Merck: Murky Is A Better Description – Strong Sell (Technical Analysis)

Summary:

  • Merck is a blue-chip stock, but that doesn’t mean I want to own it here. The risk of loss is too high, based on several metrics I track.
  • Technical indicators and charts suggest high risk for MRK, with the stock repeatedly breaking down and showing negative trends.
  • MRK’s current dividend yield and price-to-sales ratio indicate it’s expensive and not a good buy at present.
  • MRK remains on my watchlist, awaiting a lower-risk buying opportunity, but it’s a strong sell given its current high-risk profile.

Merck & Co. headquarters in Silicon Valley

Sundry Photography

My previous article “featured” a set of 11 stocks out of the 30 in the Dow Jones Industrial Average that have earned zero returns over periods of a few years to a quarter-century. These are not penny stocks. They are blue


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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