Merck & Co Inc (MRK) Price: $32.93

Industry: DrugsChaikin Power Gauge Report | Generated: Thu Sep 08 17:09 EDT 2011

Merck & Co Inc

MRK$32.93

Expert Opinions

Price/Volume Activity

Earnings Performance

Financial Metrics

Power Gauge Rating

MRK Merck & Co Inc

News Sentiment :Neutral

August 24, 2011

News Sentiment Rating

Neutral

Chaikin Sentiment GaugeTM

for MRK is neutral. Stories concerning MRK have abalanced or neutral sentiment.

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential. High Potential Neutral Low Potential

MRK - Neutral

The Chaikin Power Gauge RatingTM

for MRK is neutral with average financialmetrics, weak earnings performance, bullish price/volume activity and verypositive expert opinions.

Expert opinions about MRK are very positive which is evidenced by a very lowshort interest ratio.

MRK's earnings performance is weak as a result of a relatively poor trend inearnings this year.

Despite these bullish factors, Chaikin Power Tools has identified a negativetrend resulting in a neutral rating.

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Financials & Earnings

Business Value

Price to Sales Ratio

Return on Equity

Price to Book Value

LT Debt/Equity Ratio

Financial Metrics Financial Metrics Rating

Assets and Liabilities Valuation Returns

Neutral

MRK's financial metrics are neutral. The company has high revenue per shareand is carrying too much long term debt.

The rank is based on a high long term debt to equity ratio, low price to sales ratioand relatively low cash flow.

Ratio TTM

Current Ratio 2.05

LT Debt/Equity 0.27

Ratio TTM

Price/Book 1.76

Price/Sales 2.21

Ratio TTM

Return on Invest 15.4%

Return on Equity 19.5%

Earnings Consistency

Projected P/E Ratio

Earnings Trend

Earnings Surprise

Earnings Growth

Earnings Performance Earnings Performance Rating

5 Year Revenue and Earnings Growth EPS Estimates

EPS Surprise EPS Quarterly Results

Bearish

MRK's earnings performance has been weak. The company experiencedrelatively poor earnings growth in the past 12 months and is priced relatively highcompared to next year's projected EPS.

The rank is based on high earnings growth over the past 3-5 years, a relativelypoor trend in earnings this year, a relatively high projected P/E ratio andconsistent earnings over the past 5 years.

12/06 12/07 12/08 12/09 12/10

Revenue(M) 22,636.00 24,197.70 23,850.30 27,428.30 45,987.00

Rev % Growth 2.84% 6.90% -1.44% 15.00% 67.66%

EPS $2.03 $1.49 $3.64 $5.65 $0.28

EPS % Growth -3.33% -26.60% 144.30% 55.22% -95.04%

Factor Actual EPS Prev EST EPS Current Change

Quarterly EPS $0.11 $0.90 +0.79

Yearly EPS $0.28 $3.73 +3.45

Factor Actual EPS Growth Est EPS Growth Change

3-5 year EPS 18.19% 3.25% -14.94

Estimate Actual Difference % Difference

Latest Qtr $0.95 $0.95 $0.00 0.00

1 Qtr Ago $0.84 $0.92 $0.08 9.52

2 Qtr Ago $0.83 $0.88 $0.05 6.02

3 Qtr Ago $0.83 $0.85 $0.02 2.41

FY Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total

12/09 $0.68 $0.74 $1.61 $2.35 $5.38

12/10 $0.09 $0.24 $0.11 $-0.17 $0.27

12/11 $0.34 $0.65 - - -

Fiscal Year End Month is December.

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Price Trend & Expert Opinions

Volume Trend

Price Trend ROC

Price Trend

Chaikin Money Flow

Relative Strength vs Market

Price/Volume Activity Price/Volume Activity Rating

Relative Strength vs S&P500 Index

Chart shows whether MRK is performing better or worse than the market.

Chaikin Money Flow

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity Price Activity Volume Activity

Bullish

Price and volume activity for MRK is bullish. MRK has outperformed the S&P 500over 26 weeks and has a rising price trend.

The rank for MRK is based on its price strength versus the market, negativeChaikin money flow, a positive Chaikin price trend, a negative Chaikin price trendROC and an increasing volume trend.

Factor Value

52 Week High 37.58

52 Week Low 29.81

% Change YTD Rel S&P 500 -3.78%

Factor Value

% Change Price - 4 Weeks 10.57%

% Change Price - 24 Weeks 1.01%

% Change Price - 4 Wks Rel to S&P 3.38%

% Change Price - 24 Wks Rel to S&P 9.35%

Factor Value

Average Volume 20 Days 16,385,914

Average Volume 90 Days 15,104,853

Chaikin Money Flow Persistency 34%

Relative Strength vs Industry

Analyst Opinions

Insider Activity

Short Interest

Earnings Estimate Revisions

Expert Opinions Expert Opinions

Earnings Estimate Revisions Analyst Recommendations EPS Estimates Revision Summary

Very Bullish

Expert opinions about MRK are very positive. Shorting of MRK is low andanalysts's opinions on MRK have been more positive recently.

The rank for MRK is based on a low short interest ratio, insiders purchasingstock, optimistic analyst opinions and price strength of the stock versus the Drugsindustry group.

Current 7 Days Ago % Change

Current Qtr 0.90 0.90 0.00%

Next Qtr 0.96 0.96 0.00%

Current 30 Days Ago % Change

Current FY 3.73 3.73 0.00

Factor Value

Mean this Week Buy

Mean Last Week Buy

Change 0.00

Mean 5 Weeks Ago Buy

Last Week Last 4 Weeks

Up Down Up Down

Curr Qtr 0 0 0 0

Curr Yr 0 0 0 2

Next Qtr 0 0 0 0

Next Yr 0 0 0 2

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The Company & Its Competitors

MRK's Competitors in Drugs

Company Power Historic EPS Projected EPS Profit Margin PEG PE Revenue(M)Gauge growth growth

MRK 18.19% 3.25% 6.13% 2.72 9.16 45,987

JNJ 4.21% 6.00% 18.32% 2.20 13.38 61,587

NVS 9.55% 4.71% 18.05% 2.16 10.62 50,624

PFE 6.66% 4.00% 12.78% 2.12 8.60 67,809

SNY 4.26% 1.30% 16.81% 5.61 8.76 41,395

GSK 3.26% 4.82% 11.92% 2.36 11.70 45,905

News Headlines for MRK

Orasure Technologies reports second-quarterloss - Aug 4, 2011

FeminaPharma NuvaRing 08 02 - Aug 2, 2011

Merck's Wilson plant adding jobs - Aug 1, 2011

Earnings Preview: Bristol-Myers reports 2Qresults - Jul 26, 2011

Femina NuvaRing 07 20 - Jul 20, 2011

Company Details Company Profile

MERCK & CO INCONE MERCK DRIVE P.O. BOX100WHITEHOUSE STATION, NJ08889-0100USAPhone: 908-423-4840Fax: 908-298-7082Website:http://http://www.merck.comFull Time Employees: 94,000Sector: Medical

Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated toputting patients first. Established in 1891, Merck discovers, develops, manufactures andmarkets vaccines and medicines to address unmet medical needs. The company devotesextensive efforts to increase access to medicines through far-reaching programs that notonly donate Merck medicines but help deliver them to the people who need them. Merckalso publishes unbiased health information as a not-for-profit service.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculatedby evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is thestrongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe.

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LM 2.3 DS 3.0 LS 2.1

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