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Merck (MRK) closed at $93.77 in the latest trading session, marking a +0.18% move from the prior day. This change outpaced the S&P 500's 0.45% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the pharmaceutical company had gained 10.77% over the past month. This has outpaced the Medical sector's gain of 2.19% and the S&P 500's loss of 1.89% in that time.
Wall Street will be looking for positivity from Merck as it approaches its next earnings report date. This is expected to be July 28, 2022. In that report, analysts expect Merck to post earnings of $1.77 per share. This would mark year-over-year growth of 35.11%. Our most recent consensus estimate is calling for quarterly revenue of $13.86 billion, up 21.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $58.1 billion. These totals would mark changes of +21.43% and +15.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Merck is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 12.8 right now. Its industry sports an average Forward P/E of 12.94, so we one might conclude that Merck is trading at a discount comparatively.
We can also see that MRK currently has a PEG ratio of 1.26. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% 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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