15 Best Large-Cap Value Stocks to Buy as the Recession Hits

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

Number of Hedge Fund Holders: 91

Forward P/E as of April 15: ~8.7x

Merck & Co., Inc. (NYSE:MRK) operates as a healthcare company. Nico Chen, an analyst from. DBS, maintained a “Buy” rating on the company’s stock, and the associated price target was $100.00. The analyst’s rating is backed by factors demonstrating its robust market position and growth potential. As per the analyst, a significant driver of the positive outlook is KEYTRUDA, Merck & Co., Inc. (NYSE:MRK)’s blockbuster drug, which has supported it in establishing the company as a leader in oncology. KEYTRUDA sales increased 18% YoY to $29.5 billion in FY 2024. However, excluding the impact of foreign exchange, the sales went up by 22%. The analyst believes that KEYTRUDA continues to expand the company’s presence in global markets.

Elsewhere, the Goldman Sachs analyst team started coverage on the company’s stock with a “Buy” rating. As per the firm’s assessment, the market has been implying an overly pessimistic terminal growth rate for Merck & Co., Inc. (NYSE:MRK). It is not recognizing the value of the company’s pipeline and is undervaluing its Animal Health business. The Animal Health division happens to be on a growth trajectory.

GreensKeeper Asset Management, an investment management company, released the third quarter 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.”