Merck & Company (NYSE:MRK) shares traded on 1.06% above secure line and closed at $82.95. The stock exchanged hands 9.04 Million shares versus average trading capacity of 11.5 Million shares. It has a market cap of $217 Billion.
Wall Street analysts are predicting that Merck & Company (NYSE:MRK) will report earnings per share of $1.06 in their quarterly report. For the current quarter Merck & Company (NYSE:MRK) has high EPS estimates of $1.11 in contradiction of low EPS estimates of $1. However a year ago for the same quarter the company has reported $1.05 EPS. Average estimation for the current quarter has been provided by 12 analysts.
Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.
A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously Merck & Company (NYSE:MRK) reported $1.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.01 with surprise factor of 1%.
Merck & Company (NYSE:MRK) has average revenue estimates of $10.46 Billion, compared to low analyst estimates of $10.15 Billion and high estimates of $10.69 Billion for the current quarter. A total number of 8 analysts provided estimations over revenues. For the current year the company’s revenue estimates are $44.65 Billion compared to low analyst estimates of $44.08 Billion and high estimates of $47.55 Billion according to the prediction of 15 analysts.
Taking a broader look at the analyst consensus, according to 15 analysts Merck & Company (NYSE:MRK)’s price will reach at $85.49 during 52 weeks. Its minimum price target estimates has been figured out at $69.3 while the maximum price target forecast is established at $95.
On the other hand Merck & Company (NYSE:MRK) has Relative Strength Index (RSI 14) of 69.37 along with Average True Range (ATR 14) of 1.11. Where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder.
Consequently Merck & Company (NYSE:MRK)’s weekly and monthly volatility is 1.41%, 1.33% respectively.