Should I buy Merck stock in 2025?
Is it the right time to buy Merck?
ScoreMerck & Co., Inc. (NYSE: MRK) remains a key name in the U.S. pharmaceutical sector, trading around $81.32 as of July 2025, with average daily trading volumes near 17 million shares. While the stock has faced notable volatility in recent months, its recent rebound and outperformance of Q1 2025 earnings forecasts highlight robust core operations. The company’s net income grew 7% year-over-year, driven primarily by continued expansion of KEYTRUDA, strong adoption of new products like WINREVAIR, and resilience in Animal Health. Though GARDASIL saw a sharp demand drop in China, Merck’s diversified pipeline and recent regulatory wins support a constructive market view. With a historically attractive dividend yield of 4.1% and a conservative PER of 11.8, Merck stands out for stable returns and disciplined innovation. The pharmaceutical sector, now favoring cost-efficient growth and durable franchises, provides a supportive backdrop. Based on consensus from 12 major national and international banks, the stock’s target price is $106, reflecting optimism for continued pipeline expansion and margin improvement. For investors seeking blue-chip exposure and growth in healthcare, Merck presents a compelling opportunity at current levels.
- ✅Strong pipeline boosted by recent acquisitions and new indications.
- ✅Consistent net income and earnings per share growth.
- ✅KEYTRUDA remains a global leader in oncology therapy.
- ✅Attractive 4.1% dividend yield and stable payout record.
- ✅Steady R&D investment anchors long-term innovation.
- ❌Short-term sales volatility from GARDASIL weakness in China.
- ❌Exposure to rising international tariffs and competitive pricing.
Score- ✅Strong pipeline boosted by recent acquisitions and new indications.
- ✅Consistent net income and earnings per share growth.
- ✅KEYTRUDA remains a global leader in oncology therapy.
- ✅Attractive 4.1% dividend yield and stable payout record.
- ✅Steady R&D investment anchors long-term innovation.
Is it the right time to buy Merck?
- ✅Strong pipeline boosted by recent acquisitions and new indications.
- ✅Consistent net income and earnings per share growth.
- ✅KEYTRUDA remains a global leader in oncology therapy.
- ✅Attractive 4.1% dividend yield and stable payout record.
- ✅Steady R&D investment anchors long-term innovation.
- ❌Short-term sales volatility from GARDASIL weakness in China.
- ❌Exposure to rising international tariffs and competitive pricing.
Score- ✅Strong pipeline boosted by recent acquisitions and new indications.
- ✅Consistent net income and earnings per share growth.
- ✅KEYTRUDA remains a global leader in oncology therapy.
- ✅Attractive 4.1% dividend yield and stable payout record.
- ✅Steady R&D investment anchors long-term innovation.
- What is Merck?
- How much is Merck stock?
- Our full analysis of Merck stock
- How to buy Merck stock in the US?
- Our 7 tips for buying Merck stock
- The latest news about Merck
- FAQ
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At HelloSafe, our expert has been tracking Merck's performance for over three years. Every month, over a million users in the US trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Merck.
What is Merck?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | US-based, providing global exposure in the pharmaceutical and healthcare sectors. |
| 💼 Market | NYSE (New York Stock Exchange) | Listed on the NYSE, ensuring high liquidity and strong investor protections. |
| 🏛️ ISIN code | US58933Y1055 | US ISIN verifies compliance with US and international regulatory requirements. |
| 👤 CEO | Robert M. Davis | Leading since 2021, Davis drives Merck’s innovation and expansion strategy. |
| 🏢 Market cap | $204.18 billion | Large-cap status supports institutional interest despite recent share price volatility. |
| 📈 Revenue | ~$64.8 billion (projected 2025) | Strong revenue base driven by KEYTRUDA and a diverse vaccine portfolio. |
| 💹 EBITDA | ~$22.9 billion (TTM estimated) | Healthy EBITDA margin reflects efficient operations and robust profitability. |
| 📊 P/E Ratio (Price/Earnings) | 11.82 | Attractive valuation for a major pharma player, indicating further upside potential. |
How much is Merck stock?
The price of Merck stock is rising this week. Merck currently trades at $81.32 per share, with a 24-hour increase of +0.71% and a weekly gain of +3.15%. The company boasts a market capitalization of $204.18 billion and an average 3-month trading volume of 16.94 million shares. Its P/E Ratio stands at 11.82, while the dividend yield is an attractive 4.09%, and the stock’s beta is a low 0.40, indicating lower volatility. This favorable combination of strong fundamentals and reduced volatility makes Merck appealing for investors seeking stability and long-term growth.
Our full analysis of Merck stock
Following a comprehensive review of Merck’s latest financial results and the stock’s trajectory over the past three years, our analysis incorporates a blend of up-to-date financial indicators, technical signals, market data, and competitive benchmarks, all synthesized through proprietary algorithms. This robust approach is designed to highlight both Merck’s current positioning and its future potential. So, why might Merck stock once again become a strategic entry point into the pharmaceutical sector in 2025?
Recent performance and market context
Merck stock has demonstrated a significant uptick this week, trading at $81.32 with a healthy 3.15% rise over the last seven days and a 0.71% increase during the most recent trading session. Despite a more challenging twelve-month stretch—down 35.39% year-over-year and 17.98% over six months—these recent gains signal a potential turning point for the stock. The rebound is underpinned by a series of positive events, notably analyst-beating first-quarter earnings, the strength of the oncology portfolio (especially KEYTRUDA), the successful launch of WINREVAIR, and innovative pipeline expansion. In a sector benefiting from resilient healthcare demand, accelerated R&D, and ongoing regulatory support, Merck’s market capitalization of $204.18 billion and blue-chip status offer long-term fundamental stability—making current price levels particularly attractive within the dynamic US equity landscape.
Technical analysis
Current technical signals for Merck outline a constructive backdrop, with momentum indicators and moving averages supporting a nascent bullish phase. The 14-day RSI stands at 51.36—balanced and suggesting neither overbought nor oversold conditions, which is conducive to further upside potential. The MACD (12,26,9) is positive at 0.52, generating a buy signal. Moving averages reinforce this outlook: the stock’s price is above both the 50-day and 100-day moving averages ($80.12), as well as the supportive 200-day average ($79.03), pointing to strengthening intermediate trends. Notably, immediate technical support is found at $80.70, creating a solid floor just beneath current trading levels, while primary resistance is set at $82.60—a break above which could ignite further medium-term advances. The Fibonacci pivot at $81.99 highlights an inflection zone, suggesting tactical opportunities for new entrants. While the latest global technical summary is neutral, most signals appear to be aligning positively, especially as the stock recovers from its recent decline.
Fundamental analysis
Merck’s recent and prospective financial results underscore why now may be a uniquely favorable time to consider the stock. Q1 2025 sales reached $15.53 billion, surpassing expectations even against a challenging global backdrop. Net earnings climbed 7% year-over-year, with reported GAAP earnings per share of $2.01 and non-GAAP EPS of $2.22, again beating consensus. The company’s operating profit margin remains healthy, backed by an 82% non-GAAP gross margin, ranking among the highest in the sector. Most impressively, profitability and dividend strength have held up: Merck delivers a quarterly dividend of $0.81 per share, translating to an annual yield of 4.09%—well above the peer average. The P/E ratio stands at just 11.82, presenting an attractive valuation for a market leader with significant growth levers. Merck’s balance sheet and capital allocation priorities further support this case: ongoing R&D investments (over $12 billion in the US since 2018) and prudent debt management (debt-to-equity below 72%) illustrate disciplined stewardship and readiness for new market opportunities. Combined, these factors highlight why Merck’s fundamentals justify renewed investor interest.
Volume and liquidity
The stock enjoys robust daily liquidity, with an average three-month trading volume of 16.94 million shares, accommodating both institutional and retail activity without distorting price discovery. With approximately 2.51 billion shares outstanding and a substantial public float, Merck can easily absorb larger trades—an important consideration for both individual investors and funds. High and consistent trading volumes enable quicker response to news and catalysts, with the added benefit of dynamic yet rational valuation adjustments. Market confidence is underscored by sustained analyst coverage and strong buy-side engagement, making Merck a highly accessible and flexible holding for a variety of portfolio strategies.
Catalysts and positive outlook
- Pipeline innovation: The company has tripled its pipeline through strategic acquisitions and internal development. WINREVAIR, a groundbreaking drug for pulmonary arterial hypertension, has set new industry benchmarks in efficacy, while multiple indications for flagship KEYTRUDA continue to receive expanded approvals and FDA priority review.
- Vaccine leadership: New European authorizations for CAPVAXIVE and ongoing success in pediatric and adult immunization portfolios reinforce Merck’s status as a global vaccine leader.
- Strategic M&A and partnerships: The exclusive licensing agreement with Hengrui Pharma for an oral Lp(a) inhibitor broadens Merck’s cardiovascular franchise and future revenue streams.
- Manufacturing expansion: A state-of-the-art, $1 billion vaccine production facility in North Carolina demonstrates management’s commitment to scaling innovation and supply chain resilience.
- ESG and sustainability: Merck’s robust environmental, social, and governance strategy elevates its appeal among responsible investors, including recent progress in green R&D investment and patient access initiatives.
Sector momentum further supports these positive fundamentals, as the pharmaceutical industry continues benefitting from secular trends in healthcare innovation, population aging, and global accessibility improvements. The US regulatory environment remains supportive of breakthrough designations and fast-track approvals, all of which play to Merck’s strengths and ambition.
Investment strategies
- Short-term: Tactical buyers may find opportunities on minor dips near support ($80.70), with proximity to major catalysts (such as the Q2 2025 earnings report on July 29 and pending FDA approvals) likely to trigger volatility and momentum reversals.
- Medium-term: Investors targeting growth through coming quarters can leverage the company’s expanding pipeline, strong profit margins, and capital return programs, all of which could re-rate the stock toward the $101.79–$110.34 near-term consensus targets.
- Long-term: For asset allocators and income seekers, Merck combines a generous and secure dividend with sector leadership, a diversified revenue base, and a proven ability to innovate. The stock’s beta of 0.40 ensures that it can function as a defensive anchor, stabilizing broader portfolios and compounding value over multi-year horizons.
Optimal positioning may be achieved by accumulating shares on technical pullbacks or in advance of high-visibility product milestone announcements. For those focused on risk management, the stock’s low volatility and robust liquidity make it a natural complement to higher-growth, risk-on equity exposures.
Is it the right time to buy Merck?
Merck’s unrivaled strength in oncology, diverse vaccine pipeline, disciplined capital allocation, and well above-average yield all combine to set the stage for renewed outperformance. The undervalued P/E, recent bounce from key support, and continuing flow of new product milestones suggest that Merck may well be entering a new bullish phase, with consensus price targets offering notable upside from current levels. Market sentiment, reflected by a “Buy” consensus from 32 leading analysts, further strengthens this conviction.
For investors seeking a blend of resilient growth, industry leadership, and secure income, Merck seems to represent an excellent opportunity at current prices. As the company sets sights on new therapeutic breakthroughs and expanded global reach, the coming quarters could offer significant rewards to those willing to look beyond short-term volatility and anchor their portfolios to long-term innovation and value creation.
How to buy Merck stock in the US?
Buying Merck stock online is both straightforward and secure, thanks to user-friendly platforms provided by regulated US brokers. Investors can choose between classic spot purchases—where they own the shares outright—and trading via CFDs, which lets them speculate on price movements with leverage and without owning the stock. Each method suits different objectives and risk profiles. To help you select the most suitable broker for your needs, you’ll find a professional broker comparison further down the page.
Cash buying
A cash purchase means you buy Merck shares directly and become a registered shareholder, with potential dividends and voting rights. Brokers typically charge a fixed commission per order, often around $5 per trade for US-listed stocks.
Gain scenario
If the Merck share price is $81.32, you can buy around 12 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on Merck’s price movements without owning the actual shares. You can use leverage—amplifying gains (and losses)—and pay fees in the form of a spread (the difference between buy and sell price), plus possible overnight financing costs for holding a position over multiple days.
Gain Scenario: CFD with Leverage
You open a CFD position on Merck shares, with 5x leverage. This gives you a market exposure of $5,000 on a $1,000 deposit.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, always compare brokers’ fees and features, as these can affect your results over time. Ultimately, the choice between spot buying and CFD trading depends on your investing objectives, risk tolerance, and desire for direct share ownership or leveraged trading. Take time to review your options—our detailed broker comparison can help you get started.
Check out the USA's best brokers!Compare brokersOur 7 tips for buying Merck stock
| 📊 Step | 📝 Specific tip for Merck |
|---|---|
| Analyze the market | Review trends in the pharmaceutical sector and monitor regulatory updates that may affect Merck’s product pipeline. |
| Choose the right trading platform | Opt for a U.S. broker that offers NYSE access, competitive commissions, and robust research tools for Merck trades. |
| Define your investment budget | Determine how much to invest in Merck, balancing your allocation with other sectors for a diversified portfolio. |
| Choose a strategy (short or long term) | Decide if you want to capitalize on short-term catalysts like FDA approvals or hold for Merck’s dividend and steady growth potential. |
| Monitor news and financial results | Track quarterly earnings, drug approvals, and major R&D investments, as these often drive Merck’s price. |
| Use risk management tools | Utilize stop-loss orders and portfolio limits to safeguard against unexpected movements in Merck shares. |
| Sell at the right time | Reassess your position when Merck reaches major price targets or when sector conditions shift, to maximize returns. |
The latest news about Merck
Merck’s stock has rebounded 3.15% week-over-week, reflecting renewed market confidence after Q1 results. This recent upward movement comes on the back of solid financial performance and exceeds sector averages, supported by strong US trading volumes and renewed institutional interest in the pharmaceutical leader.
Q1 2025 results for Merck surpassed analyst expectations for revenue and GAAP EPS. The company posted $15.53 billion in revenue and a GAAP EPS of $2.01, both registering a 7% year-over-year increase. This robust performance was driven by the continued expansion of KEYTRUDA, growth in Animal Health, and positive contributions from new product lines like WINREVAIR.
Analyst sentiment for Merck remains optimistically tilted, with consensus price targets indicating substantial upside. The current mean analyst objective is $101.79, markedly above the current price of $81.32, with several firms reiterating “Buy” ratings. The consensus points to strong momentum and sector resilience, particularly given Merck’s leadership in oncology and vaccine portfolios.
Merck’s strategic US investments and pipeline expansion underpin future growth opportunities. Over $12 billion has been invested in US R&D and infrastructure since 2018, and the recent opening of a $1 billion vaccine production facility in North Carolina signals the company’s long-term commitment to the US healthcare landscape. These moves support manufacturing capacity and enhance supply chain security, key assets for US-based growth.
New FDA Priority Reviews and key product approvals act as near-term catalysts for the stock. Recent regulatory milestones include multiple Priority Reviews for leading therapies and the continued success of KEYTRUDA in early cancer indications. These catalysts are poised to support both near- and medium-term stock appreciation, enhancing Merck’s position domestically and globally.
FAQ
What is the latest dividend for Merck stock?
Merck currently pays a quarterly dividend of $0.81 per share, with the most recent ex-dividend date on June 16, 2025. This translates to an attractive annual yield and reflects a stable and growing distribution history, as the company has a well-established policy of rewarding shareholders. Merck’s resilience and consistent profitability support its reliable dividend payments.
What is the forecast for Merck stock in 2025, 2026, and 2027?
Based on the current share price of $81.32, projections suggest values near $105.72 for the end of 2025, $121.98 for 2026, and $162.64 for 2027. These optimistic forecasts are supported by robust earnings, a record pipeline of new drugs, and the company’s dominant leadership in key therapeutic areas.
Should I sell my Merck shares?
Holding Merck shares may be favorable for long-term investors, given the company’s strong fundamentals, low price-to-earnings ratio, and resilient market positioning. Merck remains a leader in oncology and vaccines, with a promising pipeline and a history of consistent dividend growth. Recent analyst outlooks and positive financial momentum further support a patient investment approach.
How are dividends and capital gains from Merck taxed for US investors?
For US residents, Merck dividends are typically taxed as qualified dividends, usually at rates lower than regular income if holding periods are met. Capital gains are taxed based on the duration of your investment—long-term gains receive preferential tax treatment. Merck shares can also be held in tax-advantaged accounts, such as IRAs or 401(k)s, to help reduce current tax exposure.
What is the latest dividend for Merck stock?
Merck currently pays a quarterly dividend of $0.81 per share, with the most recent ex-dividend date on June 16, 2025. This translates to an attractive annual yield and reflects a stable and growing distribution history, as the company has a well-established policy of rewarding shareholders. Merck’s resilience and consistent profitability support its reliable dividend payments.
What is the forecast for Merck stock in 2025, 2026, and 2027?
Based on the current share price of $81.32, projections suggest values near $105.72 for the end of 2025, $121.98 for 2026, and $162.64 for 2027. These optimistic forecasts are supported by robust earnings, a record pipeline of new drugs, and the company’s dominant leadership in key therapeutic areas.
Should I sell my Merck shares?
Holding Merck shares may be favorable for long-term investors, given the company’s strong fundamentals, low price-to-earnings ratio, and resilient market positioning. Merck remains a leader in oncology and vaccines, with a promising pipeline and a history of consistent dividend growth. Recent analyst outlooks and positive financial momentum further support a patient investment approach.
How are dividends and capital gains from Merck taxed for US investors?
For US residents, Merck dividends are typically taxed as qualified dividends, usually at rates lower than regular income if holding periods are met. Capital gains are taxed based on the duration of your investment—long-term gains receive preferential tax treatment. Merck shares can also be held in tax-advantaged accounts, such as IRAs or 401(k)s, to help reduce current tax exposure.
