7 Undervalued Blue Chip Stocks To Buy Right Now

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

Analyst Upside Potential: 21.81%

Forward P/E, as of September 24: 11.55

Number of Hedge Fund Holders:  96

Merck & Co. Inc. (NYSE:MRK) landed on the 2nd spot in our list of the 7 undervalued blue chip stocks to buy right now. Merck & Co. Inc. (NYSE:MRK)’s Q2 2024 earnings benefited from the continued success of its flagship cancer drug, Keytruda, and the human papillomavirus vaccine, Gardasil. These products saw strong demand globally.

Merck is also strategically increasing its research and development (R&D) spending, particularly in high-growth areas such as oncology and immunology. This commitment to innovation is underscored by its recent acquisition of Prometheus Biosciences, which enhances its capabilities in developing cutting-edge therapies and strengthens its pipeline.

Furthermore, with a forward P/E ratio of 11.55 and a market capitalization of $291.4 billion, Merck is well-positioned for future earnings growth as it capitalizes on emerging opportunities in the pharmaceutical market. The company’s focus on high-margin, high-demand products, coupled with a solid financial foundation, positions Merck favorably for long-term success.

Overall, the combination of a strong product lineup, strategic investments in R&D, and a focus on innovation makes Merck & Co. Inc. (NYSE:MRK) an attractive investment for those seeking exposure to the healthcare sector.