Merck (MRK) Stock Drops Despite Market Gains: Important Facts to Note

The most recent trading session ended with Merck (MRK) standing at $93.43, reflecting a -1.37% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.49%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 1.22%.The pharmaceutical company's stock has climbed by 9.46% in the past month, exceeding the Medical sector's loss of 1.05% and the S&P 500's loss of 8.15%.The upcoming earnings release of Merck will be of great interest to investors. 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 $15.75 billion, down 0.16% from the year-ago period.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.01 per share and a revenue of $65.19 billion, representing changes of +17.78% and +1.6%, respectively, from the prior year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Merck. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. As of now, Merck holds a Zacks Rank of #4 (Sell).Looking at valuation, Merck is presently trading at a Forward P/E ratio of 10.52. This represents a discount compared to its industry's average Forward P/E of 14.41.One should further note that MRK currently holds a PEG ratio of 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.32.The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks