“Merck (MRK) is an Inexpensive Stock,” Says Jim Cramer

We recently published 8 Stocks on Jim Cramer’s Radar.  Merck & Co., Inc. (NYSE:MRK) is one of the stocks on Jim Cramer’s radars.

Pharma giant Merck & Co., Inc. (NYSE:MRK)’s shares are up by 1.9% year-to-date on the back of a strong run since early November. Before the run started, the stock was down 16.8% year-to-date on the back of several factors. The year started out with Merck & Co., Inc. (NYSE:MRK) battling with China-specific headwinds that saw it halt its Gardasil HPV vaccine shipments in the country. Gardasil suffered from an inventory buildup due to factors such as low demand and market competition. Other headwinds for the stock included a $3 billion restructuring program and a top-line growth slowdown. While Merck & Co., Inc. (NYSE:MRK)’s blockbuster cancer drug Keytruda has become a best seller worldwide, it has also increased the pressure on the firm to come up with successors.

More recently, on November 18th, Merck & Co., Inc. (NYSE:MRK) announced that a phase two trial for its Winrevair drug for patients with combined post- and precapillary pulmonary hypertension was successful to allow it to move forward to a phase three study. Bank of America raised the firm’s share price target to $120 from $105 on December 15th as it recalibrated its FY27 EPS estimates. Cramer also believes that Merck & Co., Inc. (NYSE:MRK) might be undervalued, as he commented:

“Merck is an inexpensive stock, all these stocks are coming back.”

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Disclosure: None. This article is originally published at Insider Monkey.