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Company name Merck & Co., Inc.
Stock ticker MRK
Live stock price [stckqut]MRK[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $90.67
Target stock price (averages with growth) $76.6
Target stock price (averages with no growth) $36.24
Target stock price (manual assumptions) $72.61

The following company description is from Google Finance: http://www.google.com/finance?q=mrk

Merck & Co., Inc. is a global health care company. The Company offers health solutions through its prescription medicines, vaccines, biologic therapies and animal health products, which it markets directly and through its joint ventures. The Company’s Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the Company or through joint ventures. Human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company sells these human health pharmaceutical products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers. The Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines. The Company’s animal health products are sold to veterinarians, distributors and animal producers.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Merck & Co., Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Merck & Co., Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $58.63
  • Growth: 0.15
  • Current EPS (TTM): $3.42
  • P/E: 17
  • Future EPS Calc: $6.87
  • Future Stock Price Calc: $116.94
  • Target stock price: $72.61

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I hope that this makes you a Confident Investor.

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Just a few companies are driving the gains in major U.S. stock indexes this year, raising fresh concerns about the health of the market’s advance.

Six firms— Amazon.com Inc. [stckqut]AMZN[/stckqut], Google Inc. [stckqut]GOOG[/stckqut], Apple Inc. [stckqut]AAPL[/stckqut], Facebook Inc. [stckqut]FB[/stckqut], Netflix Inc. [stckqut]NFLX[/stckqut] and Gilead Sciences Inc.[stckqut]GILD[/stckqut] —now account for more than half of the $664 billion in value added this year to the Nasdaq Composite Index, according to data compiled by brokerage firm JonesTrading.

Amazon, Google, Apple, Facebook, Gilead and Walt Disney Co. [stckqut]DIS[/stckqut] account for more than all of the $199 billion in market-capitalization gains in the S&P 500.

The concentrated gains are spurring concerns that soft trading in much of the market could presage a pullback in the indexes. Many investors see echoes of prior market tops—including the 2007 peak and the late 1990s frenzy—when fewer and fewer stocks lifted the broader market. The S&P 500 is up 1% this year while the Nasdaq has gained 7.4%.

Source: The Only Six Stocks That Matter