5 Most Undervalued Dow Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 82

Merck & Co., Inc. (NYSE:MRK) is not only a strong pharma stock with long-term growth potential, it is also a solid dividend payer, with over a decade of consistent dividend increases. Recently, Merck & Co., Inc. (NYSE:MRK) said its famous drug Keytruda, with chemotherapy, met the primary goal of progression free survival (PFS) in patients with a type of cancer of the uterus in a phase 3 trial.

Of the 920 hedge funds tracked by Insider Monkey at the end of the third quarter of 2022, 82 funds reported owning stakes in Merck & Co., Inc. (NYSE:MRK). The biggest stakeholder of Merck & Co., Inc. (NYSE:MRK) during the period was Ken Fisher’s Fisher Asset Management which owns a $1 billion stake in the firm.

Baron Funds made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter:

“Merck & Co., Inc. (NYSE:MRK) is a large-cap pharmaceutical company with a deep heritage in drug discovery. Share gains were led by the continued growth of key asset Keytruda, the leading immune oncology agent used to treat a variety of cancers. Shares also benefited from increased investor interest as Merck proves its ability to scale its Gardasil vaccine that had previously been constrained by supply issues. We retain long-term conviction, as we expect Keytruda to solidify its position as the best-selling biopharmaceutical drug of all time.”