7 Best Stocks for Beginners with Little Money According to Analysts

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

Analyst Upside as of September 10: 22%

Number of Hedge Fund Folders: 96

Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical company headquartered in the United States. The company specializes in the production of vaccines and provides hospital care services.

Merck & Co., Inc. (NYSE:MRK) is constantly striving to innovate and expand into new avenues. Its new pneumococcal conjugate vaccine for adults just received approval from the FDA. The company also closed its acquisition of EyeBio, in an attempt to venture into the ophthalmology industry and invent a treatment for retinal conditions. Its Animal Health segment also closed the acquisition of Elanco’s aqua business, presenting Merck & Co., Inc. (NYSE:MRK) as a leader in the animal health business.

Overall, in the second quarter of 2024, the company’s Human Health business grew by 11%, its Animal Health segment saw a 6% increase in sales, and its star cancer drug went up by 21% reaching $7.3 billion in sales. Merck & Co., Inc.’s (NYSE:MRK) commitment to innovation is what helps it stand out. The company launched a new vaccine for adult patients with pulmonary arterial hypertension earlier this year. The vaccine was only approved by the FDA on March 26 and logged over $70 million in sales in the quarter. 40% of these sales came from doses administered to patients and the remainder to distributors.

Analysts are bullish on MRK and their 12-month median price target of $141 points to a 22% upside from current levels. 96 hedge funds hold the stock as of Q2 2024. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $1.77 billion.

Baron Funds’ Baron Health Care Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its first quarter 2024 investor letter:

“Global pharmaceutical company Merck & Co., Inc. (NYSE:MRK), Inc. contributed on the continued growth of Keytruda, the company’s key asset and the leading immuno-oncology agent used to treat a variety of cancers. The FDA’s late March approval of pulmonary arterial hypertension drug sotatercept, also drove share gains. We retain conviction as Merck has started to transition from prioritizing its Keytruda franchise to building a more diversified business, with a focus on the Gardasil vaccine, pneumococcal vaccine development, and cardiovascular drug development, well in advance of the scheduled expiration of patent protection/exclusivity rights.”