13 Best Cheap Stocks to Invest in for Beginners

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

Forward P/E: 9.02

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people.

Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.

On May 14, Leerink Partners analyst Daina Graybosch maintained a Buy rating on Merck & Co., Inc. (NYSE:MRK), raising the associated price target to $115.00. Although the risks related to CMS’s draft guidance for Medicare Drug Price Negotiation could potentially affect Merck & Co., Inc.’s (NYSE:MRK) strategy to maintain Keytruda’s value, the analyst believes in the company’s positive outlook.

According to the draft guidelines, the subcutaneous Keytruda could be categorised with the infusion version for price negotiations, affecting its market share. However, the analyst opined that the stock’s price target remains higher than its current level even under the more conservative scenario of the subcutaneous version capturing a smaller market share, which suggests meaningful upside for Merck & Co., Inc. (NYSE:MRK).