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Based in Rahway, New Jersey, Merck & Co., Inc. (MRK) operates in the pharmaceutical and animal health sectors. Commanding a massive market cap of $314.5 billion, the company is best known for its groundbreaking cancer drug Keytruda and a wide range of vaccines and veterinary products. The company is set to release its fiscal Q2 earnings results before the market opens on Tuesday, Jul. 30.
Ahead of this event, analysts expect MRK to swing to a profit of $2.15 per share, reflecting a dramatic turnaround of 204.4% from a loss per share of $2.06 recorded in the same quarter last year. The company has consistently exceeded Wall Street's earnings expectations over the past four quarters. In the most recent quarter, the company surpassed the consensus EPS estimate by a margin of 6.7% due to stronger-than-expected sales from Keytruda.
For fiscal 2024, analysts foresee MRK to report EPS of $8.60, a substantial 469.5% increase from $1.51 in fiscal 2023. Looking forward to fiscal 2025, the company’s EPS is projected to grow another 15.8% annually to $9.96.
Merck & Co. has gained 18.6% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 21.4% increase over the same time frame. However, narrowing the focus, the stock’s double-digit return has outpaced the S&P 500 Healthcare Sector SPDR's (XLV) 11.3% gain over the same period.
In early February, Merck & Co.'s stock soared nearly 5% after reporting stronger-than-expected Q4 revenue and issuing optimistic full-year 2024 guidance, fueled by robust Keytruda sales and better-than-forecast earnings projections. Plus, the stock also surged on April 25 following the company’s raised annual profit and revenue forecasts, driven by strong Q1 Keytruda growth and a notable beat on adjusted EPS, further boosting investor confidence.
Overall, analysts' consensus view on Merck & Co. stock is bullish, with a "Strong Buy" rating. Out of 23 analysts covering the stock, 21 recommend a "Strong Buy," and the remaining two give a "Hold" rating.
The above consensus is slightly more bullish than three months ago, with 20 analysts suggesting a "Strong Buy." The average analyst price target for MRK is $140.32, implying a potential upside of 10.9% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
