Why Merck (MRK) Outpaced the Stock Market Today

Merck (MRK) closed at $106.45 in the latest trading session, marking a +1.34% move from the prior day. This change outpaced the S&P 500's 0.32% gain on the day. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq appreciated by 0.22%. The pharmaceutical company's stock has dropped by 0.59% in the past month, falling short of the Medical sector's gain of 1.67% and the S&P 500's gain of 4.7%.The upcoming earnings release of Merck will be of great interest to investors. The company's upcoming EPS is projected at $2.08, signifying a 20.93% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.18 billion, showing a 3.56% escalation compared to the year-ago quarter. 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 +1%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Merck. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Merck boasts a Zacks Rank of #3 (Hold). From a valuation perspective, Merck is currently exchanging hands at a Forward P/E ratio of 11.7. For comparison, its industry has an average Forward P/E of 14.45, which means Merck is trading at a discount to the group. We can additionally observe that MRK currently boasts a PEG ratio of 1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 1.64. The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 35% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>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