Merck (MRK) closed at $96.24 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 0.65%.
The the stock of pharmaceutical company has fallen by 1.46% in the past month, lagging the Medical sector's loss of 0.32% and the S&P 500's gain of 1.17%.
Investors will be eagerly watching for the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 4, 2025. The company is predicted to post an EPS of $1.76, indicating a 5766.67% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.58 billion, indicating a 6.52% increase compared to the same quarter of the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.32% lower. As of now, Merck holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Merck is currently exchanging hands at a Forward P/E ratio of 10.37. This valuation marks a discount compared to its industry's average Forward P/E of 12.73.
Investors should also note that MRK has a PEG ratio of 1.15 right now. 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 1.3.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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