NYSE:MRK

Merck & Company (MRK)

130.20
+0.41 (0.32%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconAug 2, 2026, 12:00 am

This summary was created by AI, based on 23 opinions in the last 12 months.

Merck & Company (MRK) is recognized for its strong performance, particularly bolstered by its cancer treatment drug, Keytruda, which is a significant revenue driver but faces a looming patent cliff. Despite concerns regarding the future of Keytruda, many experts are optimistic about the company's robust drug pipeline and strategic acquisitions that should help mitigate the risks associated with the loss of this key drug. The consensus among analysts suggests solid revenue growth potential, with expectations that the company will release a considerable number of new drugs by 2030. Additionally, Merck is committed to returning capital to shareholders, which includes stock buybacks and steady dividends, positioning the company as a quality investment in the healthcare sector.

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Consensus
Positive
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Valuation
Undervalued
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Similar
Pfizer, PFE
BUY
Every Canadian should have exposure to health care and it is very hard to get this in Canada. Not his favourite name but you can’t go too far wrong. Earnings are finally recovering. Good dividend growth. There is a lack of new drugs, but they will come, over time.
PAST TOP PICK
(Top Pick Feb 17/11, Up 21.55%) Still likes it.
DON'T BUY
Still relatively inexpensive. They are in restrained growth at this point. Has come off recently because all of the pharmas had a pretty strong year last year and people are shifting into the more resource stocks. It's a defensive stock so there is slower growth.
BUY
Pharma: The trend is really looking quite good. Hasn’t looked at Merck in a while. There was a time when it was 0% return for 10 years. Now, it is in the right sector and it is moving.
PAST TOP PICK
(A TOP PICK Feb 17/11. Up 21.17%.) Still likes but doesn't see as much upside this year.
BUY
An attractive buy. He prefers Abbott Labs (ABT-N), which has growing earnings and is diversified into other products such as medical devices, pharmaceuticals and nutritionals. Terrific dividend. Starting to get attention from value investors.
DON'T BUY
Bit of a poster boy for the whole pharma industry. Something like a leaky boat in that you are rowing and making progress, but constantly bailing. Because of patent expiration, it is very difficult for these companies to create a growth profile.
COMMENT
Has started buying into this sector on the ones that are trading at 10X multiples.
TOP PICK
Model price is $50.75, a 40% upside. Came up 8%-10% in the last couple of weeks, but still has a long ways to go. 4.2% dividend.
TOP PICK
Market was very disappointed in their earnings. Trading at less than 9X earnings. Yield of 4.61%. The model price is $50.15, a 52% upside. It is now all about cost control with these companies. There is huge consolidation in the industry.
WAIT
Recently dropped because they dropped trials of a blood thinner, one of the biggest products in their pipeline. He doesn’t know if this means there will be no sales from this product. He would look seriously at it if it based out at this level. He likes this one and it is reasonable at these levels. He has a small position and is looking to accumulate.
DON'T BUY
Trades at a good multiple but prefers Abbott Labs (ABT-N) because of their pipeline. Growth estimates are only 6%-7% a year.
DON'T BUY
Fine company and reasonably valued but not as cheap as others that he owns. Decent dividend but not anything he would rush into. Still a little uncertainty over the healthcare sector and particularly with this one's pipeline area. Consider Abbott Labs (ABT-N), which has more growth potential.
COMMENT
Took over Schering-Plough in 2009, which expanded their pipeline of pharmaceuticals, drugs, etc. Pays about 4% yield so likes it from an income standpoint. With a 40% payout ratio dividend is relatively safe. Might not give you growth that you would like. If you think economy is going to grind higher, health care is not a sector to be in.
PAST TOP PICK
(A Top Pick Aug 19/09. Up 15.9%.) Merged with Schering-Plough and the combination produced a pipeline that is incomparable in the Pharma sector. Will have sustainable growth for many years to come.
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