Merck & Company (MRK)

Certainly some stocks are less vulnerable to issues involving tariffs. What comes to mind are healthcare companies. You could look at some of the beaten-down companies that really didn't do well last year, as they're doing quite well today. Try this name, which he owns.

It reports Tuesday. Despite acquisitions, MRK remains about their drug Keytruda, the cancer treatment, that keeps working. He beats numbers will be good, but he wants to hear about these acquisitions.

It is best in class. It is a large manufacturer of vaccines but the primary driver is an immune therapy drug that is used across many types of cancers and has 200 ongoing trials. It is coming off patent later in the decade. The vaccine take-up could lead to slower growth but this is a shorter term issue.       Buy 24  Hold 8  Sell 0

Owns no US pharma, all under pressure. Potential US healthcare reform may target drug prices. Patent-cliff risk. Not a compelling total-return generator. Yield is ~3%, grows at 6%, which lags the market and the sub-index.

Off highs. 2025 provides a broad opportunity in healthcare. Big cancer drug Keytruda coming off patent in 2028, but that's built into the stock price trading at 10x PE. Other drugs in the pipeline to fill in the space. Track record of successful and profitable blockbusters. Yield is 3%.

The CEO is doing a great job. It trades cheaper than JNJ or Pfizer. Good growth.

The new US administration is talking tough about health cost controls, certainly more extreme than in the past. MRK's Keytruda is a blockbuster drug that has a few years to go before the patent ends. Healthcare has been out of favour the past year, but he recommends holding on.

It's cheap at 11x forward PE and pays a 3% dividend. Their vaccine business in China has been hurt, but should recover next year. He's looking at it. Likes their drug pipeline.

Pharma companies are always facing the patent wall, needing to spend R&D to innovate new drugs. Very difficult to predict the next blockbuster. He prefers and owns JNJ and ABT, more diversified.

Pharma is ~90% of revenue, smaller segment is animal care. Pulled back about 23% from recent peak in June. Yield is 3%, has grown at 5% compound pace over last 5 years. So total compounded shareholder return ~10% over the last decade. Pullback probably buyable. Steady, non-cyclical, a need not a want.

Risks include lower guidance on Gardasil (second-biggest drug) sales in China, coming off patent in 2028. Keytruda (biggest drug) also coming off patent then. Those two together account for just over 50% of revenues. Need to fill hole in pipeline either through R&D or M&A.

Healthcare space provides nice combination of growth with stability, in case we get into latter stage of economic cycle. Likes the space, but not this name. Price fell below 200-day MA in July, though that 200-day MA is moving higher. Technicals are not appealing.

He owns LLY and NVO, MCK and CAH.

Is famous for Keytruda, a great drug used against cancer. Their main patent will expire in 2028, so there's time. He expects them to go a big acquisition. Steady and predictable. Profitable. Lots to like.

Owns shares in the company, and will continue to hold. Very strong R&D department. Lots of excellent patents that have a long runway. Good brand name with consumers. Excellent financial results. Would recommend for the long term investor. 

The whole space has lower beta, lower risk. 9% YOY revenue growth, well ahead of estimates. Lots in the pipeline. 15x forward PE, yield is 2%. Risks of competition, but her target is still $140 so lots of upside. Pullback provides great entry point. Analysts say Outperform of almost 25% upside from here.

Is a huge believer in this, but China is a short-term problem.