Merck Stock Slumps Ahead Of Q1 Earnings: Can Bulls Find Relief In Buying Pressure?

Core Viewpoint - Merck & Co Inc is set to report its first-quarter earnings, with Wall Street anticipating earnings per share of $2.14 and revenue of $15.33 billion, amidst a significant decline in stock performance over the past year [1] Stock Performance - Merck's stock has decreased by 38.04% over the past year and 20.73% year-to-date, with a 14.85% drop in the last month, making it one of the worst performers among major pharmaceutical companies [1] - As of the latest publication, Merck's stock was trading at $78.68, down 0.37% [5] Technical Analysis - The stock is currently in a bearish trend, trading below its five-, 20-, and 50-day exponential moving averages, indicating a strong bearish sentiment [2] - The eight-day simple moving average (SMA) is at $78.32, providing a short-term bullish signal, but the 20-day SMA at $82.12 and the 50-day SMA at $87.48 indicate ongoing bearish conditions [3] - The 200-day SMA is significantly higher at $102.90, and momentum indicators such as the MACD at -3.36 and RSI at 36.36 suggest the stock is nearing oversold territory [3] Analyst Ratings and Consensus - Despite the bearish outlook, analysts maintain a Buy consensus rating for Merck, with a mean price target of $121, indicating a potential upside of 29.41% from current levels [5] - Recent ratings from Cantor Fitzgerald, Guggenheim, and Deutsche Bank average a target of $101.67, further supporting the potential for recovery [5]