Merck (MRK) Rises Higher Than Market: Key Facts

In the latest close session, Merck (MRK) was up +2.88% at $83.71. The stock outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 0.95%. Shares of the pharmaceutical company witnessed a gain of 0.02% over the previous month, beating the performance of the Medical sector with its loss of 0.67%, and underperforming the S&P 500's gain of 3.85%.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 July 29, 2025. In that report, analysts expect Merck to post earnings of $2.04 per share. This would mark a year-over-year decline of 10.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.68 billion, down 2.65% from the year-ago period. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.91 per share and revenue of $64.79 billion, indicating changes of +16.47% and +0.96%, respectively, compared to the previous year. Investors should also pay attention to any latest changes in analyst estimates for Merck. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% downward. Right now, Merck possesses a Zacks Rank of #3 (Hold). Digging into valuation, Merck currently has a Forward P/E ratio of 9.13. This valuation marks a discount compared to its industry average Forward P/E of 13.73. We can also see that MRK currently has a PEG ratio of 0.84. 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 the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.24. The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow MRK in the coming trading sessions, be sure to utilize Zacks.com. Should You Invest in Merck & Co., Inc. (MRK)?Before you invest in Merck & Co., Inc. (MRK), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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