NYSE:MRK

Merck & Company (MRK)

119.60
+0.08 (0.07%)
as of Jun 9, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 9, 2026, 12:00 am

This summary was created by AI, based on 21 opinions in the last 12 months.

Merck & Company (MRK) is widely recognized for its robust drug pipeline, particularly in the oncology space, despite concerns surrounding the impending patent expiration of its blockbuster drug Keytruda in 2028, which currently accounts for a significant portion of its revenue. Experts express mixed sentiments on its future performance; while some highlight the strong growth prospects from various drugs in the pipeline and strategic acquisitions, others point to risks and valuation concerns in light of the upcoming patent cliff. Analysts have shown optimism regarding MRK's capacity to sustain revenue growth post-Keytruda, often citing its decent dividend yield and potential for substantial upside. Overall, the company has been recommended as a solid investment, with a call for cautious management of positions amid broader market uncertainty and clarity on US drug pricing affecting the pharmaceutical sector.

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Consensus
Bullish
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Valuation
Undervalued
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Similar
Pfizer, PFE
BUY
Large-cap pharmaceuticals are probably the best valuation out there. Their recent merger is all done. An excellent buy at this level.
DON'T BUY
Patent expirations is a problem with all Pharma plays and pure pharmaceuticals are in a difficult position.
COMMENT
Dividend of around 5%. Cash rich so not concerned about a short-term cash burn. The rate of drugs that big pharma can bring to market is slowing down. Could be $36 in 12 months but if you're not happy with that you should look elsewhere.
SELL
Finalizing the merger with Schering-Plough (SGP-N). Good dividend yield and low PE ratio, which is a value trap because of huge headwinds ahead of them as drugs go off patent protection. Growth will be difficult. Prefers Johnson & Johnson (JNJ-N) because of the medical devices and consumer healthcare. Also Abbott Labs (ABT-N) would be another consideration.
COMMENT
Pharmaceutical. More disciplined approach so they've been generating very strong free cash flow. A couple of their strong drugs will be coming off patent in a couple of years. In the process of merging with Schering-Plough (SGP-N). If you were going to pick a name, he would prefer Abbott (ABT-N). 5% dividend yield.
TOP PICK
Merging with Schering-Plough (SGP-N). Combination will create a very strong pipeline of products, which for many years will have a good growth profile. It will merge short to mid cycle products with longer-term type products and thinks there are significant synergy type benefits. You could also own Schering-Plough, which is a discounted way of playing this. (See also SGP-N.)
DON'T BUY
Has opportunities as a defensive stock. There is significant government regulation coming. There will likely be price controls. There is some risk. Might buy for the dividend.
BUY
Prefers Pfizer (PFE-N) even though in the near term this company has outperformed them. If you are looking to own a pharmaceutical, this is a fine name.
DON'T BUY
Model price is $48.07, a negative 7.5% differential.
PAST TOP PICK
(A Top Pick Sept 13/06. Up 7.3%.) Pharmaceutical stocks fit in the theme of large cap capital growth. Expect this to be a good stock this year without a lot of risk.
TOP PICK
The company went through a lot of bad news over the last four months but in the last 3 quarters there has been a re-acceleration in their growth rate. Trades at a very reasonable multiple.
WEAK BUY
Likes the sector. The names have been incredibly punished in the last few years. They still look cheap. This one had additional problems with Viox, but is recovering nicely. Wouldn't be his first pick.
BUY
All the major drug stocks are starting to act better. In this type of market, money moves from risky stocks to defensive stocks. A good place to be.
BUY
Great dividend yield. Probably one of the worst performing sectors in the S&P. Lots of cost cutting opportunities. Trading at around 8/9 X earnings. Pristine balance sheet.
DON'T BUY
Prefers Pfizer which has been doing more things correctly.
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