MRK Stock Price: Merck & Co, Inc set to bounce amid robust earnings, though blue wave poses a risk
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- NYSE: MRK has reported robust earnings for the third quarter, driven by a cancer therapy.
- Broader markets have been on the back foot due to the surge in covid cases.
- After weathering the storm, Merck has room to rise.
Markets are focused on coronavirus, but other diseases still grip the world – and Merck & Co., Inc.(NYSE: MRK) is set to benefit once the storm subsides. Shares of the New Jersey-based pharmaceutical giant have been on the back foot, falling by 1% on Tuesday. This slide is in line with the broader S&P 500 and other indexes, which are grappling with the spread of COVID-19 in Europe – and also in the US. The seven-day rolling average has surpassed 70,000 cases in America.
Merck and Co has been out of the spotlight in recent months, as other firms stood out in racing for a covid vaccine or therapeutics. However, the company still reported an increase in drug sales, mostly driven by a lung cancer immunotherapy treatment called Keytruda. Income from this medication jumped by 21% to $3.7 billion, beating estimates.
Moreover, MRK has upgraded its forecasts, saying it now projects a full-year adjusted profit of $5.91-$6.01 per share, with the bottom end of the range surpassing the previous top of the range – $5.78. The earnings report should help Merck weather the current market storm and push its shares higher.
On the other hand, the elections pose a risk to the pharmaceutical sector. Democrats have high chances of winning not on the White House but also the Senate. A President Joe Biden and with dominant Senators such as Bernie Sanders and Elisabeth Warren could work to lower drug prices. While Dems' priorities are first and foremost fiscal stimulus, they could reform healthcare later on, potentially weighing on pharma firms.
MRK Stock Forecast
NYSE: MRK has been sliding in the past month, and seems to have reached critical support at around $78.
It hit the same level last week and an attempt to break above $80 failed for now. The round $75 level is the next one to watch on the downside. Above $80, the next upside target is $83.
- NYSE: MRK has reported robust earnings for the third quarter, driven by a cancer therapy.
- Broader markets have been on the back foot due to the surge in covid cases.
- After weathering the storm, Merck has room to rise.
Markets are focused on coronavirus, but other diseases still grip the world – and Merck & Co., Inc.(NYSE: MRK) is set to benefit once the storm subsides. Shares of the New Jersey-based pharmaceutical giant have been on the back foot, falling by 1% on Tuesday. This slide is in line with the broader S&P 500 and other indexes, which are grappling with the spread of COVID-19 in Europe – and also in the US. The seven-day rolling average has surpassed 70,000 cases in America.
Merck and Co has been out of the spotlight in recent months, as other firms stood out in racing for a covid vaccine or therapeutics. However, the company still reported an increase in drug sales, mostly driven by a lung cancer immunotherapy treatment called Keytruda. Income from this medication jumped by 21% to $3.7 billion, beating estimates.
Moreover, MRK has upgraded its forecasts, saying it now projects a full-year adjusted profit of $5.91-$6.01 per share, with the bottom end of the range surpassing the previous top of the range – $5.78. The earnings report should help Merck weather the current market storm and push its shares higher.
On the other hand, the elections pose a risk to the pharmaceutical sector. Democrats have high chances of winning not on the White House but also the Senate. A President Joe Biden and with dominant Senators such as Bernie Sanders and Elisabeth Warren could work to lower drug prices. While Dems' priorities are first and foremost fiscal stimulus, they could reform healthcare later on, potentially weighing on pharma firms.
MRK Stock Forecast
NYSE: MRK has been sliding in the past month, and seems to have reached critical support at around $78.
It hit the same level last week and an attempt to break above $80 failed for now. The round $75 level is the next one to watch on the downside. Above $80, the next upside target is $83.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.