7 Best Cheap Stocks to Buy According to Billionaire Ray Dalio

4) Merck & Co., Inc. (NYSE:MRK)

Bridgewater Associates’ Stake Value: $223,086,486

Number of Hedge Fund Holders: 96

Forward P/E Ratio as of 4 October: 11.00x

Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company worldwide. It carries out operations via 2 segments, Pharmaceutical and Animal Health.

Wall Street analysts remain optimistic about the growth prospects of Merck & Co., Inc. (NYSE:MRK) as the company has diversified its drug portfolio and expanded throughout different geographies. Moving forward, Merck & Co., Inc. (NYSE:MRK)’s earnings are expected to be fueled by its recent acquisition of a biotech firm, Harpoon Therapeutics. This acquisition should help Merck & Co., Inc. (NYSE:MRK) in boosting its oncology pipeline.

Additionally, Merck & Co., Inc. (NYSE:MRK) possesses strong potential to develop several other opportunities for the development of powerful new combination therapies. Harpoon’s technology platform is versatile and effective at creating cancer-fighting therapies. Merck & Co., Inc. (NYSE:MRK) has announced strategic portfolio changes, targeting a sustainable long-term growth trajectory. It recently highlighted the divestiture of Surface Solutions and an improved focus on high-tech applications in electronics and life science technologies.

Merck & Co., Inc. (NYSE:MRK) saw an improvement in order intake and in book-to-bill ratio, which hints at potential future revenue growth. The company exhibited resilience in its strategy to balance investment in internal R&D with external innovation. This ensures a strong pipeline for future growth. For FY 2024, the company raised and narrowed its expected worldwide sales range to $63.4 billion – $64.4 billion. It expects non-GAAP EPS of between $7.94 – $8.04.

Cantor Fitzgerald reaffirmed an “Overweight” rating, setting a price target of $155.00 on 3^rd October.

Carillon Tower Advisers, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“After posting lackluster returns in 2023, Merck & Co., Inc. (NYSE:MRK) got off to a strong start in January by raising the long-term sales forecasts for its oncology and cardiology pipelines and reporting solid fourth-quarter results, coupled with strong financial guidance for 2024. Merck shares also finished the quarter strong after receiving U.S. Food and Drug Administration approval in late March for a new cardiology medicine with the potential to contribute significantly to sales growth over the next several years.”