5 Best Low Risk Stocks to Buy Now

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is another healthcare giant that features on our list of the best low risk stocks to buy now. The company markets a range of healthcare products that are likely to provide investors with plenty of cover in case of economic upheaval. The firm recently entered into an agreement with Gilead Sciences for trials of a new drug for the treatment of breast cancer patients. 

On October 22, investment advisory SVB Leerink maintained an Outperform rating on Merck & Co., Inc. (NYSE:MRK) stock and raised the price target to $105 from $104. Daina Graybosch, an analyst at the firm, issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Merck & Co., Inc. (NYSE:MRK) with 10.3 million shares worth more than $802 million. 

In its Q1 2021 investor letter, Artisan Partners highlighted a few stocks and Merck & Co., Inc. (NYSE:MRK)  was one of them. Here is what the fund said:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”