10 Most Profitable Healthcare Stocks to Buy

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

Net Income (TTM): $19.03 billion

Operating Margin (TTM): 40.80%

Number of Hedge Fund holdings: 92

On January 21, TheFly reported that BofA analysts included Merck & Co., Inc. (NYSE:MRK) in its “US 1 List,” which includes the firm’s top investment ideas.

A day earlier, Bernstein reiterated its Market Perform rating on Merck & Co., Inc. (NYSE:MRK), with an unchanged price target of $95. While discussing headwinds related to the company’s growth prospects within this year, the firm raised the question of whether meaningful growth beyond Keytruda may only emerge in 2027.

Additionally, Bernstein highlighted the company’s renewed focus on M&As, noting the company’s “willingness to spend tens of billions” on potential strategic deals. Despite this, the firm experiences “struggle to validate if there’s a path to build confidence” in Merck & Co., Inc. (NYSE:MRK)’s short-term growth momentum. Thus, their analysis indicates a performance in line with the general market.

Overall, Merck & Co., Inc. (NYSE:MRK) has mixed analyst sentiment, with slightly more than half of analysts recommending a Buy and the remaining 45% holding a cautious view. With a consensus 1-year median price target of $120, the stock boasts an upside potential of 10.93%.

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based healthcare company developing and manufacturing human health pharmaceuticals for a range of areas. Founded in 1891, the company is committed to saving and improving lives through the power of science.