10 Best Medical Stocks to Buy According to Billionaires

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

Number of Billionaire Investors: 16

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, which typically consist of therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.

The company is experiencing some headwinds, negatively impacting its revenue outlook. For instance, it has temporarily stopped the shipments of its HPV vaccine Gardasil to China until mid-2025 due to weak discretionary spending. Despite these short-term challenges, Merck & Co., Inc. (NYSE:MRK) has strong operations, supported by robust demand for its diverse and innovative portfolio. Its Keytruda drug for cancer treatment is performing well, and the launch of Winrevair, a drug that treats pulmonary arterial hypertension (PAH), is also boosting revenue growth for the company.

Goldman Sachs analyst Asad Haider maintained their bullish stance on the stock, giving it a Buy rating on April 8. The analyst believes that the current market valuation is overly pessimistic, and it appears to be undervaluing Merck & Co., Inc.’s (NYSE:MRK) Animal Health business, which generates significant revenue and is anticipated to grow in the future. This presents a mispricing opportunity for investors, according to the analyst. Merck & Co., Inc. (NYSE:MRK) ranks eighth on our list of the top medical stocks to buy now.

GreensKeeper Asset Management, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”