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Merck (MRK) closed at $88 in the latest trading session, marking a -1.65% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.38%. Meanwhile, the Dow lost 1.94%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the pharmaceutical company had gained 0.33% over the past month. This has lagged the Medical sector's gain of 1.41% and outpaced the S&P 500's loss of 0.07% 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. On that day, Merck is projected to report earnings of $1.69 per share, which would represent year-over-year growth of 29.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.85 billion, up 21.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.28 per share and revenue of $57.99 billion, which would represent changes of +20.93% and +15.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Merck should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Merck is currently a Zacks Rank #3 (Hold).
Digging into valuation, Merck currently has a Forward P/E ratio of 12.29. Its industry sports an average Forward P/E of 13.36, so we one might conclude that Merck is trading at a discount comparatively.
Meanwhile, MRK's PEG ratio is currently 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MRK's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% 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.
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Merck & Co., Inc. (MRK) : Free Stock Analysis Report
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