5 Best Cancer Stocks to Buy Now

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

Number of Hedge Fund holders: 79

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company. The company produces vaccines, medicines, and even animal health products. 

Merck & Co., Inc. (NYSE:MRK)’s blockbuster cancer drug is Keytruda, which accounts for 36% of the company’s total revenue. The drug’s sales in the June quarter grew by 26% on a YoY basis to $5.3 billion. However, the most significant growth prospect for the company’s cancer drug is the awaited approval of additional formulations for Keytruda in Japan, the US, and Europe. If the approval is granted the company can potentially gain tens of thousands of patients.

As of September 28, Merck & Co., Inc. (NYSE:MRK) has a healthy dividend yield of 3.18% compared to the industry average of 1.58%. The company has increased its dividends for 11 consecutive years.

On September 14, Berenberg analyst Luisa Hector upgraded Merck & Co., Inc. (NYSE:MRK) to Buy from Hold with a price target of $100, up from $95.

Here is what Chartwell Investment Partners had to say about Merck & Co., Inc. (NYSE:MRK) in its Q2 2022 investor letter:

“In the Dividend Equity accounts, the three best performers in Q2 includes Merck (NYSE:MRK, 3.6%), up 12.0%. Merck, like other pharma companies, is in a defensive business, but the stock also did well as peak-sales estimates for their flagship drug, Keytruda, have gone up (JPMorgan estimates $32 billion in sales by 2026).”