Merck stock: buy or sell?

MRK stock price: $86.17 1.30% At close on August 19th, 2019

Updated on:
August 19th, 2019

5

Merck ended today at $86.17 and appreciated a decent 1.30%.

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 define your own trading plan that matches with your character as inversor. 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 fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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 collected 15 ratings published for MRK stock in the last 30 days.

The general sentiment of these ratings is bullish for MRK stock, with 11 positive ratings.
Is MRK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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
2019-6-14JPMorgan Chase & Co.n/aOverweight
2019-5-28Goldman Sachs Groupn/aNeutral
2019-5-2UBS GroupBuyBuy
2019-5-1Bank of AmericaBuyBuy
2019-3-4Cantor Fitzgeraldn/aBuy
2019-3-29Cantor Fitzgeraldn/aBuy

Merck stock analysis

Daily outlook

Merck appreciated a decent 1.30% and closed at $86.17.

Merck ended today at $86.17 and appreciated a decent 1.30%. From a daily perspective, MRK is in a short term uptrend after plotting its last bottom ($82.16, on August 5th) higher than the previous bottom, and its last top ($86.79, on Tuesday) also over the previous top. Now trading in between its last bottom and last top MRK might consolidate in a plain range, waiting to break out over $86.79 or down under $82.16. On Jul/15 MRK price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. Since June when SMA50d and SMA100d crossed up, MRK price gained $2.34 per share (2.79%). On July, MRK hit a new all time high, pushing higher than on June tops. Check different trading setups that use ATHs as triggers.

MRK stock chart (daily)

Weekly outlook

Shares of Merck ended this week at $86.17 and stepped up a tiny 1.30%. Early July MRK plummed a scary -7.36% in just one week.

Not so far away is the last all-time high Merck marked early July. 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 July with a price of $87.07.

Merck stock price target is $94.40

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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. We detected 12 price targets for MRK stock posted in the last 30 days:
MRK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-6-14JPMorgan Chase & Co.Raises Target$90.00$93.003.3%
2019-5-28Goldman Sachs GroupInitiatesn/a$85.00-
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-
(in average)$87.70$94.408.0%
Moving in a range from $105.00 and $85.00, the price target for Merck stock is $94.40. In average, analysts' outlook on MRK price target is positive, increasing the forecast by a 8.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Merck posted its last earnings report, it jumped a phenomenal 12.98%. 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

Compared to 2017, last anual revenues report draw a fine growth of 5.41% to $42,294.00 M USD. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) jumped a 8.74% to 14.71%.

Merck presents anual results 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 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Merck business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, grew a slightly good 1.84%. Regarding profit margin, Merck inched 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 posted $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 climbed a 10.34% compared to previous quarter when profit margin was 16.61%. When comparing sales to same quarter last year, Merck sales marked an excellent increase and escalated 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 a company, it's worth to overview 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.

For a better understanding, the following table shows ownership data compared to other related stocks:

MRKAMGNBMYGSKJNJ
Market cap$221.5 B$124.4 B$76.6 B$100.1 B$349.4 B
Total shares2,570.0 M609.9 M1,630.0 M2,490.0 M2,660.0 M
Float shares2,560.0 M598.3 M1,630.0 M2,440.0 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

Monday, August 19th, 2019
Open$84.45
Close$86.17
Day range$85.46 - $86.53
Previous close$85.06
Session gain1.30%
Average true range$1.65
50d mov avg$83.59
100d mov avg$81.15
200d mov avg$78.56
Daily patternlt06a
Weekly pattern

Merck performance

To better understand Merck performance you must becnhmark 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
MRKMerck6.87%8.13%28.25%
AMGNAmgen20.93%10.03%6.52%
BMYBristol-Myers Squ...1.16%-7.47%-20.35%
GSKGlaxoSmithKline3.02%1.23%2.45%
JNJ-4.58%-2.38%0.31%
LLYEli Lilly and-4.20%-8.75%7.00%
NVSNovartis2.24%13.57%23.10%
PFEPfizer-15.67%-16.79%-14.78%
SNY0.29%2.86%4.11%
TEVATeva Pharmaceutic...-44.88%-64.35%-73.53%

Merck competitors

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

Latest Merck stock news