16 Most Undervalued Stocks to Buy Now

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

Forward P/E as of 22 August: 14.47x

Expected EPS Growth this Year: 434.4%

Number of Hedge Fund Holders: 96

Merck & Co., Inc. (NYSE:MRK) is engaged in making pharmaceutical products to treat several conditions in several therapeutic areas, such as cardiometabolic disease, cancer, and infections.

Wall Street analysts believe that the company has done a great job by diversifying its drug portfolio and expanding throughout different geographies. After all, it mints money from vaccines and immunotherapy drugs. Moving forward, the company’s earnings growth is expected to stem from its recent acquisition of a biotech firm, Harpoon Therapeutics. This acquisition should help Merck & Co., Inc. (NYSE:MRK) in boosting its oncology pipeline directly.

Additionally, it might develop several other opportunities for the development of powerful new combination therapies. Harpoon’s technology platform is quite versatile and effective at creating cancer-fighting therapies.

Harpoon’s strategies are likely to be compatible or even synergistic with several other old and new cancer medicines such as chemotherapies, cell therapies, and antibody-drug conjugates. This means that the company might not be required to steal the market share to gain traction.

For FY 2024, Merck & Co., Inc. (NYSE:MRK) raised and narrowed its expected worldwide sales range to be between $63.4 billion – $64.4 billion. It expects non-GAAP EPS of between $7.94 and $8.04. Analysts at Cantor Fitzgerald reaffirmed an “Overweight” rating on the shares of Merck & Co., Inc. (NYSE:MRK), giving it a price target of $155.00 on 18th June.

Carillon Tower Advisers, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“After posting lackluster returns in 2023, Merck & Co., Inc. (NYSE:MRK) got off to a strong start in January by raising the long-term sales forecasts for its oncology and cardiology pipelines and reporting solid fourth-quarter results, coupled with strong financial guidance for 2024. Merck shares also finished the quarter strong after receiving U.S. Food and Drug Administration approval in late March for a new cardiology medicine with the potential to contribute significantly to sales growth over the next several years.”