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
WEAK BUY
Thinks it's going to be very tough to legally get this company with VIOXX. They have it as the 11th position in their portfolio. Model price is $38. Prefers Pfizer which has a bigger upside.
WEAK BUY
Feels they should have re-labelled rather than pulling Vioxx so that people would know how to use them properly. A huge number of lawsuits they could face down the road. Didn't grow by acquisition, so their pipeline looks a bit murky. A great company and will be around for a long time.
DON'T BUY
Companies like Pfizer and Merck have been coming apart for quite awhile. Growth rate has gone from 30% to low single digits. When this happens, the P/E has to contract. There are more sellers than buyers. One of the few that is doing better is Schering AG. Growth rate is accelerating and have a good line up of drugs.
DON'T BUY
Facing a large number of large and messy law suits.
WEAK BUY
Mispriced. Expects that down the road Vioxx will come back.
DON'T BUY
A cockroach company with one problem after another coming out of the woodwork.
DON'T BUY
In 2002, 2003 and early 2004 the chart looked like it was going to hold, but then collapsed. A broken down stock. Usually takes a significant amount of time for the news to be absorbed.
DON'T BUY
More aggressive than what they would want. A number of outstanding issues regarding litigation would keep the top executives eyes off running the business. Prefers Pfizer.
DON'T BUY
Market is pricing in $20/25 million for class action law suits, but it could be more. Would need a tremendous amount of earnings growth to reach what people are expecting and this is unlikeley. High dividend yield. No longer a safe story.
PAST TOP PICK
(A Top Pick July 12/04. Down 40%.) Sold out before the big drop.
BUY
Pharmaceuticals are cheaper than he has ever seen them. Cheap. Trading at low multiples.
DON'T BUY
Took a tremendous hit with their withdrawal of Vioxx. Buying it now would be bottom fishing. A lot of issues going on in the pharma sector now. Weak pipeline.
DON'T BUY
Has declined because of a recall of one of their drugs. Will probably have a bounce.
PAST TOP PICK
(A Top Pick Apr 28/04. Down 4%.) Had bought for the wrong reasons. Bought at the top of a cycle as a defensive play. Don't buy.
TOP PICK
Dividend yield is very attractive. You pay very little for the upside.
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