5 Best Drug Stocks to Buy Now

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is a Kenilworth, New Jersey-based drug company. The company is considered one of the best pharmaceutical stocks in the industry.

The company has joined hands with Moderna, Inc. (NASDAQ:MRNA) to develop an mRNA-based vaccine against cancer. Merck & Co., Inc. (NYSE:MRK) has agreed to make an upfront payment of $250 million to Moderna. In the next phase of the research, Moderna’s drug will be used alongside Merck’s Keytruda for the development of the treatments.

Following this development, Carter Gould at Barclays increased the target price for Merck & Co., Inc. (NYSE:MRK) from $101 to $105 and reiterated an Overweight rating on the stock in an investor note issued on October 12. Merck & Co., Inc. (NYSE:MRK) has also shown positive data related to the Phase-III trial of sotatercept for pulmonary arterial hypertension (PAT) treatment.

Carillon Tower Advisers shared its outlook on Merck & Co., Inc. (NYSE:MRK) in its Q2 2022 investor letter. Here’s what the firm said:

“Merck & Co., Inc. (NYSE:MRK) reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”