On February 5, 2025, Goldman Sachs reaffirmed its "Buy" rating for Merck (NYSE:MRK), maintaining its previous grade. At the time of this announcement, the stock was priced at approximately $89.63. Despite investor concerns over weak guidance, analysts continue to support Merck, as reported by Benzinga. Merck, a leading pharmaceutical company based in Rahway, is recognized for its strong dividend payouts, making it a top choice for income investors, as highlighted by Zacks Investment Research.
Merck's stock has experienced a price change of -8.79% so far this year. However, it remains attractive to income investors due to its consistent dividend payouts. Dividends are a portion of a company's earnings distributed to shareholders, providing a reliable cash flow. Academic studies indicate that dividends can significantly contribute to long-term returns, often accounting for more than one-third of total returns. Merck's dividend yield, which measures dividends as a percentage of the current stock price, enhances its appeal for those seeking steady income.
In the fourth quarter of 2024, Merck reported strong financial results. The company achieved an adjusted earnings per share (EPS) of $1.72, surpassing the Zacks Consensus Estimate of $1.69. This marked a significant improvement from the previous year's adjusted EPS of 3 cents, which was affected by a one-time charge related to a collaboration with Daiichi Sankyo. Merck's revenues increased by 7% year over year, reaching $15.62 billion, exceeding the Zacks Consensus Estimate of $15.56 billion.
Keytruda, Merck's flagship product, played a crucial role in the company's success. It generated $7.84 billion in sales during the quarter, reflecting a 21% increase. The drug's sales were driven by its rapid adoption in earlier-stage indications for triple-negative breast cancer and renal cell carcinoma. Despite these positive results, Merck's stock faced a decline due to a weak sales forecast for 2025, impacted by the temporary halt of Gardasil vaccine shipments to China.
Currently, Merck's stock is priced at $89.67, experiencing a decrease of approximately 1.18% today, with a change of $1.07. The day's trading has seen a low of $87.995 and a high of $90.74. Over the past year, the stock reached a high of $134.63 and a low of $87.995. Merck & Co., Inc. has a market capitalization of approximately $226.83 billion, with a trading volume of 18,919,515 shares.
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