10 Best Low Volatility Stocks to Invest in Now

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

Number of Hedge Fund Holders: 96

5-year Beta (Monthly): 0.41

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company divided into two main segments: Pharmaceutical and Animal Health. The Pharmaceutical segment offers a wide range of human health products, including treatments for oncology, immunology, neuroscience, and more, with notable brands such as Keytruda, Gardasil, Winrevair, and Bravecto, with Keytruda standing out as a major success in immuno-oncology for treating various cancers.

Concerns about Keytruda’s (the company’s most successful drug) U.S. patent expiration in 2028 have led to discounted stock prices and also made it to our list of the worst performing dow stocks. However, the company still currently has a strong product pipeline, and its late-stage clinical development programs include 80 programs in Phase 2, over 30 in Phase 3, and 10 programs under review.

Although Keytruda’s patent expiration remains a cause for concern among investors, Merck (NYSE:MRK) still has a few years left for it. In the third quarter, the company’s total worldwide sales were up 4% year-over-year at $16.7 billion and Keytruda sales grew 17% (21% excluding the impact of foreign exchange) to $7.4 billion.

Moreover, analysts see the company’s new product launches such as Winrevair, and the company’s fundamentals in a positive light. On November 1, TipRanks reported that BMO Capital maintained a Buy rating on the company stock with a price target of $136. Despite a decline in Gardasil (the company’s HPV vaccine) revenues in China, leading to reduced revenue projections for 2024 and 2025, Seigerman believes Merck’s (NYSE:MRK) business fundamentals remain strong.

The analyst views the company’s share price drop since Q2 2024 as an overreaction. He highlighted the growth potential in Winrevair, driven by increasing demand and upcoming trials in 2025.