Analysis

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MRK
Sep 12, 2020, 2:29 PM GMT
#Stocks

Merck & Co., The Sleeping Giant of the Pharmaceuticals Industry

The analysis for today examines the price action of Merck & Co. The company is one of the largest pharmaceutical giants in the world, but its share price has remained somewhat undervalued in the recovery that followed the initial coronavirus fallout in Q1.

Special attention was given to the pharmaceuticals sector in the aftermath of the initial stock market crash, given the crucial role it is going to play in the struggle against the virus. From the ongoing vaccine research to the development of a treatment drug for COVID-19, pharmaceutical companies have been placed in the limelight in the fight against the coronavirus crisis.

Even still, Merck's share price did not gain considerable bullish momentum during these tumultuous times. Part of the explanation as to why this is the case stems from the fact that Merck & Co. does not participate actively in the R&D process of a SARS-Cov-2 vaccine, nor does it strive to develop a drug for treating COVID-19.

The company's stock has depreciated by 0.17 per cent in the last six months. Accordingly, the share price of Merck has advanced by 5.53 per cent in the previous three months and just 1.30 per cent over the last month. What these numbers imply is that the company's stock has barely managed to recover from the initial coronavirus hit, and has started gaining positive momentum only in the last several months.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
0 1.19 USD 0 0
-1.43%
Short Term
+ -
0 1.19 USD
Long Term
+ -
0 0
Net % Gains
-1.43%

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