Merck & Co.
MRK
$115.17
+0.23%
Merck & Co., Inc. is a global pharmaceutical company that develops and markets a broad portfolio of medicines and vaccines across therapeutic areas including oncology, cardiometabolic disease, infectious diseases, and animal health. The company is a market leader in oncology, primarily driven by its blockbuster immuno-oncology drug Keytruda, and maintains a strong position in vaccines with products like Gardasil for HPV. The current investor narrative is dominated by the company's efforts to manage the lifecycle of Keytruda ahead of patent expiries, diversify its pipeline through strategic acquisitions like Cidara Therapeutics, and navigate the high-risk nature of clinical trials, as evidenced by recent setbacks in combination cancer studies.…
MRK
Merck & Co.
$115.17
Related headlines
MRK 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Merck & Co.'s 12-month outlook, with a consensus price target around $149.72 and implied upside of +30.0% versus the current price.
Average Target
$149.72
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$92 - $150
Analyst target range
Insufficient analyst coverage available. The provided data indicates only 2 analysts, which is minimal for a company of Merck's size and prominence. This limited coverage could be an artifact of the data source or a specific snapshot in time, but it implies a potential gap in consensus visibility. Typically, a major pharmaceutical like Merck would have extensive coverage from dozens of firms; the absence of such data here makes it difficult to gauge institutional sentiment accurately. The lack of a clear consensus target price and recommendation spread means investors must rely more heavily on their own fundamental and valuation analysis, and should be aware that price discovery may be less efficient than for more widely covered peers.
MRK Technical Analysis
Merck's stock is in a sustained uptrend, evidenced by a robust 1-year price change of +45.50%. The current price of $119.05 positions the stock at approximately 87% of its 52-week range ($76.66 to $125.14), indicating it is trading near its highs, which reflects strong momentum but also potential for overextension. The stock has gained 4.94% over the past month, outpacing the S&P 500's -0.08% return, demonstrating positive short-term momentum. However, the 3-month return of 2.98% lags the S&P 500's 12.00% gain, suggesting a recent period of consolidation or underperformance relative to the broader market after its powerful longer-term run. Key technical levels are the 52-week high of $125.14, which serves as immediate resistance, and the 52-week low of $76.66, which defines major support. A breakout above $125.14 would signal a resumption of the primary uptrend, while a sustained break below the recent lows near $110 could indicate a deeper correction. The stock exhibits low market-relative volatility with a beta of 0.218, meaning it is roughly 78% less volatile than the SPY, which is typical for a large-cap, defensive healthcare name and influences position sizing for risk-averse portfolios.
Beta
0.22
0.22x market volatility
Max Drawdown
-11.9%
Largest decline past year
52-Week Range
$77-$125
Price range past year
Annual Return
+42.3%
Cumulative gain past year
| Period | MRK Return | S&P 500 |
|---|---|---|
| 1m | +3.4% | +1.5% |
| 3m | +0.6% | +13.4% |
| 6m | +14.4% | +10.9% |
| 1y | +42.3% | +24.5% |
| ytd | +8.2% | +10.0% |
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MRK Fundamental Analysis
Merck's revenue trajectory shows steady growth, with Q4 2025 revenue of $16.40 billion representing a 4.97% year-over-year increase. The Pharmaceutical segment, generating $14.84 billion in the latest period, is the primary growth driver, while the Animal Health segment contributed $1.51 billion. The revenue growth, though positive, appears to be decelerating from higher rates seen in prior quarters, focusing investor attention on pipeline diversification. The company is highly profitable, with Q4 2025 net income of $2.96 billion and a gross margin of 92.71%, reflecting the high-margin nature of its pharmaceutical products. However, profitability can be volatile quarter-to-quarter due to acquisition-related charges, as seen in the swing to a quarterly loss reported in April 2026 news. The trailing twelve-month net margin is a healthy 28.12%. Financially, Merck is sound with a debt-to-equity ratio of 0.96, indicating moderate leverage, and a strong current ratio of 1.54 for liquidity management. The company generates substantial cash, with trailing free cash flow of $12.36 billion, providing ample resources to fund internal R&D, pay dividends (payout ratio of 44.79%), and pursue strategic acquisitions without over-reliance on external financing.
Quarterly Revenue
$16.4B
2025-12
Revenue YoY Growth
+0.04%
YoY Comparison
Gross Margin
+0.92%
Latest Quarter
Free Cash Flow
$12.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is MRK Overvalued?
Given Merck's positive net income, the primary valuation metric is the Price-to-Earnings (PE) ratio. The stock trades at a trailing PE of 14.43x and a forward PE of 12.45x. The lower forward multiple suggests the market anticipates earnings growth. Compared to sector averages, Merck's valuation appears reasonable; its forward PE of 12.45x is likely at a discount to the broader biopharma industry average, which often trades in the mid-to-high teens, reflecting its status as a large-cap, slower-growth incumbent rather than a high-growth biotech. Historically, Merck's current trailing PE of 14.43x sits well below its own historical range observed in the provided data, which has seen peaks above 20x and troughs in the single digits. Trading near the lower end of its historical band suggests the stock is not priced for excessive optimism and may offer a relative value opportunity, assuming its fundamental growth profile remains intact and Keytruda's patent cliff is successfully managed.
PE
14.4x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -57x~32x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.6x
Enterprise Value Multiple
