Merck's stock falls 1.91% to $79.96 despite broader market gain, investors await earnings release on July 29.

Merck's stock price has fallen 1.91% to $79.96, outpacing the broader market. The pharmaceutical company's upcoming earnings release on July 29, 2025, is expected to report a 11.84% decline in EPS to $2.01 and a 2.48% drop in revenue to $15.71 billion. Analysts have revised their estimates downward, with the Zacks Rank currently at #4 (Sell). Merck trades at a Forward P/E ratio of 9.21, a discount compared to its industry average.

Merck (MRK) closed the most recent trading day at $79.96, marking a 1.91% decrease from the previous session. This decline outpaced the broader market's performance, with the S&P 500 losing 0.01%, the Dow dropping 0.32%, and the tech-heavy Nasdaq gaining 0.05% [1].

Over the past month, Merck's stock had gained 2.81%, outperforming the Medical sector's loss of 1.59% but lagging the S&P 500's gain of 5.37% [1]. Investors are closely watching the company's upcoming earnings release, scheduled for July 29, 2025. Analysts anticipate an EPS of $2.01, a 11.84% decline from the same quarter last year. Revenue is expected to drop 2.48% to $15.71 billion [1].

The Zacks Consensus Estimates project earnings of $8.85 per share and revenue of $64.82 billion for the full year, indicating changes of +15.69% and +1.02% respectively, from the preceding year [1]. Analyst estimates have been revised downward, with Merck currently holding a Zacks Rank of #4 (Sell), indicating a sell signal [1].

From a valuation perspective, Merck trades at a Forward P/E ratio of 9.21, which is a discount compared to its industry average of 14.13 [1]. The PEG ratio, which also takes into account the company's expected earnings growth rate, stands at 0.85, lower than the industry average of 1.26 [1].

The Large Cap Pharmaceuticals industry, to which Merck belongs, has a Zacks Industry Rank of 74, placing it in the top 30% of all industries [1]. The Zacks Industry Rank evaluates industry groups based on the average Zacks Rank of individual stocks within them, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [1].

Investors should monitor Merck's upcoming earnings report and the subsequent changes in analyst estimates to gauge the company's performance and potential future stock price movements.

References:
[1] https://finance.yahoo.com/news/merck-mrk-falls-more-steeply-214504598.html
[2] https://www.nasdaq.com/articles/merck-mrk-falls-more-steeply-broader-market-what-investors-need-know
[3] https://www.nasdaq.com/articles/merck-mrk-falls-more-steeply-broader-market-what-investors-need-know-0