11 Best Undervalued Stocks to Invest in Now

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

Forward P/E Ratio: 10.27 

Earnings Growth This Year: 17.44% 

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) is a large pharmaceutical company that focuses on creating and selling medicines, vaccines, and other health-related products for both humans and animals. The company continues to make significant investments in expanding KEYTRUDA’s indications to expand its lifecycle and market dominance.

The company’s anti-PD-1 therapy, KEYTRUDA (pembrolizumab), has been granted priority review by the FDA for treating patients with resectable locally advanced head and neck squamous cell carcinoma. KEYTRUDA is proposed for use before surgery and after surgery in combination with radiotherapy and possibly cisplatin, then as a single agent. This application is based on positive results from the Phase 3 KEYNOTE-689 trial, which showed significant improvements in event-free survival and major pathological response compared to standard treatments.

Merck & Co., Inc. (NYSE:MRK) delivered robust performance in fiscal 2024, driven by demand for innovative products like KEYTRUDA, which is helping more cancer patients worldwide. Other contributing factors included the successful launch of WINREVAIR and the robust performance of its Animal Health division. For 2025, the company expects sales between $64.1 billion and $65.6 billion, with a non-GAAP gross margin of approximately 82.5%. It is one of the best-undervalued stocks to invest in now.

GreensKeeper Asset Management stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“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.”