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Merck (MRK) Stock Moves -0.13%: What You Should Know

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The most recent trading session ended with Merck (MRK - Free Report) standing at $98.82, reflecting a -0.13% shift from the previouse trading day's closing. This move was narrower than the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.28%.

The pharmaceutical company's shares have seen a decrease of 0.22% over the last month, not keeping up with the Medical sector's gain of 7.83% and the S&P 500's gain of 2.87%.

Market participants will be closely following the financial results of Merck in its upcoming release. The company plans to announce its earnings on February 4, 2025. In that report, analysts expect Merck to post earnings of $1.69 per share. This would mark year-over-year growth of 5533.33%. Simultaneously, our latest consensus estimate expects the revenue to be $15.56 billion, showing a 6.35% escalation compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has shifted 4.01% downward. Merck is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Merck is currently being traded at a Forward P/E ratio of 10.77. This valuation marks a discount compared to its industry's average Forward P/E of 13.25.

Investors should also note that MRK has a PEG ratio of 1.2 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.39 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 189, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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