Merck: Now A Single-Digit P/E With Double-Digit EPS Growth, Technical Support

  • The Health Care sector outperformed the S&P 500 in 2025, with XLV returning -1.5% YTD compared to SPY's -10% decline. Despite mixed performance, Merck's stock has dropped 37% since mid-2024, but I maintain a buy rating due to long-term support and potential growth drivers. Merck's Q4 results beat expectations, but concerns over Gardasil and Keytruda's patent expirations have weighed on the stock.