Billionaire Israel Englander’s Top 10 Stock Picks for 2024

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

Billionaire Israel Englander’s Stake Value: $1,328,664,191

Merck & Co. Inc. (NYSE:MRK) is one of the most promising stocks in billionaire Israel Englander’s Q1 portfolio. Millennium Management increased its position in the biotech company by 67% in the March quarter, ending the period with a $1.3 million stake. In April, Merck & Co. Inc. (NYSE:MRK) posted solid Q1 results and increased its full-year guidance driven by about 20% YoY rise in sales for its blockbuster cancer medicine Keytruda. Wall Street expects Merck & Co. Inc. (NYSE:MRK) 2025 EPS to come in at $9.95. Based on the stock’s current price, Merck & Co. Inc.’s (NYSE:MRK) forward P/E ratio is 13.13, compared to the industry average of 19.79 and lower than Merck’s 5-year average P/E of 18.67. Wall Street expects Merck & Co. Inc.’s (NYSE:MRK) revenue to jump 7.30% while earnings growth is expected to clock in at 15.00%. Wall Street estimates suggest Merck’s EPS will grow to $12.5 by the end of fiscal year 2028. This translates to a CAGR of 7.6% between fiscal years 2024 and 2028.

Analysts believe Merck & Co. Inc. (NYSE:MRK) has done a decent job at diversifying its drug portfolio and expanding across different geographies. The company makes money from vaccines and immunotherapy drugs

Sales growth momentum of Keytruda is also expected to continue as the drug is patent-protected until 2028. Merck & Co. Inc. (NYSE:MRK) is also investing heavily into R&D to make new drugs for unmet medical needs, such as oncology and immuno-oncology. Average analyst price estimate for Merck & Co. Inc. (NYSE:MRK) is $142, which presents a 12% upside potential from the current levels.

Carillon Eagle Mid Cap Growth Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q3 2023 investor letter:

“Merck & Co., Inc. (NYSE:MRK) underperformed in the third quarter, based on what we view as largely macroeconomic-related factors. The company continues to execute well, both clinically and fundamentally, but much of the biopharmaceutical industry has been weak as investors are gravitating to other, more cyclical sectors.”