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Mercer International (MERC) Gains As Market Dips: What You Should Know

Zacks Equity Research
·2-min read

Mercer International (MERC) closed at $13.65 in the latest trading session, marking a +1.19% move from the prior day. This move outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.15%, and the tech-heavy Nasdaq gained 0.37%.

Prior to today's trading, shares of the pulp company had lost 16.06% over the past month. This has lagged the Basic Materials sector's gain of 1.01% and the S&P 500's loss of 3.51% in that time.

Wall Street will be looking for positivity from Mercer International as it approaches its next earnings report date. This is expected to be October 27, 2022. On that day, Mercer International is projected to report earnings of $1.05 per share, which would represent year-over-year growth of 0.96%.

It is also important to note the recent changes to analyst estimates for Mercer International. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Mercer International is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Mercer International is holding a Forward P/E ratio of 3.32. Its industry sports an average Forward P/E of 6.18, so we one might conclude that Mercer International is trading at a discount comparatively.

The Paper and Related Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MERC in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research