Eldred Rock Partners LLC boosted its stake in Merck and Co., Inc. (NYSE: MRK) by 12.1% during the third quarter, according to the company in its most recent filing with the SEC. The fund owned 120,880 shares of the company's stock after buying an additional 13,017 shares during the period. Merck and Co.,
Merck & Co. trades at a deep discount, reflecting market fears over the 2028 Keytruda patent cliff despite robust Q3 2025 results and pipeline momentum. MRK's diversification strategy is gaining traction: Winrevair's rapid ramp to nearly $1B, Capvaxive's $2B+ potential, and subcutaneous Keytruda QLEX extending exclusivity beyond 2028. Financial strength underpins the transition: $17.1B TTM operating cash flow, $18.2B cash, 15-year dividend growth streak, and sector-leading profitability metrics.
Merck is rated a buy, with strong earnings growth, rising cash flow, and balance sheet strength supporting a bullish outlook. Keytruda's double-digit growth and margin expansion drive MRK's profits, but future exclusivity loss in 2028 is a material risk. The company trades at a significant discount—13.8x forward PE, the lowest among peers—while showing the best YoY EBITDA growth and a PEG of 1.23.
Merck earns a cautious "Buy" rating due to an intriguing valuation and clear, somewhat manageable uncertainties, especially post-Keytruda expiry in 2028. MRK's heavy reliance on Keytruda poses risk, but Animal Health growth, pipeline depth, and margin strength offer diversification and optionality. Even in conservative scenarios, MRK could deliver ~7% annualized returns, with potential for double-digit upside if new drugs succeed and margins improve.
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Diversified Trust Co increased its holdings in shares of Merck and Co., Inc. (NYSE: MRK) by 9.6% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 207,838 shares of the company's stock after buying an additional 18,187 shares during the quarter. Diversified Trust
Chemung Canal Trust Co. increased its position in Merck and Co., Inc. (NYSE: MRK) by 21.1% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 76,338 shares of the company's stock after purchasing an additional 13,285 shares during
Boston Trust Walden Corp decreased its holdings in shares of Merck and Co., Inc. (NYSE: MRK) by 25.1% during the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 480,181 shares of the company's stock after selling 160,552 shares during the quarter. Boston Trust Walden
Perigon Wealth Management LLC boosted its position in Merck and Co., Inc. (NYSE: MRK) by 22.9% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 75,489 shares of the company's stock after buying an additional 14,081 shares during
