12 Best Affordable Stocks To Buy Right Now

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

Forward P/E Ratio: 13.12

Earnings Growth This Year: 412.99%

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) is an international pharmaceutical company that manufactures and sells prescription medicines, vaccines, and animal welfare products. It engages in researching and developing treatments for serious health issues including cancer, cardiovascular diseases, and other infections.

The company’s blockbuster cancer treatment KEYTRUDA accounts for more than 44% of its total sales. During the third quarter of fiscal 2024, total sales grew 4% year-over-year to $16.7 billion, out of which KEYTRUDA sales contributed $7.4 billion, after improving 17% during the same time. While robust sales for this drug indicate a dominant market position, management has been focused on diversifying its drug portfolio.

On March 26, Merck & Co., Inc. (NYSE:MRK) got FDA approval for WINREVAIR, which treats adults with pulmonary arterial hypertension. Additionally, another drug called CAPVAXIVE, got approved in June. Since its launch, WINREVAIR has delivered $149 million in net sales. Lastly, the company’s Animal Health sales are also progressing well and grew 6% year-over-year to reach $1.5 billion during the quarter.

Columbia Dividend Opportunity Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“On the downside, Merck & Co., Inc. (NYSE:MRK) was the largest detractor from relative performance. The company experienced some demand headwinds in China for Gardasil, its vaccine to prevent cancer from HPV, which weighed on its shares, given that the country represents Merck’s largest market for the drug. The fund’s holdings in the large-cap bank stocks Wells Fargo and Bank of America, which both performed well in the first half of the year, turned lower in the most recent quarter and dampened results.”