Stock Research Report for MRK as of 9/8/11 - Chaikin Power Tools

Page 1

Merck & Co Inc (MRK)

Price: $32.93

Industry: Drugs Chaikin Power Gauge Report | Generated: Thu Sep 08 17:09 EDT 2011 MRK Merck & Co Inc

$32.93

Power Gauge Rating

MRK - Neutral TM

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.

Financial Metrics

Expert opinions about MRK are very positive which is evidenced by a very low short interest ratio.

Earnings Performance

MRK's earnings performance is weak as a result of a relatively poor trend in earnings this year.

Price/Volume Activity

Expert Opinions

Despite these bullish factors, Chaikin Power Tools has identified a negative trend resulting in a neutral rating.

News Sentiment Rating

Neutral MRK Merck & Co Inc

August 24, 2011

TM

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

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.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Neutral

LT Debt/Equity Ratio

MRK's financial metrics are neutral. The company has high revenue per share and is carrying too much long term debt.

Price to Book Value

The rank is based on a high long term debt to equity ratio, low price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

Current Ratio

2.05

Price/Book

1.76

Return on Invest

15.4%

LT Debt/Equity

0.27

Price/Sales

2.21

Return on Equity

19.5%

Earnings Performance

TTM

Earnings Performance Rating

Bearish

Earnings Growth

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.

Earnings Surprise

Earnings Trend

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.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/06

12/07

12/08

12/09

12/10

22,636.00

24,197.70

23,850.30

27,428.30

45,987.00

2.84%

6.90%

-1.44%

15.00%

67.66%

$2.03

$1.49

$3.64

$5.65

$0.28

-3.33%

-26.60%

144.30%

55.22%

-95.04%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.11

$0.90

+0.79

Quarterly EPS Yearly EPS Factor

$0.28

$3.73

+3.45

Actual EPS Growth

Est EPS Growth

Change

18.19%

3.25%

-14.94

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Latest Qtr

$0.95

$0.95

$0.00

1 Qtr Ago

$0.84

$0.92

$0.08

2 Qtr Ago

$0.83

$0.88

3 Qtr Ago

$0.83

$0.85

0.00

12/09

$0.68

$0.74

9.52

12/10

$0.09

$0.24

$0.05

6.02

12/11

$0.34

$0.65

$0.02

2.41

Fiscal Year End Month is December.

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Qtr 4

Total

$1.61

$2.35

$5.38

$0.11

$-0.17

$0.27

-

-

-

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bullish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for MRK is bullish. MRK has outperformed the S&P 500 over 26 weeks and has a rising price trend.

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.

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

Price Activity

Volume Activity

Factor

Value

Factor

52 Week High

37.58

% Change Price - 4 Weeks

10.57%

Average Volume 20 Days

16,385,914

52 Week Low

29.81

% Change Price - 24 Weeks

1.01%

Average Volume 90 Days

15,104,853

% Change Price - 4 Wks Rel to S&P

3.38%

Chaikin Money Flow Persistency

% Change Price - 24 Wks Rel to S&P

9.35%

% Change YTD Rel S&P 500

-3.78%

Expert Opinions

Value

Factor

Value

34%

Expert Opinions

Very Bullish

Earnings Estimate Revisions

Expert opinions about MRK are very positive. Shorting of MRK is low and analysts's opinions on MRK have been more positive recently.

Short Interest

Insider Activity

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.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.90 0.96 Current

Current FY

3.73

Analyst Recommendations

7 Days Ago % Change 0.90 0.96

0.00% 0.00%

30 Days Ago % Change 3.73

0.00

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

0

0

Curr Yr

0

0

0

2

Next Qtr

0

0

0

0

Next Yr

0

0

0

2

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for MRK

MRK's Competitors in Drugs Company

Power Gauge

Orasure Technologies reports second-quarter loss - Aug 4, 2011

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

MRK

18.19%

3.25%

6.13%

2.72

9.16

45,987

FeminaPharma NuvaRing 08 02 - Aug 2, 2011

JNJ

4.21%

6.00%

18.32%

2.20

13.38

61,587

Merck's Wilson plant adding jobs - Aug 1, 2011

NVS

9.55%

4.71%

18.05%

2.16

10.62

50,624

Earnings Preview: Bristol-Myers reports 2Q results - Jul 26, 2011

PFE

6.66%

4.00%

12.78%

2.12

8.60

67,809

SNY

4.26%

1.30%

16.81%

5.61

8.76

41,395

GSK

3.26%

4.82%

11.92%

2.36

11.70

45,905

Femina NuvaRing 07 20 - Jul 20, 2011

Company Details

Company Profile

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

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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