Is Merck Stock a Good Investment?
Merck Investment Advice | MRK |
- Examine Merck's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Merck's leadership team and their track record. Good management can help Merck navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Merck's business and its evolving consumer preferences.
- Compare Merck's performance and market position to its competitors. Analyze how Merck is positioned in terms of product offerings, innovation, and market share.
- Check if Merck pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Merck's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Merck Company stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Merck Company is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Merck Stock
Researching Merck's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 80.0% of the company shares are owned by institutional investors. The book value of Merck was now reported as 18.32. The company has Price/Earnings To Growth (PEG) ratio of 0.77. Merck Company recorded earning per share (EPS) of 6.88. The entity last dividend was issued on the 28th of December 2021. The firm had 1048:1000 split on the 25th of August 2021.
To determine if Merck is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Merck's research are outlined below:
| Merck Company generated a negative expected return over the last 90 days | |
| Over 80.0% of the company shares are owned by institutional investors | |
| On 7th of April 2025 Merck paid $ 0.81 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Mercks Keytruda Gains as Akeso and Summit Struggle with Survival Data BNTX Stock News |
Merck Quarterly Cash And Short Term Investments |
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Merck uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Merck Company. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Merck's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 6th of August 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 6th of February 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Merck's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Merck's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2010-05-04 | 2010-03-31 | 0.75 | 0.83 | 0.08 | 10 | ||
2006-07-24 | 2006-06-30 | 0.65 | 0.73 | 0.08 | 12 | ||
2014-04-29 | 2014-03-31 | 0.79 | 0.88 | 0.09 | 11 | ||
2015-04-28 | 2015-03-31 | 0.75 | 0.85 | 0.1 | 13 | ||
2007-07-23 | 2007-06-30 | 0.72 | 0.82 | 0.1 | 13 | ||
2004-10-21 | 2004-09-30 | 0.71 | 0.6 | -0.11 | 15 | ||
2009-02-03 | 2008-12-31 | 0.74 | 0.87 | 0.13 | 17 | ||
2024-02-01 | 2023-12-31 | -0.11 | 0.03 | 0.14 | 127 |
Merck Target Price Consensus
Merck target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Merck's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 26 | Buy |
Most Merck analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Merck stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Merck Company, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMerck Target Price Projection
Merck's current and average target prices are 85.20 and 108.19, respectively. The current price of Merck is the price at which Merck Company is currently trading. On the other hand, Merck's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Merck Target Price
Merck Analyst Ratings
Merck's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Merck stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Merck's financials, market performance, and future outlook by experienced professionals. Merck's historical ratings below, therefore, can serve as a valuable tool for investors.Know Merck's Top 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 originate 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 | Bank Of New York Mellon Corp | 2021-11-18 | 24.2 M | Ubs Asset Mgmt Americas Inc | 2021-11-18 | 21.5 M | Charles Schwab Investment Management Inc | 2021-11-18 | 20.1 M | Franklin Resources Inc | 2021-11-18 | 19.9 M | Legal & General Group Plc | 2021-11-18 | 19.5 M | Deutsche Bank Ag | 2021-11-18 | 19.2 M | Royal Bank Of Canada | 2021-11-18 | 18.4 M | Ubs Group Ag | 2021-11-18 | 17.3 M | Goldman Sachs Group Inc | 2021-11-18 | 17.1 M | Vanguard Group Inc | 2021-11-18 | 251.1 M | Blackrock Inc | 2021-11-18 | 222.1 M |
Merck's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 213.16 B.Merck's profitablity analysis
The company has Net Profit Margin of 0.27 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.39 %, which entails that for every 100 dollars of revenue, it generated $0.39 of operating income.Determining Merck's profitability involves analyzing its financial statements and using various financial metrics to determine if Merck is a good buy. For example, gross profit margin measures Merck's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Merck's profitability and make more informed investment decisions.
Merck's Earnings Breakdown by Geography
Evaluate Merck's management efficiency
Merck Company has Return on Asset of 0.139 % which means that on every $100 spent on assets, it made $0.139 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4079 %, implying that it generated $0.4079 on every 100 dollars invested. Merck's management efficiency ratios could be used to measure how well Merck manages its routine affairs as well as how well it operates its assets and liabilities.The strategic initiatives led by Merck's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.0382 | Forward Dividend Yield 0.0382 | Forward Dividend Rate 3.24 | Beta 0.416 |
Basic technical analysis of Merck Stock
As of the 30th of April, Merck secures the Mean Deviation of 1.48, risk adjusted performance of (0.13), and Standard Deviation of 2.14. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Merck Company, as well as the relationship between them.Merck's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Merck insiders, such as employees or executives, is commonly permitted as long as it does not rely on Merck's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Merck insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Chirfi Guindo over three months ago Acquisition by Chirfi Guindo of 28158 shares of Merck at 97.94 subject to Rule 16b-3 | ||
Smart Dalton over six months ago Disposition of 612 shares by Smart Dalton of Merck subject to Rule 16b-3 | ||
Smart Dalton over six months ago Disposition of 381 shares by Smart Dalton of Merck subject to Rule 16b-3 | ||
Smart Dalton over a year ago Disposition of 6224 shares by Smart Dalton of Merck at 117.89 subject to Rule 16b-3 | ||
Smart Dalton over a year ago Disposition of 6224 shares by Smart Dalton of Merck at 117.89 subject to Rule 16b-3 | ||
Peter Wendell over a year ago Merck exotic insider transaction detected | ||
Peter Wendell over a year ago Acquisition by Peter Wendell of 270 shares of Merck subject to Rule 16b-3 |
Merck's Outstanding Corporate Bonds
Merck issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Merck Company uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Merck bonds can be classified according to their maturity, which is the date when Merck Company has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MERCK INC 36 Corp BondUS589331AS67 | View | |
| MRK 29 10 DEC 61 Corp BondUS58933YBG98 | View | |
| MERCK INC 595 Corp BondUS589331AE71 | View | |
| MERCK INC Corp BondUS58933YAZ88 | View | |
| MERCK INC 63 Corp BondUS589331AC16 | View | |
| MERCK INC 64 Corp BondUS589331AD98 | View | |
| MERCK INC Corp BondUS58933YAY14 | View | |
| MERCK INC Corp BondUS58933YAX31 | View |
Understand Merck's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Merck's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 1.48 | |||
| Coefficient Of Variation | (1,223) | |||
| Standard Deviation | 2.14 | |||
| Variance | 4.57 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 10.07 | |||
| Value At Risk | (4.81) | |||
| Potential Upside | 2.43 | |||
| Skewness | (1.51) | |||
| Kurtosis | 4.37 |
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 1.48 | |||
| Coefficient Of Variation | (1,223) | |||
| Standard Deviation | 2.14 | |||
| Variance | 4.57 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0) | |||
| Treynor Ratio | (0.42) | |||
| Maximum Drawdown | 10.07 | |||
| Value At Risk | (4.81) | |||
| Potential Upside | 2.43 | |||
| Skewness | (1.51) | |||
| Kurtosis | 4.37 |
Consider Merck's intraday indicators
Merck intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Merck stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Merck Corporate Filings
Merck time-series forecasting models is one of many Merck's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Merck's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.Merck Stock media impact
There is far too much social signal, news, headlines, and media speculation about Merck that are available to investors today. This information is accessible both publicly - through Merck's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Merck-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Merck news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Merck relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Merck's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Merck alpha.
Merck Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Merck can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Merck Company Historical Investor Sentiment
Investor biases related to Merck's public news can be used to forecast risks associated with an investment in Merck. The trend in average sentiment can be used to explain how an investor holding Merck can time the market purely based on public headlines and social activities around Merck Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Merck's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Merck and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Merck news discussions. The higher the estimate score, the more favorable the investor's outlook on Merck.
Merck Maximum Pain Price Across July 18th 2025 Option Contracts
Merck's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Merck close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Merck's options.
Merck Corporate Directors
| Thomas Glocer | Lead Independent Director | Profile | |
| Christine Seidman | Independent Director | Profile | |
| Kathy Warden | Independent Director | Profile | |
| Paul Rothman | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Pharmaceuticals space 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 0.073 | Dividend Share 3.12 | Earnings Share 6.88 | Revenue Per Share 25.278 | Quarterly Revenue Growth (0.02) |
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.
In summary, please note that there is a difference between Merck's value and its price, as these two are different measures arrived at by various 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.