Merck & Company (MRK) Buy, Sell or Hold

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Merck & Company (MRK)

130.20

+0.41 (0.32%)

as of Jul 31, 2026, 8:00:00 pm Market Open.

311 watching

Investor Insights

Aug 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.

Consensus

Positive

Valuation

Undervalued

Similar

Pfizer, PFE

BUY

MRK vs. ABT Both are great companies. ABT is the leading supplier of glasswork to the medical industry. Merck has incredible products as a global pharmaceutical company. You could buy either one.

WATCH

They have an analyst meeting on Monday. Watch that, because they reported ugly numbers earlier this week.

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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 returns as a TOP PICK. Trading at 17 times earnings, compared with its peers at 40x it is good value here. It pays an excellent dividend, backed by payout ratio of only 50% of cash flow. We would buy it here with a stop-loss at $65, looking to achieve $96 -- upside potential of 23%. Yield 3.36% (Analysts’ price target is $96.33)

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)

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Merck & Company (MRK)