Merck (MRK) closed at $98.34 in the latest trading session, marking a -1.72% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.95%. Meanwhile, the Dow lost 2.59%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Prior to today's trading, shares of the pharmaceutical company had gained 3.65% over the past month. This has outpaced the Medical sector's loss of 0.5% and the S&P 500's gain of 3.15% in that time.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.52 billion, up 6.05% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.72 per share and a revenue of $64.06 billion, representing changes of +411.26% and +6.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. 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 12.96. This denotes a discount relative to the industry's average Forward P/E of 14.09.
We can additionally observe that MRK currently boasts 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. The Large Cap Pharmaceuticals industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpMerck & Co., Inc. (MRK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
