10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing

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

Forward P/E as of June 19: 8.16

Analysts’ Price Target Upside as of June 19: 27.04%

Number of Hedge Fund Holdings as of Q1 2025: 93

Merck & Co., Inc. (NYSE:MRK) is another biopharmaceutical company on the list of the 10 undervalued blue chip stocks analysts recommend for smart investing. On June 18, Jefferies analyst Akash Tewari maintained a “Buy” rating on the company. The associated price target for Merck & Co. stock remains at $138.00. According to the analyst, the key influence behind the positive outlook is the stability of Gardasil dosing recommendations.

On May 23, 2025, Merck affirmed its position regarding the current dosing regimens for GARDASIL 9. The company stated that the CDC recommendation should remain consistent with the approved product labeling until sufficient data are available for the FDA and European Commission to license an alternate dosing regimen. The currently approved 2-dose and 3-dose schedules for GARDASIL 9 were evaluated in extensive clinical studies that met regulatory agency standards and underwent extensive regulatory approval processes.

Gardasil is Merck’s second-largest product. The product’s sales in China have declined (e.g., 40% year-over-year in Q1 2025 and 3% in 2024), leading to a temporary halt in shipments from February through at least mid-2025 to manage inventory. Nonetheless, sales remain strong in other major regions like the US and Japan.

Merck & Co., Inc. (NYSE:MRK) is a global biopharmaceutical company. It develops and markets prescription medicines, vaccines, biologic therapies, and animal health products. Its key therapeutic areas include oncology, cardiometabolic diseases, infectious diseases, and vaccines, with major products like Keytruda, Gardasil, and Januvia.