% and +0.45%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 witnessed an unchanged state. Right now, Merck possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 33.65. This indicates a premium in contrast to its industry's Forward P/E of 14.33.
It is also worth noting that MRK currently has a PEG ratio of 3.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MRK's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Merck (MRK - Free Report) ending at $100.43, denoting a -1.53% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.
Coming into today, shares of the pharmaceutical company had lost 4.96% in the past month. In that same time, the Medical sector lost 3.49%, while the S&P 500 lost 3.02%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on October 26, 2023. It is anticipated that the company will report an EPS of $1.94, marking a 4.86% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.35 billion, indicating a 2.61% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and revenue of $59.55 billion, which would represent changes of -59.49% and +0.45%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 witnessed an unchanged state. Right now, Merck possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 33.65. This indicates a premium in contrast to its industry's Forward P/E of 14.33.
It is also worth noting that MRK currently has a PEG ratio of 3.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MRK's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.