Merck (MRK) ended the recent trading session at $101.25, demonstrating a +1.5% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.54%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.66%.
Shares of the pharmaceutical company have appreciated by 1.27% over the course of the past month, outperforming the Medical sector's loss of 4.6% and lagging the S&P 500's gain of 1.5%.
Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on February 4, 2025. The company's upcoming EPS is projected at $1.80, signifying a 5900% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.52 billion, indicating a 6.06% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.72 per share and revenue of $64.06 billion. These totals would mark changes of +411.26% and +6.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% downward. Merck currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 12.92. This represents a discount compared to its industry's average Forward P/E of 14.13.
It's also important to note that MRK currently trades at a PEG ratio of 1.44. 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. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.47.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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