Merck & Co Inc (MRK): Today's Featured Drugs Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Merck (MRK) pushed the Drugs industry lower today making it today's featured Drugs laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Merck fell 60 cents (-1.4%) to $43.34 on average volume. Throughout the day, 14.7 million shares of Merck exchanged hands as compared to its average daily volume of 15.7 million shares. The stock ranged in price between $43.09-$44.04 after having opened the day at $44.04 as compared to the previous trading day's close of $43.94. Other companies within the Drugs industry that declined today were: Pluristem Therapeutic (PSTI), down 12.6%, Aoxing Pharmaceutical Company (AXN), down 12.5%, Prima Biomed Ltd. ADR (PBMD), down 11.8%, and Cormedix (CRMD), down 8.8%.

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Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. Merck has a market cap of $134.19 billion and is part of the health care sector. The company has a P/E ratio of 20.1, equal to the average drugs industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Merck a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

• You can view the full Merck Ratings Report.

On the positive front, IntelliPharmaCeutics International (IPCI), up 15.5%, Clovis Oncology (CLVS), up 11.9%, Cleveland BioLabs (CBLI), up 10.1%, and Bacterin International Holdings (BONE), up 9.6%, were all gainers within the drugs industry with Arena Pharmaceuticals (ARNA) being today's featured drugs industry leader.

• Use our drugs section to find industry-relevant news.
• Or find some new ideas from our top rated stocks lists.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the drugs industry could consider SPDR S&P Pharmaceuticals ETF (XPH) while those bearish on the drugs industry could consider ProShares UltraShort Nasdaq Biotech (BIS).

• Find other investment ideas from our top rated ETFs lists.

 

For more information on Merck & Co Inc click any of the following:

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• Merck & Co Inc Key Stats & Profile

• Merck & Co Inc Earnings

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• Merck & Co Inc Growth Rates

• Merck & Co Inc Balance Sheet

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• Merck & Co Inc Income Statement