Merck Stock Performance

MRK -  USA Stock  

USD 81.29  0.25  0.31%

On a scale of 0 to 100, Merck holds a performance score of 24. The company secures a Beta (Market Risk) of -0.3567, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Merck's beta means in this case. As returns on the market increase, returns on owning Merck are expected to decrease at a much lower rate. During the bear market, Merck is likely to outperform the market. Although it is vital to follow Merck Company price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Merck Company technical indicators, you can presently evaluate if the expected return of 0.33% will be sustainable into the future. Please exercises Merck Company potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether Merck Company current price movements will revert.

Merck Stock Performance 

 
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Merck Performance
24 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Merck demonstrated solid returns over the last few months and may actually be approaching a breakup point. ...more

Merck Price Channel

Quick Ratio0.87
Fifty Two Week Low68.44
Target High Price115.00
Fifty Two Week High91.40
Payout Ratio78.08%
Trailing Annual Dividend Yield3.15%
Target Low Price70.00

Merck Relative Risk vs. Return Landscape

If you would invest  7,641  in Merck Company on October 21, 2021 and sell it today you would earn a total of  535.00  from holding Merck Company or generate 7.0% return on investment over 90 days. Merck Company is generating 0.3273% of daily returns assuming volatility of 0.9803% on return distribution over 90 days investment horizon. In other words, 8% of stocks are less volatile than Merck, and above 94% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon Merck is expected to generate 1.38 times more return on investment than the market. However, the company is 1.38 times more volatile than its market benchmark. It trades about 0.33 of its potential returns per unit of risk. The DOW is currently generating roughly 0.07 per unit of risk.

Merck Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Merck's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Merck Company, and traders can use it to determine the average amount a Merck's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.3339

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Estimated Market Risk
 0.98
  actual daily
 
 8 %
of total potential
 
88
Expected Return
 0.33
  actual daily
 
 6 %
of total potential
 
66
Risk-Adjusted Return
 0.33
  actual daily
 
 24 %
of total potential
 
2424
Based on monthly moving average Merck is performing at about 24% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Merck by adding it to a well-diversified portfolio.

About Merck Performance

To evaluate Merck Company Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Merck generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Merck Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Merck Company stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Merck's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash290.9 M313.9 M
Return on Investment 13.01  11.53 
Return on Average Assets 0.09  0.09 
Return on Average Equity 0.30  0.25 
Return on Invested Capital 0.20  0.19 
Return on Sales 0.21  0.21 
Merck Co., Inc. operates as a healthcare company worldwide. Merck Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey. Merck operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 73000 people.

Things to note about Merck Company

Checking the ongoing alerts about Merck for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Merck Company help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Merck Alerts

Equity Alerts and Improvement Suggestions

Merck Company was previously known as Merck Co and was traded on New York Stock Exchange under the symbol MRK.
About 75.0% of the company shares are owned by institutional investors
Latest headline from www.fool.com: Merck Snags Yet Another Indication for This Drug Combo - Motley Fool
Additionally, see Stocks Correlation. Note that the Merck Company information on this page should be used as a complementary analysis to other Merck's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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When running Merck Company price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine Merck value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.