10 Best Defensive Stocks To Buy Now

7. Merck & Co., Inc. (NYSE:MRK)

Stock Price as of August 16: $113.53

Average Analyst Price Target Upside as of August 16: 25.08%

Merck & Co., Inc. (NYSE:MRK) is a leading American multinational pharmaceutical company. It was originally established in 1891 as the U.S. subsidiary of the German Merck Group and it became independent after World War I. Today, it is known globally for developing and producing a wide range of medicines, vaccines, biological therapies, and animal health products.

Some of its blockbuster drugs include Keytruda for cancer immunotherapy and Januvia for diabetes. Merck (NYSE:MRK) has a history of significant medical breakthroughs and continues to be one of the top pharmaceutical companies worldwide. In addition, the company has over 80 programs in phase 2 of clinical trials, over 30 programs in phase 3, and over 10 programs under review, which are awaiting FDA approval.

As of August 13, Leerink Partners analyst Daina Graybosch has reaffirmed a Buy rating on Merck (NYSE:MRK) stock and expressed confidence in the company’s future. Despite recent challenges with some drug trials, Graybosch is optimistic about its new treatments, especially for small-cell lung cancer.

The analyst sees potential in upcoming data from the company’s pipeline, which could lead to faster approvals and boost the company’s growth. Graybosch also believes Merck’s (NYSE:MRK) plan to use Keytruda’s existing infrastructure, including a new subcutaneous version, will help protect against competition. Overall, the analyst is positive about the company’s strategy and growth prospects.

At the time of writing on August 16, 27 analysts have covered Merck (NYSE:MRK) stock with an average price target of $142, which represents an upside of over 25% from the current levels. This brings the stock to 7th position on our list of best defensive stocks to buy.

Carillon Tower Advisers stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its first quarter 2024 investor letter:

“After posting lackluster returns in 2023, Merck & Co., Inc. (NYSE:MRK) got off to a strong start in January by raising the long-term sales forecasts for its oncology and cardiology pipelines and reporting solid fourth-quarter results, coupled with strong financial guidance for 2024. Merck shares also finished the quarter strong after receiving U.S. Food and Drug Administration approval in late March for a new cardiology medicine with the potential to contribute significantly to sales growth over the next several years.”