Merck stock: buy or sell?

MRK stock price: $88.85 0.11% At close on December 6th, 2019

Updated on:
December 6th, 2019

5

Merck shares reached new all time highs again on Dec/6, setting highs to $89.24. Shares ended at $88.85 and stayed steady 0.11%. December/6 was the fourth climbing day in a row, gaining 2.08%.

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. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Merck stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Merck stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 15 ratings published for MRK stock in the last month.

Is MRK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-8Mizuhon/aBuy
2019-9-19Independent Researchn/aNeutral
2019-9-13Bank of American/aNeutral
2019-9-12Sanford C. Bernsteinn/aNeutral
2019-9-12JPMorgan Chase & Co.n/aNeutral
2019-9-10Morgan Stanleyn/aNeutral
2019-8-7ArgusHoldBuy
2019-8-5Mizuhon/aBuy
2019-8-16Svb Leerinkn/aOutperform
2019-8-15HSBCn/aNeutral
2019-8-14DZ Bankn/aBuy
2019-8-14Barclaysn/aSell
2019-6-21Morgan Stanleyn/aOverweight
2019-6-21Citigroupn/aBuy
2019-6-21Bank of American/an/a

Merck stock analysis

Daily outlook

Merck closed on December 6th at $88.85 after marking a new all time high ($89.24) and stayed steady a tight 0.11%.

Merck stayed stable 0.11% to $88.85 after reaching all time highs on December/6. MRK shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on Tuesday, MRK climbed unceasignly breaking out to new all time highs. Since Nov 12th when MRK stock price broke up the SMA100d line, it gained $5.57 (6.69%).

MRK stock chart (daily)

Weekly outlook

Merck shares appreciated 1.92% this week and topped a new all time high at $89.24. Counting this, it's been 4 green weeks in a row, gaining $5.26 or 6.19%.

If you observe the weekly chart, price finally broke over the resistance at $85.87 and continued climbing. Late April MRK price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

MRK stock chart (weekly)

Merck stock price history

Merck stock historical price chart

MRK stock reached all-time highs on Dec/6 with a price of $89.24.

Merck stock price target is $97.60

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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 30 days we found 7 price predictions for Merck stock:
MRK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-8MizuhoReiteratesn/a$97.00-
2019-8-7ArgusRaises Targetn/a$105.00-
2019-8-5MizuhoReiteratesn/a$97.00-
2019-8-16Svb LeerinkInitiatesn/a$103.00-
2019-6-21Morgan StanleyRaises Target$84.00$90.007.1%
2019-6-21CitigroupRaises Target$84.00$95.0013.1%
2019-6-21Bank of AmericaRaises Target$91.00$96.005.5%
(in average)$86.30$97.6013.0%
The price prediction for Merck stock is $97.60, moving in a range between $105.00 and $90.00. In average, analysts' outlook on MRK price forecast is positive, upgrading the forecast by a 13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Merck presented its last earnings report, it . 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 soared a nice 5.41% to $42,294.00 M dollars from $40,122.00 marked in 2017. Instead, its income margin (compared to revenues) escalated to 14.71%, that is $6,220.00 million.

Merck fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Merck TTM sales up to March 2019 were $43,073.00 and earnings $8,399.00 million USD. If we compare this TTM figures with the last reported annuality, we can review Merck business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, raised a tiny 1.84%. Aligned with this, profit margin (net income/sales) inched at 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 M in revenues for 2019-Q1, a -1.65% less compared to previous quarter. Reported quarter income marked $2,915.00 million with a profit margin of 26.95%. Profit margin rocketed a 10.34% compared to previous quarter when profit margin was 16.61%. When comparing sales to same quarter last year, Merck sales marked a remarkable increase 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 invest in a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Merck, 0.08% of all outstanding shares are owned by its staff.

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$226.6 B$138.9 B$97.7 B$113.3 B$369.2 B
Total shares2,550.0 M594.2 M1,630.0 M2,490.0 M2,630.0 M
Float shares2,540.0 M592.9 M1,630.0 M2,450.0 M2,630.0 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

Friday, December 6th, 2019
Open$89.00
Close$88.85
Day range$88.75 - $89.24
Previous close$88.75
Session gain0.11%
Average true range$1.11
50d mov avg$84.66
100d mov avg$84.18
200d mov avg$82.07
Daily patternlb03c
Weekly pattern lb01c

Merck performance

To measure stock performance is always good to benchmark with competitors or related stocks. For Merck, the comparison is made against Amgen, Bristol-Myers Squibb, GlaxoSmithKline, , Eli Lilly and, Novartis, Pfizer, and Teva Pharmaceutical Industries.
Stock3m6m12m
MRKMerck3.31%9.19%18.99%
AMGNAmgen13.28%35.03%25.82%
BMYBristol-Myers Squ...25.24%30.47%16.84%
GSKGlaxoSmithKline9.32%16.96%28.23%
JNJ10.25%2.79%-0.75%
LLYEli Lilly and5.50%2.24%7.72%
NVSNovartis2.63%4.55%21.82%
PFEPfizer5.92%-9.09%-9.59%
SNY2.47%4.12%10.28%
TEVATeva Pharmaceutic...41.51%7.13%-48.89%

Merck competitors

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

Latest Merck stock news