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Merck (MRK) closed at $79.17 in the latest trading session, marking a -0.01% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.
The the stock of pharmaceutical company has fallen by 16.27% in the past month, lagging the Medical sector's loss of 8.97% and the S&P 500's loss of 3.56%.
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 April 24, 2025. The company is expected to report EPS of $2.16, up 4.35% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $15.48 billion, indicating a 1.85% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.96 per share and a revenue of $64.99 billion, indicating changes of +17.12% and +1.27%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.53% fall in the Zacks Consensus EPS estimate. Merck currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Merck is presently trading at a Forward P/E ratio of 8.84. This represents a discount compared to its industry's average Forward P/E of 13.03.
Meanwhile, MRK's PEG ratio is currently 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.