
NYSE:MRK
Chart shows a long, long sideways market followed by an outstanding pop. Chart is showing a parabolic move but the trend is up. Typically when a stock moves quite a bit off a trend line, be prepared that it could return to the trend line. If you are a longer-term investor, stay with the story as long as it doesn’t break the trend line.
Trading at about 12X earnings which is not really expensive. Has over 3% dividend. The problem is that most people don’t expect the earnings to grow and are actually going to decline over the next few years. Would prefer Abbot Labs (ABT-N) or Teva Pharmaceuticals (TEVA-N).