FSMNews

Merck & Co., Inc. edged higher at 1.02% amid the last five sessions, citing 22 analysts had coverage on the stock and assigned a hold rating. About 10 brokerage firms issued a buy or better rating, while 0 sells versus 0 underperforms.                 

The company’s stock was given $66.11 average PT by 19 analysts, with individual price objectives ranging between $52 to $82. Shares settled in $62.57 at the close of trade, suggesting that analysts see rallying shares about 5.66 percent for this year.

Earnings to Watch

Market participants covering MRK stocks at the current target price of $62.57 per share should focus on the upcoming quarterly results of the company for the September 2016 quarter.     

For the next quarter, analysts are expecting the company to post an earnings per share (EPS) of $0.98, suggesting a 2.08 percent increase in a year-over-year basis. Meanwhile, revenue is estimated to reach $10.17B.   

FSMNews

Shares of Merck & Co., Inc. significantly rallied 0.68% to settle at $62.57 during the course of Tuesday’s session, with share prices changing hands between the range of $61.83 – $62.70. The stock traded volume shares reached 7.34 million shares, compared to its average daily volume of 8.27 million shares.   

The pharmaceutical company posted as high as 41.50% EPS growth in the last five years and gained 79.20% earnings growth in a year-over-year basis. The stock posted below its 52-week highs, resting at -1.52% and gained 0.48% for the last five sessions.    

Current Stance of Shares

The chart below illustrates the current stance of MRK stock’s movement before the next quarterly earnings release for September 2016. Meanwhile, market players were signaled to execute Buy position on the third candle, which in fact did slightly rallied and continue to soar on a heavy trading volume, reaching a peak level of 97.980 on September 20.

In essence, stock prices showed an upward movement and sharply climbed at 98.080 in late trade on September 23 at resistance 100.131 and support 97.569.

However, shares were seen dropping after posting session highs and is currently rebounding in a bearish tone.          

FSMNews

Conclusion

Given the closely watched upcoming earnings release of Merck & Co., we conclude that MRK shares is expected to decline on the day of the scheduled release of their earnings report as their previous earnings release for fiscal quarter end June 2016 showed disappointing results, along with their fiscal quarter end March 2016 reported on May 5, 2016 also showed declining results.

Get market insights and updates and subscribe to our daily newsletter! FSM News provides accurate market knowledge and information.