10 Worst Blue Chip Stocks to Buy

3. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 91

% Decline on a YTD Basis: ~23.3%

Merck & Co., Inc. (NYSE:MRK) is a leading global healthcare company. Bank of America Securities analyst Tim Anderson reiterated a “Buy” rating on the company’s stock, setting a price objective of $99.00. The analyst’s rating is backed by factors demonstrating the company’s growth potential and undervaluation. Despite the minor impacts from tariffs and foreign exchange in Q1 2025, the analyst believes that overall financial performance is robust. Also, Anderson opines that Merck & Co., Inc. (NYSE:MRK)’s stock remains undervalued given the growth prospects and strong pipeline. The company has made healthy progress to start the year, with higher contributions from its newer commercialized medicines and vaccines and continued advancement of the pipeline.

KEYTRUDA sales saw an increase of 6% YoY (excluding the impact of foreign exchange) in Q1 2025. The growth was aided by higher global uptake in earlier-stage indications, which include triple-negative breast cancer, renal cell carcinoma, and non-small cell lung cancer, and continued robust global demand from metastatic indications, which include increased uptake in bladder, endometrial, and microsatellite instability-high (MSI-H) cancers, partially mitigated by the timing of wholesaler purchases in the US. Overall, Merck & Co., Inc. (NYSE:MRK)’s emphasis on oncology, vaccines, and emerging therapeutic areas places it well to capitalize on increasing healthcare needs.

GreensKeeper Asset Management, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”