Billionaire Ken Fisher’s 10 Healthcare Stock Picks with Massive Upside Potential

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

Upside Potential: 48.91%

Number of Hedge Fund Holders: 91

With hallmark medications in oncology, vaccines, and infectious illnesses, Merck & Co., Inc. (NYSE:MRK) is a leading worldwide healthcare company that works in both human and animal health. The company, which is well-known for its innovation-driven pipeline, keeps making significant R&D investments while negotiating the shifting dynamics of the worldwide market.

Merck & Co., Inc. (NYSE:MRK) generated $15.6 billion in total Q4 sales, which was 7% higher than the previous year (9% ex-FX). Sales of Keytruda increased 21% to $7.8 billion due to robust worldwide demand for both metastatic and early-stage malignancies. Additionally, the company’s Animal Health division reported strong 13% growth. Sales of GARDASIL, however, fell 18% as a result of shipments to China being halted due to high inventory levels at distribution partner Zhifei. Merck, however, is still optimistic about GARDASIL’s long-term prospects worldwide.

The company’s core business development is anticipated to counteract GARDASIL’s challenges in China, with revenue projections for 2025 ranging from $64.1 to $65.6 billion and non-GAAP EPS of $8.88 to $9.03. In addition to increasing its dividend, Merck & Co., Inc. (NYSE:MRK) increased its authorization for share repurchases to $12 billion, bolstering shareholder returns. Notably, the pipeline contains more than 20 potential blockbusters, such as WINREVAIR for pulmonary arterial hypertension, which has been approved in more than 35 countries and saw initial sales of $200 million.

Following promising Phase III findings in TGCT patients, Merck & Co., Inc. (NYSE:MRK) exercised its global commercialization rights for pimicotinib, a CSF-1R inhibitor created by Abbisko Therapeutics, on March 31, 2025, expanding its oncology pipeline. Merck’s long-term growth prospects are improved by this $85 million acquisition, which expands its extensive oncology bench.

Thus, Merck & Co., Inc. (NYSE:MRK) continues to be a high-conviction pharmaceutical investment in Ken Fisher’s stock portfolio because of its innovation-led approach, diversified portfolio, and dedication to capital discipline.