10 Cheap NYSE Stocks To Invest In Now

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

Current Forward P/E as of December 16: 10.53

Number of Hedge Fund Holders: 86

Merck & Co. Inc. (NYSE:MRK) is a global pharmaceutical leader dedicated to the discovery, development, and commercialization of innovative medicines, vaccines, and animal health products. It focuses on addressing serious health challenges, including cancer, cardiovascular diseases, and infectious diseases.

The company has achieved a nearly threefold increase in its Phase 3 pipeline over the past 3 years, now exceeding 20 unique assets. It anticipates launching numerous new products in the next 5 years, potentially surpassing the number launched in the past decade. This is fueled by internal research efforts and value-creating business development transactions such as the recent acquisition of Curon, a clinical-stage biopharmaceutical company.

Merck & Co. Inc. (NYSE:MRK) has made clinical progress across different therapeutic areas. A key example of this is KEYTRUDA, a type of immunotherapy for cancer. Its sales grew 21% year-over-year to $7.4 billion in Q3 2024. Ongoing clinical successes and expanding indications for KEYTRUDA solidify its position as a key driver of the company’s growth.

Oakmark Equity and Income Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical firm with leading oncology, vaccine and animal health franchises. Premier products in Merck’s portfolio include Keytruda, Gardasil, Winrevair and Bravecto. Outsized contributor Keytruda is an immuno-oncology drug that treats several cancers and tumors. Keytruda is an astounding clinical and commercial success that is on track to become one of the best-selling prescription drugs to date. Investor angst surrounding Keytruda’s pending U.S. patent expiration in 2028 presented a chance to buy shares at a discounted valuation. We believe opportunities to extend Keytruda’s duration through life cycle management are underappreciated. More importantly, discounted cash flows from products already on market cover today’s entire stock price, meaning there is minimal value ascribed to a promising pipeline with strong sales potential. We believe Merck is led by a capable management team that looks to reinvest these cash flows in an accretive manner.”