NEW YORK (TheStreet) -- These top five earnings releases before the weekend are all market-moving candidates.
I examine each one based on key metrics and provide an estimate on stocks I have crunched the numbers with.
Merck (MRK)Who They Are: Merck is a global pharmaceutical company. Its stock have an average daily trading volume of 19.1 million shares, and the company has a market capitalization of $132 billion. 52-Week High: $44.19 52-Week Low: $29.81 Float Short: 0.77% Book Value: $18.03 Price-to-Book Ratio: 2.31 Merck is anticipated to report better second-quarter earnings before the market opens on July 27, 2012. The current consensus estimate is for earnings of $1.01 a share, an improvement of 6 cents (5.9%) from 95 cents during the same quarter last year. More than half the analysts covering Merck rate it a buy or strong buy. Twelve of the 18 analysts covering the stock give it a buy rating, while six rate it a hold and none rate it a sell. The stock has appreciated 20% in the last year, and the average analyst target price is $44.75. The trailing 12-month price-to-earnings ratio is 11.3. Investors are receiving $1.68 in dividends for a fat yield of 3.87%. In the last month the stock has climbed 8%, and the shares have burned up the chart in 2012. The moving averages are in a bullish trend pattern that is just getting started. I am not a fan of Obamacare, but Merck is a winner as a result of the legislation, at least for now. There are a couple of ways for an investor to mitigate risk going into earnings. One is to sell $44 strike call option against some or all shares owned in a covered-call strategy. I like the $45 August calls for 19 cents for an aggressive approach. The $44 strike can be sold for a more defensive posture.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV