Merck (MRK) ended the recent trading session at $86.32, demonstrating a +1.8% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 1.12%, and the technology-centric Nasdaq increased by 1.37%.
Shares of the pharmaceutical company witnessed a gain of 4.02% over the previous month, beating the performance of the Medical sector with its gain of 3%, and the S&P 500's gain of 1.08%.
Analysts and investors alike will be keeping a close eye on the performance of Merck in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2025. The company is expected to report EPS of $2.36, up 50.32% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $17.06 billion, reflecting a 2.44% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.92 per share and a revenue of $64.76 billion, representing changes of +16.6% and +0.93%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Merck currently has a Zacks Rank of #3 (Hold).
Investors should also note Merck's current valuation metrics, including its Forward P/E ratio of 9.5. This indicates a discount in contrast to its industry's Forward P/E of 14.56.
Meanwhile, MRK's PEG ratio is currently 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Large Cap Pharmaceuticals industry held an average PEG ratio of 1.6.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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