(C) Reuters. Down More Than 8% in the Past Month, Should You Scoop Up Shares of Merck & Co?
Health care company Merck & Co’s (MRK) shares have declined more than 8% in price over the past month. However, the company made several advancements and reported impressive top-line growth across its major segments in the second quarter. So, is it wise to scoop up its shares now? Let’s find out.Shares of established health care company Merck & Co., Inc. (MRK), which is headquartered in Kenilworth, N.J., have lost 8.4% over the past month to close yesterday’s trading session at $72.04, due mainly to investor pessimism around the company not being a frontrunner in the COVID-19 vaccine race. Hedge funds’ interest in the name has remained unchanged from the last quarter. However, the stock has gained 3% in price since its 52-week low of $68.44, which it hit on March 4, 2021.
Furthermore, MRK announced recently that its experimental COVID-19 antiviral treatment, molnupiravir, could get U.S. emergency use authorization before the year-end. The company also said that the COVID-19 pandemic would have a negligible impact on its operating expenses.
MRK expects sales growth to be between 12% to 14% in its fiscal year 2021. The company’s revenue is estimated to be between $46.40 billion and $47.40 billion, and its non-GAAP EPS is expected to be between $5.47 and $5.57 in the current year. So, the stock’s near-term prospects look promising.
Down More Than 8% in the Past Month, Should You Scoop Up Shares of Merck & Co?
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