10 Most Promising Long-Term Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 96

Analyst Upside as of October 13, 2024: 28%

Merck & Co., Inc. (NYSE:MRK) is one of the most promising long-term stocks according to hedge funds. The pharmaceutical company is engaged in the production of vaccines and the provision of hospital care services.

For the year ended 2023, the company had 52 drugs in rotation serving over 500 million people in the United States. In addition to that, its star cancer drug, first approved in 2014, generated $26.3 billion in sales in 2023 and $7.3 billion during the second quarter of 2024.

What sets Merck & Co., Inc. (NYSE:MRK) apart is its knack for expansion. Recently, it acquired EyeBio, expanding Merck’s position in the ophthalmology industry. In addition to that, its animal health segment closed the acquisition of Elanco’s aqua business, presenting it as a crucial stakeholder in the animal health industry. On October 1, Merck & Co., Inc. (NYSE:MRK) acquired CN201 from Curon Biopharmaceutical (Curon), a novel clinical-stage bispecific antibody for the treatment of B-cell diseases. Through the agreement, Merck now has complete global rights to CN201.

Merck & Co., Inc. (NYSE:MRK) boasts strong fundamentals and is a front-runner in the race to become a leading drug provider. To align with the goal, the company spent over $30.5 billion in research and development in 2023, which is expected to increase with every passing year.

Baron Funds’ Baron Health Care Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its first quarter 2024 investor letter:

“Global pharmaceutical company Merck & Co., Inc. (NYSE:MRK), Inc. contributed on the continued growth of Keytruda, the company’s key asset and the leading immuno-oncology agent used to treat a variety of cancers. The FDA’s late March approval of pulmonary arterial hypertension drug sotatercept, also drove share gains. We retain conviction as Merck has started to transition from prioritizing its Keytruda franchise to building a more diversified business, with a focus on the Gardasil vaccine, pneumococcal vaccine development, and cardiovascular drug development, well in advance of the scheduled expiration of patent protection/exclusivity rights.”