15 Best Defensive Stocks Amid Market Volatility

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1. Merck & Co. Inc. (NYSE:MRK)

Beta: 0.35

Number of Hedge Fund Holders: 91

Merck & Co. Inc. (NYSE:MRK) is a global pharmaceutical company known for its innovations in vaccines, oncology, and infectious diseases as well as animal health products. The company’s blockbuster drugs, including Keytruda and Gardasil, contribute significantly to its revenue growth.

DBS analyst Nico Chen had reaffirmed a Buy rating on Merck & Co. Inc. (NYSE:MRK) in a mid-February report. He kept his price target at $100 and cited strong growth driven by Keytruda as a reason for his positive outlook. The analyst said that this blockbuster oncology drug has significantly boosted revenue and continues to expand globally.

Another key factor, in his view, was the promising development of sac-TMT, an antibody-drug conjugate for advanced non-small cell lung cancer, which received ‘Breakthrough Therapy Designation’ from the FDA. This could accelerate its market entry and strengthen the company’s valuation. Additionally, the analyst thinks that Merck’s financial outlook remains strong, with expected net income growth and lower patent expiry risks compared to peers.

While we acknowledge the potential of MRK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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