12 Best Psychedelic Stocks to Buy in 2025

2. Merck & Co., Inc. (NYSE:MRK) 

Number of Hedge Fund Holders: 91 

Merck & Co., Inc. (NYSE:MRK) is a prominent American multinational pharmaceutical corporation that is historically tied to the original Merck Group and is ranked second among the best psychedelic stocks to buy in 2025. Globally known as Merck Sharp & Dohme (MSD), the corporation offers biologic treatments, vaccines, prescription medications, and animal health products.

Merck & Co., Inc. (NYSE:MRK) is advancing psychedelic research, particularly for treatment-resistant depression (TRD). In 2021, it partnered with Novamind to conduct clinical trials on MK-1942, evaluating its efficacy alongside antidepressants. The company is restructuring its R&D with global innovation hubs to enhance drug discovery and seek external scientific advancements. While MK-1942’s psychedelic nature is unclear, Merck & Co., Inc. (NYSE:MRK) is likely exploring novel TRD treatments, including psychedelic-inspired compounds.

While keeping a Market Perform rating, Bernstein SocGen Group lowered its price objective on Merck & Co., Inc. (NYSE:MRK) shares from $110 to $95 on February 10. A key element of the adjustment, according to analyst Courtney Breen, is worries about Merck’s vaccine, Gardasil, which is approaching the end of its exclusivity term (LOE). The company’s Q4 profitability notwithstanding, the stock’s performance has been negatively impacted by persistent Gardasil concerns. Breen notes that $200 million in sales from China have now been realized, de-risking the lower end of the Gardasil sales forecast. This development has been incorporated into Bernstein SocGen’s base case scenario.

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.”