12 Most Undervalued Dow Stocks to Buy According to Analysts

Page 10 of 10

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

Price Target Upside: 36.82% 

PE Ratio: 12.10 

Merck & Co., Inc. (NYSE:MRK) tops our list for being one of the most undervalued stocks. It is a global healthcare leader in pharmaceuticals, vaccines, biologics, and animal health products.

A major recent development is the FDA approval of KEYTRUDA QLEX, a new subcutaneous injectable formulation of the company’s blockbuster cancer therapy Keytruda, on September 19, 2025. This injection can be administered in one to two minutes, compared with the traditional 30-minute intravenous infusion, enhancing patient convenience and clinical efficiency. The U.S. rollout is expected by late September, with projections suggesting it could capture 30-40% of Keytruda users within two years, helping MRK maintain market leadership amid biosimilar competition.

In Europe, Merck & Co., Inc. (NYSE:MRK) received a positive opinion from the European Medicines Agency for ENFLONSIA (clesrovimab), an RSV preventive for infants during their first RSV season. If approved, it will be the first weight-independent RSV preventive option for European infants, addressing a significant unmet need.

Financially, Merck & Co., Inc. (NYSE:MRK) reported strong Q2 2025 results. Analysts continue to highlight its robust vaccine franchise, animal health segment, and innovative oncology treatments, including combination therapies with Keytruda. The corporation is also advancing novel drug candidates, such as raludotatug deruxtecan, which recently received FDA Breakthrough Therapy Designation for platinum-resistant ovarian and related cancers, accelerating development for patients with high unmet medical needs.

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 10 of 10