Merck (MRK) ended the recent trading session at $99.72, demonstrating a +0.59% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on February 4, 2025. In that report, analysts expect Merck to post earnings of $1.80 per share. This would mark year-over-year growth of 5900%. Our most recent consensus estimate is calling for quarterly revenue of $15.52 billion, up 6.05% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.71% increase. Merck is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Merck is presently being traded at a Forward P/E ratio of 10.36. This represents a discount compared to its industry's average Forward P/E of 12.82.
It is also worth noting that MRK currently has a PEG ratio of 1.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 44% 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.
To follow MRK in the coming trading sessions, be sure to utilize Zacks.com.
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Merck & Co., Inc. (MRK) : Free Stock Analysis Report
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