Jim Cramer Discussed 11 Stocks and the Tech Battleground

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

Number of Hedge Fund Holders: 92

Merck & Co., Inc. (NYSE:MRK) is one of the stocks Jim Cramer discussed, along with the tech battleground. Cramer highlighted the company’s strategic planning for when Keytruda loses patent protection. He commented:

“The people who run this company are not idiots. They’ve long known that Keytruda would lose patent protection, so, for years, they’ve been making acquisitions to build up their pipeline… Verona is focused on respiratory diseases, and they already have one drug on the market, the first new maintenance treatment for chronic obstructive pulmonary disease in more than 20 years. It will be another blockbuster, I predict…So, Merck’s been making ample preparation for a world without Keytruda exclusivity, and the analysts are starting to notice. Last Monday, Wells Fargo upgraded the stock… note entitled, ‘we can see a future beyond Keytruda.’

Given the strength of this pipeline, this analyst sees Merck ‘entering a catalyst-rich period in the next 12 to 18 months with readouts across its pipeline.’ In fact, they said that Merck may have added or de-risked over $20 billion of unadjusted peak sales just in the last three to six months. It sounds good to me. They’re no longer predicting a huge drop off in sales in 2029 through 2031, the first four years where Keytruda will be off patent, and they see Merck returning to growth after 2031. Look, I think it could actually happen sooner than that, which is why I like the stock so much…

So let’s put this together. In general, the big pharma stocks have been doing much better since the end of October, as Wall Street’s gotten a lot more antsy about tech, and RFK Junior hasn’t really cracked down on the industry and health and human services. Meanwhile, the previously downtrodden Merck has become a standout performer. The bottom line: As a long-term admirer of Merck, and I’m talking about decade after decade, I do love to see this new trajectory. Of course, I wouldn’t be surprised if there are setbacks along the way. That’s the nature of the drug business. But for now, Merck’s a very cheap stock that still doesn’t even get nearly enough love for its terrific pipeline, or for that matter, its solid 3.4% dividend yield. Believe me, you could do a lot worse.”

Merck & Co., Inc. (NYSE:MRK) is a healthcare company that provides a wide range of human and veterinary pharmaceuticals, vaccines, and health solutions.