Kevin O’Leary’s Stock Portfolio: 15 Stock Picks for 2025

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

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) is a leading American multinational pharmaceutical company, historically linked to the original Merck Group established in Germany in 1668. Known internationally as Merck Sharp & Dohme (MSD), the company is known for offering prescription drugs, vaccines, biologic therapies, and animal health products.

The company’s revenue increased by 4.4% to $16.7 billion during the third quarter of 2024, exceeding expectations by $190 million. Adjusted earnings per share came in at $1.57, up from $2.13 the previous year, and in line with expectations. Keytruda remains the company’s primary driver of growth, with revenue increasing by 17% to $7.4 billion during the quarter.

On January 17, Guggenheim adjusted its outlook on Merck & Co., Inc. (NYSE:MRK), reducing the company’s price target from $130 to $122 while maintaining a Buy rating on the stock. The revision is primarily due to several updates to the firm’s financial model for the pharmaceutical giant. Guggenheim’s updates to the model include accounting for the fourth quarter of 2024’s in-process research and development (IPR&D) expenses, stemming from license agreements for LaNova LM-299 and Hansoh HS-10535.

GreensKeeper Asset Management stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”