MRK stock verdict - Avoid
MRK
Merck & Company, Inc.
AVOIDHealthcare
$131.07
Fundamentals below bar
$131.07
Heavy$69.53Buy$92.71Fair$115.89Exit$139.06
FUNDAMENTAL41
TECHNICAL100
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Uptrend · EMA20 125.77 · EMA50 122.32 · EMA200 112.0 · RSI 62.0 · MACD above signal
PROS
- Reasonable forward P/E of 13.6× on analyst estimates
- Strong return on equity of 18.1% (TTM)
- Converts 21% of revenue into free cash flow
- High gross margin of 75% (3-yr avg)
- Price is in an uptrend — above key moving averages with positive momentum
CONS
- Expensive on trailing earnings (P/E 36.9×)
- Rich for its growth rate (PEG 2.8)
- TTM EPS fell 48.3% year-over-year
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 90% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
SECTOR PEERS
Analysis as of 2026-07-27 · price live, fundamentals from latest filings
FAQ
Why is MRK rated Avoid?
MRK (Merck & Company, Inc.) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Fundamentals below bar. Reasonable forward P/E of 13.6× on analyst estimates and Strong return on equity of 18.1% (TTM)
Is MRK overvalued right now?
MRK is trading at $131.07 versus an estimated fair value of $115.89. That puts the stock in avoid territory on this framework. Expensive on trailing earnings (P/E 36.9×) and Rich for its growth rate (PEG 2.8)
What should I watch before acting on MRK?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Expensive on trailing earnings (P/E 36.9×) and Rich for its growth rate (PEG 2.8)