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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DON'T BUY

Like BMY, nobody wants these drug stocks now. The reopening trade is a headwind. The economy will reopen, so investors think they don't need a drink stock, no matter how well that stock is performing.

BUY
It's a bellwhether pharamceutical, but he doesn't like this space because drug patents constantly expire under given patent law. Merck is getting interesting, partially because of valuation around 12x PE. Also, because their franchise drug is an oncology drug that doesn't come off patent until 2026. It pays a good dividend. It's become more interesting because the PE has declined.
PAST TOP PICK
(A Top Pick Jan 30/20, Down 1%) Still likes. Continues to buy. Discount to other big pharma. Cancer drugs are very high margin. Pandemic has spurred pharma sales. Will benefit as life returns to normal. Yield is 3.1%.
SELL

All big pharmas have been treading water. Patent legislation has left them with a leaky boat. He's gravitated toward the bio-pharmas. His favourite in that space is AbbVie, as it's good on fundamentals and financials, inexpensive, very fine dividend, great cashflow generator.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 29/20, Down 5.9%)Stockchase Research Editor: Michael O'Reilly We are recommending to cover MRK as it has violated our stop-loss. We are going to look for better opportunities.
PAST TOP PICK
(A Top Pick Oct 24/19, Down 2%) Healthcare is a resilient sector, not cyclical. Strong in oncology space. Pandemic has crimped pharma sales, especially from hospitals. Shares are cheap, 9% earnings growth rate, dividend over 3%.
PAST TOP PICK
(A Top Pick Jul 17/19, Down 4%) Still likes this diversified large-cap biopharma. Has a great diabetes franchise, though little growth, but they rely on an immunotherapy franchise (a cancer treatment)--they've done great execution here over the past 6 years.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly MRK is one of the largest pharma companies in the world. It trades at a 13 PE compared to 22 PE for the S&P500. The pandemic has slowed some elective procedures, and that has slowed sales in the latest quarter by about 9%. However, management still opted to raise its 2020 guidance showing confidence that things should improve for the balance of the year. The company also has three drugs moving through various COVID-19 vaccine test trials. It pays a good yield, backed by a 58% payout ratio. We would buy this with an upper target towards $96 as the first objective and use $77 as a stop-loss. Yield 2.95% (Analysts’ price target is $95.94)
PAST TOP PICK
(A Top Pick Sep 11/19, Up 6%) In his favourite sectors of bio and pharma. Strong in oncology. Diversified pipeline. Trading at a bit of a discount, 15x forward earnings, 2.9% dividend. Compelling story for the dividend and growth in the sector.
HOLD
You'd need to have a Democratic sweep in the upcoming election to have an effect on Wall St. Has a 3.2% yield. Great pipeline of drugs. 8% growth rate. Lagged healthcare the last little while, as most money has gone to Covid treatments. Continues to hold.
DON'T BUY
An Act in the US back in the early 1980's introduced the end of patents with drugs. Patent expiration opened the door for generics. MRK has become the most successful pharma company and has a big patent coming due soon. He would tend to move towards the bio-pharma space instead.
TOP PICK
A Top 100 S&P company, trading in US dollars. His model price is $133.28. A good pullback in price -- good value here. He sees supply chains coming back in health back to US companies. Yield 3.2% (Analysts’ price target is $93.68)
TOP PICK
He doesn't recommend pharma but they are so cheap that he has to. He has a model price of $122.73 or 55% upside. It is a screaming opportunity. (Analysts’ price target is $97.61)
TOP PICK
Great business. Wide lineup of high margin drugs, robust new pipeline. 23 consecutive quarters of positive earnings surprises. Defensive growth name. 16x earnings, 10-12% growth rate. Yield is 2.82%. (Analysts’ price target is $99.40)
PAST TOP PICK
(A Top Pick Dec 03/18, Up 19%) This company's been on their top picks list since 2016. He spoke to the head of Research when they were brining forward immunotherapy drug Keytruda. The trials are going well over multiple trials. They are also #3 in the animal business too.
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