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What Analysts Are Expecting from Pfizer and Merck in June

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The better pick

Pfizer (PFE) is down 4.88%, and Merck & Co. (MRK) is up 3.66% YTD (year-to-date) in 2019. Both companies have certain driving factors that can make them attractive to investors. To evaluate which of the two is a better pick in the long run, let’s take a look at the various pros and cons of both.

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Analysts’ recommendations and target price

The consensus recommendations for both Pfizer and Merck are “buys.”

Wall Street analysts expect an upside of 9.30% for Pfizer based on the company’s closing price on May 31. Analysts have gradually increased the company’s 12-month consensus target price from $44.14 in February to $44.36 in March, $45.00 in April, and $45.38 in May.

Of the 15 analysts covering Pfizer, two have given it “strong buys,” six have given it “buys,” and six have given it “holds.”

Wall Street analysts expect an upside of 12.27% for Merck based on the company’s closing price on May 31. Analysts have gradually increased the company’s 12-month consensus target price from $85.52 in February to $86.64 in March, $88.07 in April, and $88.93 in May.

Of the 17 analysts covering Merck, six have given it “strong buys,” nine have given it “buys,” and two have given it “holds.”

Share price movements and valuation

On May 31, Pfizer closed at $41.52, 0.91% lower than its previous close, 16.20% higher than its 52-week low of $35.73, and 10.65% lower than its 52-week high of $46.47. The company’s market cap was $233.97 billion, and its PE, forward PE, PEG (PE-to-growth), PS (price-to-sales), PB (price-to-book), and PC (price-to-cash) ratios were 22.99x, 13.57x, 4.80x, 4.34x, 3.98x, and 20.14x, respectively.

On May 31, Merck closed at $79.21, 0.59% lower than its previous close, 33.55% higher than its 52-week low of $59.31, and 5.53% lower than its 52-week high of $83.85. The company’s market cap was $204.76 billion, and its PE, forward PE, PEG, PS, PB, and PC ratios were 24.95x, 14.93x, 2.56x, 4.75x, 7.44x, and 23.27x, respectively.

Compared to Pfizer, Merck is trading at higher PE, forward PE, PS, PB, and PC ratios but at a lower PEG ratio.

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