Merck (MRK) closed the most recent trading day at $86.39, moving -0.24% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 4.84% for the day. Meanwhile, the Dow lost 3.98%, and the Nasdaq, a tech-heavy index, lost 5.97%.
The the stock of pharmaceutical company has fallen by 7.07% in the past month, lagging the Medical sector's loss of 4.6% and the S&P 500's loss of 4.7%.
Investors will be eagerly watching for the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 24, 2025. The company is predicted to post an EPS of $2.16, indicating a 4.35% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $15.65 billion, down 0.77% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9 per share and a revenue of $65.25 billion, indicating changes of +17.65% and +1.69%, respectively, from the former year.
Any recent changes to analyst estimates for Merck should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Merck presently features a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 9.62. This expresses a discount compared to the average Forward P/E of 13.53 of its industry.
Investors should also note that MRK has a PEG ratio of 0.76 right now. 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. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.33.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Merck & Co., Inc. (MRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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