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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
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The most recent trading session ended with Merck (MRK - Free Report) standing at $103.75, reflecting a -0.13% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
Heading into today, shares of the pharmaceutical company had gained 1.47% over the past month, lagging the Medical sector's gain of 2.55% and the S&P 500's gain of 4.91% in that time.
Market participants will be closely following the financial results of Merck in its upcoming release. In that report, analysts expect Merck to post earnings of $0.15 per share. This would mark a year-over-year decline of 90.74%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.61 billion, indicating a 5.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.70 per share and a revenue of $60.01 billion, representing changes of -77.27% and +1.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% downward. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 61.2. This indicates a premium in contrast to its industry's Forward P/E of 15.44.
One should further note that MRK currently holds a PEG ratio of 7.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Merck (MRK) Stock Sinks As Market Gains: What You Should Know
The most recent trading session ended with Merck (MRK - Free Report) standing at $103.75, reflecting a -0.13% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
Heading into today, shares of the pharmaceutical company had gained 1.47% over the past month, lagging the Medical sector's gain of 2.55% and the S&P 500's gain of 4.91% in that time.
Market participants will be closely following the financial results of Merck in its upcoming release. In that report, analysts expect Merck to post earnings of $0.15 per share. This would mark a year-over-year decline of 90.74%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.61 billion, indicating a 5.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.70 per share and a revenue of $60.01 billion, representing changes of -77.27% and +1.22%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Merck. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% downward. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 61.2. This indicates a premium in contrast to its industry's Forward P/E of 15.44.
One should further note that MRK currently holds a PEG ratio of 7.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.