5 Best Cancer Stocks To Buy Now

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

Number of Hedge Fund Holders: 79

Merck & Co., Inc. (NYSE:MRK) is the manufacturer of the most profitable cancer drug in the world, Keytruda. In 2020, Keytruda generated worldwide revenue of $14.38 billion, making Merck & Co., Inc. (NYSE:MRK) one of the best cancer stocks to buy now. In the second quarter of 2021, the drugmaker’s revenue from Keytruda grew 23% to $4.2 billion. The company’s total revenue in Q2 increased 23% year over year to $11.4 billion.

On October 1, Merck & Co., Inc. (NYSE:MRK) shares climbed nearly 10% following positive sentiments about the company’s COVID-19 pill, Molnupiravir.

On October 22, analyst Daina Graybosch of SVB Leerink maintained an Outperform rating on Merck & Co., Inc. (NYSE:MRK). The analyst increased her price target for the stock to $105 from $104.

Fisher Asset Management is the biggest stakeholder of the company as of the second quarter, with an $802 million stake. Overall, 79 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in the New Jersey-based company at the end of June 2021.

In its Q1 2021 investor letter, Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK), and shared their insights on the company. Here is what the fund said:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”