Jim Cramer Broke Down 16 Stocks Including Pharma Plays for Rising Oil

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

Jim Cramer reviewed Merck & Co., Inc. (NYSE:MRK) while breaking down 16 stocks for a market facing higher energy costs and economic uncertainty. Cramer was bullish on the stock as he stated:

Next, let’s check out the daily chart of Merck, which, remember, is a lot based on Keytruda, an amazing oncological drug. Lang says this is another stock with good money flow… Chaikin Money Flow. It’s in very bullish territory…. Money managers are happily accumulating the shares. Merck’s quietly rallied 39% since the end of October with an intact uptrend and a series of higher highs and higher lows. Not long ago, Merck pulled back below its 50-day moving average, but over the last couple of days, it’s broken out again that key level. It’s very bullish.

Of course, Merck has still pulled back significantly from its February highs. But if you look at the chart, Lang points out that recent sell-offs of about 3 to 8% have been ideal entry points in Merck. And that’s exactly what we had this month before the stock caught a bid this week. I want you to wait for the next one. I think that this one’s happened. There’ll be another one. It’s like a bus. There’ll be another one coming around. Meanwhile, stock sports a nearly 3% yield. Merck is currently trading at $119 and change.

Lang could see it running all the way to $130 before year-end. That may not sound like very much, but if we’re really going into an oil shock-induced slowdown, I think this one’s likely an outperformer. Today, we learned that Merck is acquiring a clinical-stage cancer drug company for $6.7 billion. They’re picking up an exciting potential treatment for chronic myeloid leukemia here, and the market lapped it up. I was surprised because it doesn’t have any earnings.

Merck & Co., Inc. (NYSE:MRK) is a healthcare company that provides a wide range of human and veterinary pharmaceuticals, vaccines, and health solutions. We recently covered the stock while discussing the S&P 500’s most profitable stocks. You can read about it here.

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