Merck Company Stock Buy Hold or Sell Recommendation
| MRK Stock | USD 125.23 0.14 0.11% |
Considering the 90-day investment horizon and your below-average risk tolerance, our recommendation regarding Merck Company is 'Strong Hold'. Macroaxis provides Merck buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Merck positions. The advice algorithm takes into account all of Merck's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Merck's buy or sell advice are summarized below:
Real Value 121.16 | Target Price 117.2 | Hype Value 125.19 | Market Value 125.23 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Merck Company given historical horizon and risk tolerance towards Merck. When Macroaxis issues a 'buy' or 'sell' recommendation for Merck Company, the advice is generated through an automated system that utilizes algorithms and statistical models.
Merck |
Execute Merck Buy or Sell Advice
The Merck recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Merck Company. Macroaxis does not own or have any residual interests in Merck Company or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Merck's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Merck Trading Alerts and Improvement Suggestions
| Merck Company has a strong financial position based on the latest SEC filings | |
| Over 79.0% of the company shares are owned by institutional investors | |
| On 5th of April 2024 Merck paid $ 0.77 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Disposition of 6224 shares by Smart Dalton of Merck at 117.89 subject to Rule 16b-3 |
Merck Returns Distribution Density
The distribution of Merck's historical returns is an attempt to chart the uncertainty of Merck's future price movements. The chart of the probability distribution of Merck daily returns describes the distribution of returns around its average expected value. We use Merck Company price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Merck returns is essential to provide solid investment advice for Merck.
| Mean Return | 0.1 | Value At Risk | -0.98 | Potential Upside | 1.18 | Standard Deviation | 1.07 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Merck historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Merck Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Merck is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Merck Company backward and forwards among themselves. Merck's institutional investor refers to the entity that pools money to purchase Merck's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2023-12-31 | 28.5 M | Jpmorgan Chase & Co | 2023-12-31 | 25.4 M | Goldman Sachs Group Inc | 2023-12-31 | 24.2 M | Legal & General Group Plc | 2023-12-31 | 23.5 M | Deutsche Bank Ag | 2023-12-31 | 21.6 M | Bank Of New York Mellon Corp | 2023-12-31 | 20.8 M | Amvescap Plc. | 2023-12-31 | 16.8 M | Nuveen Asset Management, Llc | 2023-12-31 | 16.7 M | Ameriprise Financial Inc | 2023-12-31 | 16.4 M | Vanguard Group Inc | 2023-12-31 | 244.8 M | Blackrock Inc | 2023-12-31 | 201.8 M |
Merck Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (508M) | (855M) | (674M) | (161M) | (816M) | (775.2M) | |
| Change In Cash | 2.0B | (1.8B) | 14M | 4.6B | (5.9B) | (5.6B) | |
| Free Cash Flow | 10.0B | 5.6B | 9.7B | 14.7B | 9.1B | 6.7B | |
| Depreciation | 3.7B | 3.6B | 3.2B | 3.9B | 3.9B | 3.1B | |
| Other Non Cash Items | 2.2B | 4.3B | 1.7B | 4.5B | 12.2B | 12.8B | |
| Dividends Paid | 5.7B | 6.2B | 6.6B | 7.0B | (7.4B) | (7.1B) | |
| Capital Expenditures | 3.5B | 4.7B | 4.4B | 4.4B | 3.9B | 2.2B | |
| Net Income | 9.8B | 7.1B | 12.4B | 14.5B | 365M | 346.8M | |
| End Period Cash Flow | 9.9B | 8.2B | 8.2B | 12.8B | 6.9B | 6.2B | |
| Change To Netincome | 2.1B | 1.5B | 2.8B | 2.0B | 2.3B | 2.4B | |
| Investments | 5.4B | 1.7B | 1.0B | (483M) | (15.9B) | (15.1B) | |
| Change Receivables | 294M | (1.0B) | (2.0B) | (644M) | (579.6M) | (550.6M) | |
| Net Borrowings | 1.2B | 5.0B | 1.6B | (2.3B) | (2.0B) | (1.9B) |
Merck Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Merck or Pharmaceuticals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Merck's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Merck stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | 0.04 | |
β | Beta against NYSE Composite | 0.85 | |
σ | Overall volatility | 1.10 | |
Ir | Information ratio | 0.03 |
Merck Volatility Alert
Merck Company exhibits relatively low volatility with skewness of 2.42 and kurtosis of 10.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Merck's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Merck's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Merck Implied Volatility
Merck's implied volatility exposes the market's sentiment of Merck Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Merck's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Merck stock will not fluctuate a lot when Merck's options are near their expiration.
Merck Fundamentals Vs Peers
Comparing Merck's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Merck's direct or indirect competition across all of the common fundamentals between Merck and the related equities. This way, we can detect undervalued stocks with similar characteristics as Merck or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Merck's fundamental indicators could also be used in its relative valuation, which is a method of valuing Merck by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Merck to competition |
| Fundamentals | Merck | Peer Average |
| Return On Equity | 0.009 | -0.31 |
| Return On Asset | 0.0264 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.0008 % | (5.51) % |
| Current Valuation | 345.96 B | 16.62 B |
| Shares Outstanding | 2.53 B | 571.82 M |
| Shares Owned By Insiders | 0.04 % | 10.09 % |
| Shares Owned By Institutions | 78.56 % | 39.21 % |
| Number Of Shares Shorted | 19.59 M | 4.71 M |
| Price To Earning | 18.05 X | 28.72 X |
| Price To Book | 8.48 X | 9.51 X |
| Price To Sales | 5.30 X | 11.42 X |
| Revenue | 59.87 B | 9.43 B |
| Gross Profit | 42.08 B | 27.38 B |
| EBITDA | 6.85 B | 3.9 B |
| Net Income | 365 M | 570.98 M |
| Cash And Equivalents | 12.69 B | 2.7 B |
| Cash Per Share | 4.44 X | 5.01 X |
| Total Debt | 36.27 B | 5.32 B |
| Debt To Equity | 0.68 % | 48.70 % |
| Current Ratio | 1.46 X | 2.16 X |
| Book Value Per Share | 14.85 X | 1.93 K |
| Cash Flow From Operations | 13.01 B | 971.22 M |
| Short Ratio | 1.77 X | 4.00 X |
| Earnings Per Share | 0.14 X | 3.12 X |
| Price To Earnings To Growth | 0.10 X | 4.89 X |
| Target Price | 137.02 | |
| Number Of Employees | 70 K | 18.84 K |
| Beta | 0.4 | -0.15 |
| Market Capitalization | 316.78 B | 19.03 B |
| Total Asset | 106.67 B | 29.47 B |
| Retained Earnings | 53.9 B | 9.33 B |
| Working Capital | 6.47 B | 1.48 B |
Note: Disposition of 6224 shares by Smart Dalton of Merck at 117.89 subject to Rule 16b-3 [view details]
Merck Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Merck . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 48629.22 | |||
| Daily Balance Of Power | (0.14) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 125.01 | |||
| Day Typical Price | 125.08 | |||
| Price Action Indicator | 0.15 | |||
| Period Momentum Indicator | (0.14) | |||
| Relative Strength Index | 56.5 |
About Merck Buy or Sell Advice
When is the right time to buy or sell Merck Company? Buying financial instruments such as Merck Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 33.1B | 30.7B | 36.3B | 38.1B | Total Assets | 105.7B | 109.2B | 106.7B | 60.3B |
Use Investing Ideas to Build Portfolios
In addition to having Merck in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fabricated Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Fabricated Products theme has 11 constituents at this time.
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Complementary Tools for Merck Stock analysis
When running Merck's price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.453 | Dividend Share 2.92 | Earnings Share 0.14 | Revenue Per Share 23.695 | Quarterly Revenue Growth 0.058 |
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.