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Merck (MRK) Stock Moves -1.2%: What You Should Know

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In the latest trading session, Merck (MRK) closed at $86.63, marking a -1.2% move from the previous day. This change was narrower than the S&P 500's 1.69% loss on the day. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the pharmaceutical company had gained 12.04% in the past month. In that same time, the Medical sector gained 11.33%, while the S&P 500 gained 7.88%.

Investors will be hoping for strength from Merck as it approaches its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $1.85, up 32.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15 billion, up 24.15% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.19 per share and revenue of $57.25 billion. These totals would mark changes of +19.44% and +14.15%, respectively, from last 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, we can interpret positive estimate revisions as a good sign for 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 0.45% lower within the past month. Merck currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 12.19 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.94.

Also, we should mention that MRK has a PEG ratio of 1.42. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.49 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 101, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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