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Merck (MRK) Advances While Market Declines: Some Information for Investors
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In the latest market close, Merck (MRK - Free Report) reached $106.64, with a +0.28% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.
The pharmaceutical company's stock has dropped by 8.03% in the past month, falling short of the Medical sector's loss of 4.16% and the S&P 500's gain of 2.76%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2024. On that day, Merck is projected to report earnings of $1.56 per share, which would represent a year-over-year decline of 26.76%. Our most recent consensus estimate is calling for quarterly revenue of $16.51 billion, up 3.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.82 per share and a revenue of $64.13 billion, demonstrating changes of +417.88% and +6.67%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 2.3% fall in the Zacks Consensus EPS estimate. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 13.59. This represents a discount compared to its industry's average Forward P/E of 15.88.
We can additionally observe that MRK currently boasts a PEG ratio of 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.61 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 12% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Merck (MRK) Advances While Market Declines: Some Information for Investors
In the latest market close, Merck (MRK - Free Report) reached $106.64, with a +0.28% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.05%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.
The pharmaceutical company's stock has dropped by 8.03% in the past month, falling short of the Medical sector's loss of 4.16% and the S&P 500's gain of 2.76%.
The investment community will be closely monitoring the performance of Merck in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2024. On that day, Merck is projected to report earnings of $1.56 per share, which would represent a year-over-year decline of 26.76%. Our most recent consensus estimate is calling for quarterly revenue of $16.51 billion, up 3.43% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.82 per share and a revenue of $64.13 billion, demonstrating changes of +417.88% and +6.67%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 2.3% fall in the Zacks Consensus EPS estimate. Merck is currently a Zacks Rank #3 (Hold).
In terms of valuation, Merck is currently trading at a Forward P/E ratio of 13.59. This represents a discount compared to its industry's average Forward P/E of 15.88.
We can additionally observe that MRK currently boasts a PEG ratio of 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.61 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 12% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.