Merck (MRK) closed the most recent trading day at $106.45, moving +1.13% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%.
The pharmaceutical company's stock has climbed by 4.33% in the past month, exceeding the Medical sector's gain of 0.17% and the S&P 500's gain of 0.54%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on February 3, 2026. The company is forecasted to report an EPS of $2.08, showcasing a 20.93% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $16.18 billion, indicating a 3.56% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.98 per share and revenue of $64.81 billion, which would represent changes of +17.39% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Merck. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.97% decrease. Merck presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Merck has a Forward P/E ratio of 12.57 right now. This expresses a discount compared to the average Forward P/E of 14.5 of its industry.
We can also see that MRK currently has a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.56 at the close of the market yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 105, putting it in the top 43% of all 250+ industries.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Merck & Co., Inc. (MRK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
