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)
(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.
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.
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.
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)
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)
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)
(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.
His model price is $126 -- 41% potential upside. Demographics favour it. He can't understand why this sector is still so cheap. Yield 2.72% (Analysts’ price target is $99.24)
It's done quite well. New products are coming out. Dividend growth rate was 15% last year which is because of the new product cycle. Revenues were up by 12% which is big for the pharmaceutical sector.
Healthcare is a constructive space right now -- defensive, but not too expensive. MRK is a good candidate with a strong return on equity and fair valuation (17 times earnings) and debt is not an issue.
Has done quite well relative to other healthcare names. Wide line of high marketing drugs, and a good pipeline of new drugs. One of the better names. 22 consecutive quarters of positive earnings. Decent PEG ratio. Yield is 2.66%. (Analysts’ price target is $96.29)
If he had to pick one pharma, he'd pick Merck. Their pipeline is superior to peers, and well managed. But he wouldn't own the industry at this point in the cycle.
Products marketed to over 140 countries. Main drugs in diabetes and oncology. Robust pipeline of new drugs, which will drive revenues over the long term. Not too expensive, with an 11-12% growth rate. Yield is 2.65%. (Analysts’ price target is $96.69)
Pfizer vs. Merck He owns both, which both score well in price momentum, high ROE, great balance sheet, pay a sustianble yield and are stable stocks. Merck has slightly better valuation metrics, but both stocks are very similar.
Merck & Company is a American stock, trading under the symbol MRK (previously MRK-N on Stockchase) on the New York Stock Exchange (MRK). It is usually referred to as NYSE:MRK or MRK
Is Merck & Company a buy or a sell?
24 expert ratings on Merck & Company (MRK) in the last 12 months: 19 Buy, 3 Hold, 2 Sell. Latest rating: TOP PICK by The Panic-Proof Portfolio (Stockchase Research) on Sep 29, 2020. Read the latest stock experts' ratings for Merck & Company.
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