Portfolio Grader currently ranks Merck & Co (NYSE:MRK) a Sell. The methodology for fundamental and quantitative metrics used in this analytical tool, developed by Louis Navellier evaluates and ranks nearly 5,000 stocks each week. MRK has maintained this ranking for 2 months.
The company is one of 134 companies within the Pharmaceuticals GICS industry group, which is in turn part of the 782 company GICS Health Care sector. MRK has a market value of $152.3 billion which is in the top 10% of its industry group The stock's Portfolio Grader ranking currently places it 121 among the 134 companies in this industry group, a position that is well below-average.
The Health Care sector is ranked number 7 among the 12 sectors in the Portfolio Grader universe putting it in the third quartile of all the GICS sectors. The Pharmaceuticals industry group is ranked 43 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
The scores the company has received are average or below-average scores in 6 of the 8 areas analyzed by Portfolio Grader in the ranking of company stocks.
The company's operational scores are a source of great concern with a ranking for sales growth, operating margin and earnings growth that are substantially below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is worse than average. MRK's grades for cash flow and return on equity are worse than its industry group average. Based on these fundamental scores, Merck & Co places in the bottom quartile of the industry group.
Portfolio Grader quantitatively views MRK's shares using the Navellier Proprietary Quantitative Score. This metric looks at MRK's shares from the angle of risk/reward. This proprietary scoring system takes into account the relative value of the company's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, MRK currently scores well below-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.
