Should I Buy MRK Stock in 2026?

Data-driven analysis and honest assessment for Merck & Co Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $123.82P/E: 16.4

Decision Score

5.3/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)7/10

Reasonable P/E of 16.4

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)8/10

Strong FCF yield of 6.8%

Insider Activity (10%)5/10

Balanced insider activity

Key Investment Metrics

Current Price

$123.82

P/E Ratio

16.39

Revenue Growth

0.1%

Profit Margin

0.3%

Market Cap

$298.0B

Dividend Yield

0.03%

How MRK Compares to Competitors

Understanding how MRK stacks up against peers helps inform your investment decision.

How MRK Compares to Peers

Upcoming Events for MRK

+5 Reasons TO Buy MRK

1. High gross margins of 77%

strong

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

2. High free cash flow yield of 6.8%

moderate

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

3. Large-cap stability and market leadership

moderate

With market cap over $100B, this company has established leadership and resources to weather cycles.

-5 Reasons NOT to Buy MRK

1. Thin profit margins of 0.3%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. High PEG ratio of 2.8

medium risk

PEG above 2 suggests expensive relative to growth rate.

3. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy MRK?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 16.4 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Income-Focused Retirees

    Low 0.0% yield

Consider These Alternatives

If you're interested in MRK, compare these Health Care peers:

Pro tip: Compare MRK directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for MRK

Frequently Asked Questions

What is MRK stock price today?

MRK (Merck & Co Inc) stock is trading at $123.82 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is MRK stock going up or down today?

MRK stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy MRK stock now?

The decision to buy MRK depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is MRK a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for MRK based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is MRK stock overvalued or undervalued?

MRK currently trades at a P/E ratio of 16.39 relative to earnings. Our DCF calculator provides intrinsic value estimates to help determine if MRK is fairly priced.

What is MRK's P/E ratio?

MRK has a price-to-earnings (P/E) ratio of 16.39, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is MRK's market cap?

MRK (Merck & Co Inc) has a market capitalization of $297.99 billion, making it a large-cap stock.

What is MRK's price to book ratio?

MRK trades at a price-to-book (P/B) ratio of 5.71, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

Similar Investment Decisions

Explore investment analyses for stocks similar to Merck & Co Inc

Explore Categories

Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.