8 Most Undervalued Value Stocks To Buy According To Analysts

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

Average Upside Potential: 28.79%

Forward P/E: 10.83

EPS Growth This Year: 424.50%

Number of Hedge Fund Holders: 96    

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company. The company works to deliver innovative health solutions through its medicines, vaccines, biologic therapies, and animal health products. Merck & Co. was founded in the United States in 1891.

Merck & Co. is driving patient benefits and global growth across a broad portfolio of commercial therapies. The company has made significant progress over the preceding three years by reaching more people globally with its medicines and vaccines and expanding its pipeline to drive future innovations for patients.

The firm’s business momentum has remained strong through 2024. Merck & Co., Inc. (NYSE:MRK) recorded strong Q2 worldwide sales of $16.1 billion, up 7% from the second quarter of 2023. KEYTRUDA sales rose 21% year-over-year. The company also saw a successful initial launch of WINREVAIR in the US. In vaccines, GARDASIL sales increased 4% while VAXNEUVANCE sales grew 16% year-over-year. In July, the firm completed acquisitions of EyeBio and Elanco’s Aqua Business.

Recently, the company got FDA approval for its new pneumococcal vaccine, CAPVAXIVE, for adults. The WINREVAIR vaccine for adults with pulmonary arterial hypertension was also approved and made more than $70 million in sales in Q2 2024. 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.”