10 Undervalued Wide Moat Stocks to Buy Now

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

Forward Price-to-Earnings: 11.57x

Number of Hedge Fund Holders: 92

Merck & Co., Inc. (NYSE:MRK) is one of the best undervalued wide moat stocks.

With competition rising to the company’s cancer therapy Keytruda, Merck & Co., Inc. (NYSE:MRK) is setting itself up for long-term growth. On January 12, 2026, the company raised its outlook for new growth drivers. Accordingly, Merck projects $70 billion in revenue from emerging businesses by the mid-2030s.

Merck & Co., Inc. (NYSE:MRK) expects cardiometabolic and respiratory treatments to generate $20 billion, up from a prior forecast of $15 billion. Meanwhile, infectious disease drugs are projected at $15 billion, compared with $5 billion previously. The increase in expectations reflects accelerated launch plans and an expanding late-stage pipeline that has nearly tripled since 2021, including acquisitions like Acceleron.

The accelerated momentum was showcased earlier on January 8, 2026, when Reuters reported that Merck & Co., Inc. (NYSE:MRK) is working toward a $28-32 billion acquisition of Revolution Medicines, a deal not yet finalized. The deal, which could be the largest in nearly three years, is expected to add over $10 billion in risk-adjusted global sales by 2035. With this move, the company aims to offset patent expirations and strengthen its oncology pipeline.

Merck & Co., Inc. (NYSE:MRK), a healthcare provider, offers pharmaceutical, vaccines, biologics, and animal health products. The company focuses on innovation, pipeline expansion, and therapies for human and animal disease management worldwide.

While we acknowledge the potential of MRK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRK and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: What Are the Best Stocks to Buy Right Now? and 10 Stocks Under $1 That Will Explode.

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