Merck & Co Inc Stock Buy Recommendation Reiterated (MRK)
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.87% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Pharmaceuticals industry average. The net income increased by 2.2% when compared to the same quarter one year prior, going from $1,693.00 million to $1,730.00 million.
- MERCK & CO's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, MERCK & CO increased its bottom line by earning $2.03 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($3.81 versus $2.03).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for MERCK & CO is rather high; currently it is at 64.50%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.10% trails the industry average.
--Written by a member of TheStreet Ratings Staff. FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!
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