MRK Should I Buy
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Given the user's beginner investment level, long-term strategy, and available funds, Merck & Co Inc (MRK) is not a strong buy at the moment. While the stock has positive catalysts such as FDA approvals and bullish technical indicators, the recent insider selling, cautious congressional trading activity, and declining financial metrics (Net Income and EPS) suggest a more cautious approach. Holding or waiting for a better entry point would be more prudent.
The technical indicators for MRK are moderately bullish. The MACD is positive and contracting, RSI is neutral at 65.628, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 121.584), suggesting limited immediate upside potential.
FDA approval of Keytruda and Keytruda Qlex for ovarian cancer, which could expand market share.
Analysts have raised price targets, with most maintaining Buy or Outperform ratings.
Gross Margin increased YoY, indicating operational efficiency.
Insider selling has increased significantly (2945.40% over the last month).
Congress members have sold MRK shares recently, indicating cautious sentiment.
Financial performance shows declining Net Income (-20.84% YoY) and EPS (-19.59% YoY), which could weigh on investor confidence.
In Q4 2025, Merck's revenue grew by 4.97% YoY to $16.4 billion, but Net Income dropped by -20.84% YoY to $2.96 billion, and EPS fell by -19.59% YoY to $1.19. Gross Margin improved to 79.73%, up 4.54% YoY, indicating better cost management.
Analysts are generally positive on MRK, with multiple price target increases (ranging from $120 to $136) and Buy/Outperform ratings from firms like BofA, Goldman Sachs, and Scotiabank. However, some analysts, like Citi and Bernstein, maintain Neutral or Market Perform ratings, citing concerns about 2026 guidance and Keytruda's loss of exclusivity.
