5 Stocks to Buy Before the Next Pandemic

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

Number of Hedge Fund Holders: 84

PE Ratio: 16.77

With a market cap of $227.19 billion, Merck & Co., Inc. (NYSE:MRK) stands as one of the most prominent biopharmaceutical firms in the world. It researches and develops drug therapies for a range of disorders such as cardiovascular,, immunology, neuroscience and cancer diseases, as well as vaccines for babies, adolescents, and adults. The company also develops veterinary pharmaceuticals and vaccines through its Animal Health segment. Merck & Co., Inc. (NYSE:MRK) has paid a dividend to shareholders since 1989, and its current yield stands at 3.07% as of June 6.

On April 12, Barclays analyst Carter Gould maintained an ‘Overweight’ rating on Merck & Co., Inc. (NYSE:MRK) shares, and increased the price target to $97 from $94. In the last 12 months, the company shares have registered a jump of 23.41%, and 16.87% in the year to date as of June 6.

Investors were recently seen buying Merck & Co., Inc. (NYSE:MRK) shares. At the close of the first quarter, 84 hedge funds were bullish on the company shares, as compared to 80 hedge funds in the previous quarter. The combined worth of Q1 hedge fund holdings stood at $5.86 billion. Fisher Asset Management owned a $970.8 million position in Merck & Co., Inc. (NYSE:MRK) at the end of the first quarter, making it the biopharmaceutical company’s largest shareholder.

For Q1 2022, Merck & Co., Inc. (NYSE:MRK) reported earnings per share of $2.14, outperforming estimates by $0.31. The company’s revenue for the quarter came in at $15.9 billion, beating analysts’ estimates by $1.25 billion and showing year-on-year growth of 31.63%.

Asset management firm Miller Howard Investments mentioned Merck & Co., Inc. (NYSE:MRK) in its Q3 2021 investor letter. The fund said:

“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”

You can also take a look at 10 Best Software Stocks To Buy Now and Top 10 Places to Go as Soon as Coronavirus Pandemic Ends.

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