10 Most Oversold S&P 500 Stocks in 2024

2) Merck & Co., Inc. (NYSE:MRK)

% Decline In 1 Year: ~34.0%

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company. The company has seen a decline in Gardasil revenues in China, resulting in a reduction in revenue estimates, opines Evan Seigerman from BMO Capital. The China market continues to be a key growth driver for many pharmaceutical companies, and this slowdown has raised concerns in the investors’ minds about headwinds in this critical region. However, Evan Seigerman maintained a “Buy” rating on the company’s stock with a price target of $136.00.

Despite challenges, the analyst highlights Merck & Co., Inc. (NYSE:MRK)’s underlying strength. The analyst provides a strong area of growth, with higher organic demand and potential expansion in 2025 aided by upcoming trials. Seigerman focuses on Merck & Co., Inc. (NYSE:MRK)’s promising cardiovascular portfolio, and advancements in immunology and inflammation via strategic acquisitions, and partnerships, which are expected to drive growth. Elsewhere, Bank of America Securities also reiterated a “Buy” rating with a $120.00 price target.

GreensKeeper Asset Management, an investment management company, released its Q3 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.”