Merck stock: buy or sell?

MRK stock price: $79.49 0.77% At close on May 21st, 2019

Updated on:
May 21st, 2019

5

Shares of Merck closed today at $79.49 and stepped up a tiny 0.77%.

Merck & Co., Inc. provides healthcare solutions worldwide. It operates in four segments: Pharmaceutical, Animal Health, Healthcare Services, and Alliances.

Should I buy Merck stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Merck stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean MRK will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Merck stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 8 ratings published for MRK stock in the last 30 days.

The general sentiment of these ratings is bullish for MRK stock, with 6 positive ratings.
Is MRK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-2UBS GroupBuyBuy
2019-5-1Bank of AmericaBuyBuy
2019-3-4Cantor Fitzgeraldn/aBuy
2019-3-29Cantor Fitzgeraldn/aBuy
2019-2-22Cantor Fitzgeraldn/aOverweight
2019-2-20ArgusHoldBuy
2019-2-19BMO Capital Marketsn/aHold
2019-1-23BMO Capital MarketsOutperformMarket Perform

Merck stock analysis

Daily outlook

Merck shares stepped up 0.77% to $79.49 today.

Shares of Merck stepped up a tiny 0.77% and closed at $79.49. Since price and SMA100d lines crossed up on Thursday, MRK climbed $1.94 (2.50%). On April, MRK hit new all time highs, pushing higher previous ATH of $83.47 recorded on March. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

MRK stock chart (daily)

Weekly outlook

Shares of Merck ended this week at $79.49 and gained a slightly good 0.98%. By mid April MRK plunged a scary -8.53% in just one week.

Merck stock just marked a top under its last top. Athought it's not concerning right now, investors in MRK should be alerted as this could be a warning for future complications. You should be expectant to Merck price to not slide under , as this would complicate possible price recovery in the short and mid-term. Not so far away is the last all-time high Merck marked early April. Late April MRK price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since late June 2018 when SMA20w and SMA40w crossed up, MRK price gained $19.27 per share (32.00%).

MRK stock chart (weekly)

Merck stock price history

Merck stock historical price chart

MRK stock reached all-time highs on April with a price of $83.85.

Merck stock price target is $90.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' MRK stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 6 price forecasts for Merck stock:
MRK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-2UBS GroupRaises Target$87.00$88.001.1%
2019-5-1Bank of AmericaRaises Target$90.00$91.001.1%
2019-3-4Cantor FitzgeraldReiteratesn/a$95.00-
2019-3-29Cantor FitzgeraldReiteratesn/a$95.00-
2019-2-20ArgusRaises Targetn/a$95.00-
2019-1-23BMO Capital MarketsDowngradesn/a$80.00-
(in average)$88.50$90.702.0%
Moving in a range from $95.00 and $80.00, the price target for MRK stock is $90.70.

Financials and fundamental analysis

Earnings date and Earnings per Share

For the last 21 days, when Merck published its last earnings report, it inched a slightly fine 3.53%. Unfortunately, reported EPS is not yet available in our database.
MRK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.27n/a
2017-Q32017-10-271.031.117.8%
2017-Q42018-02-020.940.984.3%
2018-Q12018-05-010.991.056.1%
2018-Q22018-07-271.031.062.9%
2018-Q32018-10-251.161.192.6%
2018-Q42019-02-011.031.041.0%
2019-Q12019-04-301.08n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Merck annual revenues escalated a good 5.41% to $42,294.00 million USD from $40,122.00 marked in 2017. When comparing 2018 vs 2017, slightly better, profit margin (that is, the net income divided by revenues) jumped a 8.74% to 14.71%.

To have an up to date picture of the financial situation of Merck, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Merck TTM sales up to March 2019 were $43,073.00 and earnings were $8,399.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review Merck business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, appreciated a tiny 1.84%. Regarding profit margin, Merck raised 4.79% to 14.71%

MRK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$44,090 M-$4,400 M10.0%-
2014$42,237 M-4.20%$11,920 M28.2%170.91%
2015$39,498 M-6.48%$4,442 M11.2%-62.73%
2016$39,807 M0.78%$3,920 M9.8%-11.75%
2017$40,122 M0.79%$2,394 M6.0%-38.93%
2018$42,294 M5.41%$6,220 M14.7%159.82%
TTM $43,073 M1.84%$8,399 M19.5%35.03%

Quarterly financial results

Merck reported $10,816.00 million in sales for 2019-Q1, a -1.65% decline compared to previous quarter. Reported quarter income marked $2,915.00 million with a profit margin of 26.95%. Profit margin boosted a 10.34% compared to previous quarter when profit margin was 16.61%. When comparing revenues to same quarter last year, Merck sales marked a very good gain and rose a 7.76%.
MRK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$9,880 M-$1,950 M19.7%-
2017-Q3$10,310 M4.35%$-56 M-0.5%-102.87%
2017-Q4$10,433 M1.19%$-1,046 M-10.0%1,767.86%
2018-Q1$10,037 M-3.80%$736 M7.3%-170.36%
2018-Q2$10,465 M4.26%$1,707 M16.3%131.93%
2018-Q3$10,794 M3.14%$1,950 M18.1%14.24%
2018-Q4$10,998 M1.89%$1,827 M16.6%-6.31%
2019-Q1$10,816 M-1.65%$2,915 M27.0%59.55%

Merck ownership

When you are planning to buy shares of a company, it's worth to have a look its ownership structure.

Merck shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.08% of all shares.

In case of Merck stock, 78.28% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MRK stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Merck:

MRKAMGNBMYGSKJNJ
Market cap$204.3 B$102.7 B$75.9 B$193.7 B$368.2 B
Total shares2,570.0 M609.9 M1,640.0 M4,920.0 M2,660.0 M
Float shares2,570.0 M609.0 M1,630.0 M2,440.0 M2,650.0 M
  - Institutional holdings (%)78.3%81.9%75.0%11.0%69.2%
  - Insider holdings (%)0.1%0.2%0.1%0.0%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Merck summary

Tuesday, May 21st, 2019
Open$79.08
Close$79.49
Day range$78.53 - $79.72
Previous close$78.88
Session gain0.77%
Average true range$1.33
50d mov avg$79.53
100d mov avg$78.09
200d mov avg$74.46
Daily pattern
Weekly pattern lt01a

Merck performance

To better understand Merck performance you must compare its gains with other related stocks in same sector or industry. For Merck, the comparison is made against Amgen, Bristol-Myers Squibb, GlaxoSmithKline, , Eli Lilly and, Novartis, Pfizer, and Teva Pharmaceutical Industries.
Stock3m6m12m
MRKMerck-0.92%7.93%38.39%
AMGNAmgen-9.42%-11.12%-2.65%
BMYBristol-Myers Squ...-8.35%-11.04%-9.55%
GSKGlaxoSmithKline-1.65%-0.48%4.01%
JNJ2.00%-1.41%16.21%
LLYEli Lilly and-5.74%4.11%43.48%
NVSNovartis4.92%8.19%25.16%
PFEPfizer-2.33%-1.89%20.55%
SNY4.81%-3.92%12.73%
TEVATeva Pharmaceutic...-33.39%-47.63%-48.20%

Merck competitors

We selected a few stocks to conform a list of Merck competitors to check if you are interested in investing in MRK:

Latest Merck stock news