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Friday, September 24, 2021

Merck & Co., Inc. (NYSE:MRK) Target Price $93

$MRK #USA #NYSE #Stocks #Merck #Medical #Covid #ShayneHeffernan

Earnings Surprise Streak Could Continue

Ticker: NYSE:MRK
Price: $78.78
Recommendation: Strong Buy
Target Price: $93.00
Current Long-Term Growth: 6.00%

Company Information

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Merck (MRK). This company shows potential for another earnings beat.

This pharmaceutical company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.83%.

For the most recent quarter, Merck was expected to post earnings of $1.39 per share, but it reported $1.50 per share instead, representing a surprise of 7.91%. For the previous quarter, the consensus estimate was $1.14 per share, while it actually produced $1.16 per share, a surprise of 1.75%.

Business Summary

Merck & Co., Inc. is a global healthcare company.

The Company offers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products.

It operates through four segments: Pharmaceutical, Animal Health, Healthcare Services and Alliances.

The Company’s Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures.

Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders.

The Company sells its human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed healthcare providers, such as health maintenance organizations, pharmacy benefit managers and other institutions.

Vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices.

Shayne Heffernan Trade Idea

“Our current price target of Merck & Co., Inc. will come in around $93.00 giving the stock a price increase of +18.05%.”

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 82.96.

The projected lower bound is: 74.55.

The projected closing price is: 78.76.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.6968. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.42. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 86 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 169.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

MERCK & CO closed up 0.660 at 78.780. Volume was 51% below average (consolidating) and Bollinger Bands were 17% narrower than normal.

Open     High     Low     Close      Volume
78.570   79.310   78.220  78.780     1,887,288
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bearish
Moving Averages: 10-period     50-period      200-period
Close:           76.97         78.48          82.49
Volatility:      26            34             41
Volume:          3,240,548     3,011,849      3,286,206

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


MERCK & CO is currently 4.5% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of MRK.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on MRK.N and have had this outlook for the last 12 periods.

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