Merck (MRK) Off To A Strong Start In Pre-Market Activity - TheStreet

Trade-Ideas LLC identified

Merck

(

MRK

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Merck as such a stock due to the following factors:

  • MRK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $694.4 million.
  • MRK traded 15,665 shares today in the pre-market hours as of 8:47 AM.
  • MRK is up 2% today from Friday's close.

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More details on MRK:

Merck & Co., Inc. provides health care solutions worldwide. The stock currently has a dividend yield of 3.5%. MRK has a PE ratio of 15. Currently there are 7 analysts that rate Merck a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Merck has been 13.2 million shares per day over the past 30 days. Merck has a market cap of $146.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.64 and a short float of 1.4% with 2.96 days to cover. Shares are down 6.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Merck as a

buy

. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Pharmaceuticals industry and the overall market, MERCK & CO's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $2,585.00 million or 11.66% when compared to the same quarter last year. In addition, MERCK & CO has also vastly surpassed the industry average cash flow growth rate of -45.83%.
  • The gross profit margin for MERCK & CO is currently very high, coming in at 79.15%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.01% trails the industry average.
  • MRK, with its decline in revenue, slightly underperformed the industry average of 6.2%. Since the same quarter one year prior, revenues fell by 10.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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