Merck Has Become Very Cheap Again

Summary:

• Merck’s shares have declined, making its dividend yield climb and valuation compress, presenting an attractive investment opportunity at current prices.
• Keytruda, the company’s largest drug, continues to show strong revenue growth and potential for further approvals and market expansion.
• MRK’s diverse drug portfolio, including Gardasil and Winrevair, and its robust pipeline with numerous phase II and III programs support future growth.
• Merck is trading at a significant discount compared to its historical valuation, offering a solid dividend yield and potential for attractive total returns.

Article Thesis

Merck & Co., Inc. (NYSE:MRK) is a leading pharma company with an attractive drug portfolio that has seen its shares decline significantly in the recent past. This has made Merck’s dividend yield climb, while its valuation has

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MRK over 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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