A Careful Analysis Of Merck & Co., Inc. (MRK), Transocean Ltd. (RIG)

The shares of Merck & Co., Inc. (NYSE:MRK) dropped by -0.77% or -$0.63 from its last recorded high of $82.12 which it attained on April 03 to close at $81.49 per share. Over the past 52 weeks, the shares of Merck & Co., Inc. has been trading as low as $52.83 before witnessing a massive surge by 54.25% or $28.66. This price movement has led to the MRK stock receiving more attention and has become one to watch out for. It dipped by -0.13% on Thursday and this got the market worried. The stock’s beta now stands at 0.65 and when compared to its 200-day moving average and its 50-day moving average, MRK price stands 14.87% above and 5.26% above respectively. Its average daily volatility for this week is 1.23% which is less than the 1.25% recorded over the past month.

Merck & Co., Inc. (MRK) rose 1.29% this week, a trend that has led to both investors and traders taking note of the stock. Over the past one year, the equity price has embarked on a rally that has seen it rise 47.17% and is now up by 6.65% since start of this year. A look at its monthly performance shows that the stock has recorded a 3.78% gain over the past 30 days. Its equity price climbed by 5.68% over the past three months which led to its overall six-month increase to stand at 17.96%.

Experts from research firms are bullish about the near-term performance of Merck & Co., Inc. with most of them predicting a $85.52 price target on a short-term (12 months) basis. The average price target by the analysts will see a 4.95% rise in the stock and would lead to MRK’s market cap to surge to $222.35B. The stock has been rated an average 1.8, which roughly stands towards the bullish end of the spectrum. Reuters looked into the 16 analysts that track Merck & Co., Inc. (NYSE:MRK) and find out that 2 of them rated it as a Hold. 14 of the 14 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

A look at MRK technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 64.29 point. Its trading volume has lost -4832001 shares compared to readings over the past three months as it recently exchanged 7497999 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 12330000 shares, and this is 0.61 times the normal volume.

The price of Transocean Ltd. (NYSE:RIG) currently stands at $9.04 after it went down by $-0.07 or -0.77% and has found a strong support at $8.95 a share. If the RIG price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $8.87 mark would also be bad for the stock as it means that the stock would plunge by 1.88% from its current position. However, if the stock price is able to trade above the resistance point around $9.16, then it could likely surge higher to try and break the upward resistance which stands at $9.29 a share. Its average daily volatility over the past one month stands at 3.93%. The stock has plunged by 0.55% from its 52-weeks high of $8.99 which it reached on Sep. 10, 2018. In general, it is 31.53% above its 52-weeks lowest point which stands at $6.19 and this setback was observed on Dec. 26, 2018.

Analysts have predicted a price target for Transocean Ltd. (RIG) for 1 year and it stands at an average $11.84/share. This means that it would likely increase by 30.97% from its current position. The current price of the stock has been moving between $8.99 and $9.2. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $7. On the other hand, one analyst is super bullish about the price, setting a target as high as $30.

The RIG stock Stochastic Oscillator (%D) is at 77.83%, which means that it is currently neutral. The shares P/S ratio stands at 1.89 which compares to the 2.16 recorded by the industry or the 10.25 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 0, which is lower than the 0 multiple of 12-month price-earnings (P/E). The company’s earnings have gone down, with a quarterly decrease rate of -25.1% over the past five years.

Analysts view Transocean Ltd. (NYSE:RIG) as a Hold, with 2.2 consensus rating. Reuters surveyed 32 analysts that follow RIG and found that 6 of those analysts rated the stock as a Hold. The remaining 26 were divided, with 23 analyst rating it as a Buy or a Strong Buy while 3 analysts advised investors to desist from buying Transocean Ltd. (RIG) shares or sell it if they already own it.