Merck (MRK) closed at $73.36 in the latest trading session, marking a -0.34% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day.
Heading into today, shares of the pharmaceutical company had lost 3.53% over the past month, lagging the Medical sector's loss of 2.31% and the S&P 500's loss of 0.56% in that time.
MRK will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2021. On that day, MRK is projected to report earnings of $1.52 per share, which would represent a year-over-year decline of 12.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.43 billion, down 0.94% from the year-ago period.
MRK's full-year Zacks Consensus Estimates are calling for earnings of $5.51 per share and revenue of $47.03 billion. These results would represent year-over-year changes of -7.24% and -2.02%, respectively.
It is also important to note the recent changes to analyst estimates for MRK. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. MRK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MRK has a Forward P/E ratio of 13.35 right now. For comparison, its industry has an average Forward P/E of 13.28, which means MRK is trading at a premium to the group.
Meanwhile, MRK's PEG ratio is currently 2.16. 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 currently had an average PEG ratio of 2.02 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Merck & Co., Inc. (MRK): Free Stock Analysis Report
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