Merck & Co., Inc. (NYSE:MRK) Valuation Observations

Sock Traders Daily has issued comments about shares of Merck & Co., Inc. (NYSE:MRK) as those relate to both technical and fundamental valuations.  Our internal alerts have signaled ha shares of MRK are officially testing longer term resistance, shares have clearly been strong, and this has been true even in the face of deteriorating sales and declining Earnings growth. 

According to our in-house consensus estimates, EPS growth is expected to fall below 1% in 2017, which will cause the PEG ratio to skyrocket.  The PE multiple is currently 17x, which appears low when compared to the 25x afforded to the S&P, but our observations define this as a no-growth stock, and no-growth when coupled with high PE multiples causes red flags to surface.

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Stock Traders Daily warns investors accordingly.

Technical Summary

Term →Near Mid Long
Bias Neutral Strong Neutral
P1 62.95 59.43 56.27
P2 63.53 62.34 60.21
P3 63.83 65.33 64.15

Long Term Trading Plans for MRK

August 24, 2016, 9:16 am ET

The technical Summary and associated Trading Plans for MRK listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for MRK. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

MRK - (Long) Support Plan

Buy over 60.21 target 64.15 stop loss @ 59.95.
The technical summary data tells us to buy MRK near 60.21 with an upside target of 64.15. This data also tells us to set a stop loss @ 59.95 to protect against excessive loss in case the stock begins to move against the trade. 60.21 is the first level of support below 63.58 , and by rule, any test of support is a buy signal. In this case, support 60.21 is being tested, a buy signal would exist.

MRK - (Short) Resistance Plan

Short under 64.15 target 60.21 stop loss @ 64.41
The technical summary data is suggesting a short of MRK as it gets near 64.15 with a downside target of 60.21. We should have a stop loss in place at 64.41 though. 64.15 is the first level of resistance above 63.58, and by rule, any test of resistance is a short signal. In this case, if resistance 64.15 is being tested, a short signal would exist.

MRK Long Term Analysis

MRK Revenue chart

MRK Growth rate - Yearly

MRK PEG chart