In the latest trading session, Merck (MRK) closed at $81.77, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.
MRK will be looking to display strength as it nears its next earnings release. In that report, analysts expect MRK to post earnings of $1.08 per share. This would mark a year-over-year decline of 16.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.84 billion, down 7.85% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $5.36 per share and revenue of $47.31 billion. These results would represent year-over-year changes of +3.28% and +0.99%, respectively.
Investors should also note any recent changes to analyst estimates for MRK. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 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 moved 0.09% higher. MRK is currently a Zacks Rank #3 (Hold).
Digging into valuation, MRK currently has a Forward P/E ratio of 15.35. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.35.
Also, we should mention that MRK has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MRK's industry had an average PEG ratio of 2.07 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck Co., Inc. (MRK) : Free Stock Analysis Report
To read this article on Zacks.com click here.