10 Best Major Stocks to Invest In According to Analysts

8. Merck & Co. Inc. (NYSE:MRK)

Average Upside Potential: 21.44%

Market Cap as of September 26: $292.00 billion

Number of Hedge Fund Holders: 96

Merck & Co. Inc. (NYSE:MRK) is a multinational pharmaceutical company that does business as Merck Sharp & Dohme or MSD outside the US and Canada. It’s a leading global healthcare company that focuses on developing innovative medicines and vaccines in areas including oncology, infectious diseases, cardiovascular, neuroscience, immunology, and women’s health.

Revenue growth in the second quarter of 2024 was 7.16% as compared to Q2 2023, driven by growth across its business segments. The Human Health business grew by 11% year-over-year, the Animal Health segment increased sales by 6%, and the company’s star cancer drug, KEYTRUDA, saw sales rise of 21%. In vaccines, GARDASIL sales increased 4%, while VAXNEUVANCE sales grew 16% year-over-year.

A lot of its growth is attributed to the patent for KEYTRUDA’s formulation, which is set to expire in 2028 and could impact future growth.

Earlier this year, it received FDA approval and ACIP recommendation for its new pneumococcal conjugate vaccine, CAPVAXIVE, for adults. The WINREVAIR vaccine for adult patients with pulmonary arterial hypertension was also approved by the FDA, and generated $70 million+ in sales during the quarter, with 40% of sales coming from patient doses.

It acquired Elanco’s aqua business to position itself as a leader in animal health. The company also acquired EyeBio in July to enter the ophthalmology market and develop treatments for retinal conditions.

The company is set for continued growth as it continues to rapidly expand in international markets. Merck & Co. Inc.’s (NYSE:MRK) diversified drug portfolio and global presence have fueled strong financial results. The acquisition of Harpoon Therapeutics is expected to further enhance its oncology pipeline and create opportunities for innovative combination therapies.

Carillon Eagle Growth & Income Fund 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.”