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
PAST TOP PICK
(A Top Pick May 15/09. Up 46.13%.) (Think this should be Aug 19 and up 12.2%, not May 15 as BNN shows. Bill) Starting to trim out of this one.
DON'T BUY
3rd largest pharmaceutical behind Johnson & Johnson (JNJ-N) and Pfizer (PFE-N). We are in an economic recovery and if this continues and there is no double dip, health-care stocks and consumer staples won't necessarily be your best performers.
DON'T BUY
Pfizer (PFE-N) and Merck (MRK-N) are pretty fully priced at current levels. Growth prospects are not that great, especially with a lot of drugs coming off patent. Multiple looks attractive and dividend looks okay but there are better places to go in pharmaceuticals. Prefers Abbott Labs (ABT-N).
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.
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