Merck & Co Inc (MRK)

Industry: Drugs
MRK
Merck & Co Inc

Price: $32.93

Chaikin Power Gauge Report | Generated: Thu Sep 08 17:09 EDT 2011
$32.93

Power Gauge Rating

MRK - Neutral
The Chaikin Power Gauge Rating for MRK is neutral with average financial metrics, weak earnings performance, bullish price/volume activity and very positive expert opinions. Expert opinions about MRK are very positive which is evidenced by a very low short interest ratio. MRK's earnings performance is weak as a result of a relatively poor trend in earnings this year. Despite these bullish factors, Chaikin Power Tools has identified a negative trend resulting in a neutral rating.
TM

Financial Metrics

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral
MRK Merck & Co Inc August 24, 2011

Chaikin Sentiment Gauge for MRK is neutral. Stories concerning MRK have a balanced or neutral sentiment.

TM

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

LT Debt/Equity Ratio

Neutral
MRK's financial metrics are neutral. The company has high revenue per share and is carrying too much long term debt. The rank is based on a high long term debt to equity ratio, low price to sales ratio and relatively low cash flow.

Price to Book Value

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Ratio Current Ratio LT Debt/Equity TTM 2.05 0.27

Valuation
Ratio Price/Book Price/Sales TTM 1.76 2.21

Returns
Ratio Return on Invest Return on Equity TTM 15.4% 19.5%

Earnings Performance

Earnings Performance Rating

Earnings Growth

Bearish
MRK's earnings performance has been weak. The company experienced relatively poor earnings growth in the past 12 months and is priced relatively high compared to next year's projected EPS. The rank is based on high earnings growth over the past 3-5 years, a relatively poor trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Earnings Surprise

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

12/06 Revenue(M) Rev % Growth EPS EPS % Growth 22,636.00 2.84% $2.03 -3.33% 12/07 24,197.70 6.90% $1.49 -26.60% 12/08 23,850.30 -1.44% $3.64 144.30% 12/09 27,428.30 15.00% $5.65 55.22% 12/10 45,987.00 67.66% $0.28 -95.04%

EPS Estimates
Factor Quarterly EPS Yearly EPS Factor 3-5 year EPS Actual EPS Prev $0.11 $0.28 Actual EPS Growth 18.19% EST EPS Current $0.90 $3.73 Est EPS Growth 3.25% Change +0.79 +3.45 Change -14.94

EPS Surprise
Estimate Latest Qtr 1 Qtr Ago 2 Qtr Ago 3 Qtr Ago $0.95 $0.84 $0.83 $0.83 Actual $0.95 $0.92 $0.88 $0.85 Difference $0.00 $0.08 $0.05 $0.02 % Difference 0.00 9.52 6.02 2.41

EPS Quarterly Results

FY 12/09 12/10 12/11 Qtr 1 $0.68 $0.09 $0.34 Qtr 2 $0.74 $0.24 $0.65 Qtr 3 $1.61 $0.11 Qtr 4 $2.35 $-0.17 Total $5.38 $0.27 -

Fiscal Year End Month is December.

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Price Trend & Expert Opinions

Price/Volume Activity

Price/Volume Activity Rating

Relative Strength vs Market

Bullish
Price and volume activity for MRK is bullish. MRK has outperformed the S&P 500 over 26 weeks and has a rising price trend. The rank for MRK is based on its price strength versus the market, negative Chaikin money flow, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.

Chaikin Money Flow

Price Trend

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether MRK is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity
Factor 52 Week High 52 Week Low % Change YTD Rel S&P 500 Value 37.58 29.81 -3.78%

Price Activity
Factor % Change Price - 4 Weeks % Change Price - 24 Weeks % Change Price - 4 Wks Rel to S&P % Change Price - 24 Wks Rel to S&P Value 10.57% 1.01% 3.38% 9.35%

Volume Activity
Factor Average Volume 20 Days Average Volume 90 Days Chaikin Money Flow Persistency Value 16,385,914 15,104,853 34%

Expert Opinions

Expert Opinions

Earnings Estimate Revisions

Very Bullish
Expert opinions about MRK are very positive. Shorting of MRK is low and analysts's opinions on MRK have been more positive recently. The rank for MRK is based on a low short interest ratio, insiders purchasing stock, optimistic analyst opinions and price strength of the stock versus the Drugs industry group.

Short Interest

Insider Activity

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions

Current Current Qtr Next Qtr 0.90 0.96 Current Current FY 3.73 7 Days Ago % Change 0.90 0.96 0.00% 0.00%

Analyst Recommendations
Factor Mean this Week Mean Last Week Change Mean 5 Weeks Ago Value Buy Buy 0.00 Buy

EPS Estimates Revision Summary

Last Week Up Curr Qtr Curr Yr Next Qtr 0 0 0 0 Down 0 0 0 0 Last 4 Weeks Up 0 0 0 0 Down 0 2 0 2

30 Days Ago % Change 3.73 0.00

Next Yr

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The Company & Its Competitors

MRK's Competitors in Drugs

Company MRK JNJ NVS PFE SNY GSK Power Gauge Historic EPS growth 18.19% 4.21% 9.55% 6.66% 4.26% 3.26% Projected EPS growth 3.25% 6.00% 4.71% 4.00% 1.30% 4.82% Profit Margin 6.13% 18.32% 18.05% 12.78% 16.81% 11.92% PEG 2.72 2.20 2.16 2.12 5.61 2.36 PE 9.16 13.38 10.62 8.60 8.76 11.70 Revenue(M) 45,987 61,587 50,624 67,809 41,395 45,905

News Headlines for MRK Orasure Technologies reports second-quarter loss - Aug 4, 2011 FeminaPharma NuvaRing 08 02 - Aug 2, 2011 Merck's Wilson plant adding jobs - Aug 1, 2011 Earnings Preview: Bristol-Myers reports 2Q results - Jul 26, 2011 Femina NuvaRing 07 20 - Jul 20, 2011

Company Details MERCK & CO INC ONE MERCK DRIVE P.O. BOX 100 WHITEHOUSE STATION, NJ 08889-0100 USA Phone: 908-423-4840 Fax: 908-298-7082 Website: http://http://www.merck.com Full Time Employees: 94,000 Sector: Medical

Company Profile Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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