What Happened?

Shares of global pharmaceutical company Merck (NYSE:MRK) fell 11% in the morning session after the company reported mixed fourth-quarter earnings. Its full-year revenue and EPS guidance missed by a long shot. The company blamed some of the softness on rising competition and weak demand in China. On the other hand, Merck blew past analysts' constant currency revenue expectations this quarter, and its EPS outperformed Wall Street's estimates. Overall, this was a softer quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Merck? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Merck’s shares are not very volatile and have only had 1 move greater than 5% over the last year. Moves this big are rare for Merck and indicate this news significantly impacted the market’s perception of the business.

Merck is down 10% since the beginning of the year, and at $89.28 per share, it is trading 32.9% below its 52-week high of $132.96 from June 2024. Investors who bought $1,000 worth of Merck’s shares 5 years ago would now be looking at an investment worth $1,010.

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