Merck & Co., Inc.'s (NYSE:MRK) Dismal Stock Performance Reflects Weak Fundamentals

Category: Finance

Merck's stock has declined 3.7% over the past three months, with a return on equity (ROE) of 5.7%, significantly below the industry average of 22%. The company's earnings have been shrinking, and its high payout ratio of 110% indicates it is depleting resources to maintain dividend payments. Analysts expect an improvement in ROE to 39% as the payout ratio drops to 32% over the next three years, but caution is advised due to the current unsatisfactory performance.

Keywords: Merck, Return on Equity, Earnings Growth

Source: Yahoo Finance

Update At: 7/30/2024

Related Sources

CrowdStrike, Microsoft and American Express fall premarket, Netflix gains

U.S. stock futures showed mixed results as major tech stocks faced a rotation. Notable premarket movers included Netflix, which rose 0.5% after strong subscriber growth, while CrowdStrike fell 10% due to a software update causing IT outages. Microsoft and American Express also saw declines, while Schlumberger and Arm Holdings experienced gains.

Baystreet.ca

Trending tickers: latest investor updates on Microsoft, Netflix, Domino’s Pizza and Hargreaves Lansdown

Shares in major companies like Microsoft and Netflix faced fluctuations due to technical issues and mixed earnings reports. Microsoft is investigating a significant outage affecting its services, while Netflix reported subscriber growth but anticipates a slowdown. Domino's Pizza shares dropped after disappointing Q2 results, and Hargreaves Lansdown saw record assets under administration amid ongoing acquisition talks.

Yahoo Finance UK

5 Things to Know Before the Stock Market Opens

CrowdStrike shares drop 12% due to a global computer outage linked to an update issue, affecting Microsoft and leading to flight disruptions for major airlines. Netflix sees a rise in shares after exceeding earnings expectations despite lower guidance. Hawaiian Electric shares surge 37% following a settlement over Maui fire lawsuits, while American Express shares decline on a revenue miss despite raising EPS outlook.

Investopedia

5 things to know before the stock market opens Friday

A global cyber outage has disrupted airlines and banks, while major stock indices fell as investors moved away from big tech. Netflix reported strong subscriber growth, and Amazon Prime Day saw record online spending. Democratic donors are pressuring Biden regarding the 2024 race amid concerns over his performance.

NBC 6 South Florida

Stocks Struggle as Tech Outages Hit Businesses: Markets Wrap

Global equities faced challenges due to widespread computer system outages affecting travel, trading, and banking, leading to significant drops in technology stocks. Cybersecurity firm Crowdstrike saw a 21% decline after software issues caused crashes. Despite some recovery in index contracts, the tech-heavy Nasdaq dropped over 3% for the week. Analysts suggest that market losses from the outages may be temporary, with potential opportunities for investors amidst sector rotations and upcoming interest rate cuts.

Yahoo Finance

European markets fall amid global IT outage; investors digest ECB decision

European markets declined on Friday, influenced by the ECB's interest rate decision and a global IT outage related to CrowdStrike. The Stoxx 600 index fell 0.44%, with travel and leisure stocks dropping 1.99% and mining stocks down 1.84%. This marks a continued downward trend, with the index closing lower for four consecutive days.

CNBC

Morning Bid: Markets strap in for a bumpy ride

Investors face a turbulent week marked by a tech selloff due to Sino-U.S. trade tensions and uncertainty surrounding U.S. politics. The attempted assassination of Donald Trump has heightened market fears, reflected in a spike in the VIX index. Asian shares struggle as technology stocks decline, and TSMC faces its worst weekly decline amid concerns over U.S. chip policies. The dollar gains safe haven support, while central banks signal potential rate cuts. UK retail sales are expected to be weak due to adverse weather, and China's economic goals reveal contradictions that may complicate policy implementation.

Yahoo Finance

Morning bid-Markets strap in for a bumpy ride

Investors face a turbulent week marked by a tech selloff due to Sino-U.S. trade tensions and uncertainty surrounding U.S. politics. The attempted assassination of Donald Trump has heightened market fears, reflected in a spike in the VIX index. Asian shares struggle as technology stocks decline, and TSMC faces its worst weekly decline amid concerns over U.S. chip policies. The dollar gains safe haven support, while central banks signal potential rate cuts. UK retail sales are expected to be weak due to adverse weather, and China's economic goals reveal contradictions that may complicate policy implementation.

marketscreener.com

Stocks making the biggest premarket moves: CrowdStrike, American Express, SLB, Travelers and more

CrowdStrike shares fell nearly 13% due to a major IT outage affecting global businesses. Microsoft also experienced a 1.6% decline from the outage. American Express reported second-quarter revenue below expectations but raised its EPS guidance. Comerica's shares dropped 9% despite better-than-expected net interest income. SLB's shares rose 1.4% after beating earnings estimates. Arm Holdings gained nearly 3% following an upgrade, while Intuitive Surgical shares increased 5.7% after strong quarterly results. Travelers' shares edged up 2% despite mixed results, and Plug Power's stock tumbled 14% after announcing a stock sale.

CNBC

ZRC Wealth Management LLC Sells 1,969 Shares of Microsoft Co. (NASDAQ:MSFT)

ZRC Wealth Management LLC reduced its Microsoft stake by 21.7%, holding 7,122 shares valued at $2,997,000. Other investors also increased their positions in Microsoft, with institutional ownership at 71.13%. Analysts maintain a positive outlook, with a consensus rating of 'Moderate Buy' and a target price of $474.72. Microsoft reported strong quarterly earnings, beating estimates with $2.94 EPS and $61.86 billion in revenue, up 17% year-over-year. A quarterly dividend of $0.75 per share is set for September 12th.

American Banking and Market News