Billionaire Ray Dalio’s Bridgewater Is Crazy About These 15 Stocks

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

Bridgewater Associates’ Stake Value as of Q3: $176.5 million

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK), headquartered in Rahway, New Jersey, is a renowned American multinational pharmaceutical company with historical ties to the original Merck Group, founded in Germany in 1668. Internationally recognized as Merck Sharp & Dohme (MSD), it is celebrated for its groundbreaking innovations in pharmaceuticals and vaccines.

On November 19, JPMorgan reiterated its Overweight rating and $145 price target for Merck & Co., Inc. (NYSE:MRK) after the company reported positive Phase 3 trial results for a subcutaneous formulation of its cancer drug Keytruda. The trial successfully met its dual primary pharmacokinetic endpoints, marking a critical milestone in reinforcing the long-term sustainability of the Keytruda franchise in the U.S.

In its Q3 2024 earnings report, Merck & Co., Inc. (NYSE:MRK) recorded a 4% revenue increase, reaching $16.7 billion, driven by strong sales of Keytruda and the recent launch of Winrevair. The company also highlighted significant clinical advancements and new FDA approvals, bolstering its oncology portfolio. Additionally, the pharma giant announced a quarterly dividend of $0.81 per share on November 19, payable on January 9, 2025, to shareholders of record as of December 16, 2024.

Oakmark Equity and Income Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical firm with leading oncology, vaccine and animal health franchises. Premier products in Merck’s portfolio include Keytruda, Gardasil, Winrevair and Bravecto. Outsized contributor Keytruda is an immuno-oncology drug that treats several cancers and tumors. Keytruda is an astounding clinical and commercial success that is on track to become one of the best-selling prescription drugs to date. Investor angst surrounding Keytruda’s pending U.S. patent expiration in 2028 presented a chance to buy shares at a discounted valuation. We believe opportunities to extend Keytruda’s duration through life cycle management are underappreciated. More importantly, discounted cash flows from products already on market cover today’s entire stock price, meaning there is minimal value ascribed to a promising pipeline with strong sales potential. We believe Merck is led by a capable management team that looks to reinvest these cash flows in an accretive manner.”