Why Merck Is Poised to Pop

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug behemoth Merck (NYSE: MRK  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Merck and see what CAPS investors are saying about the stock right now.

Merck facts

Headquarters (founded)

Whitehouse Station, N.J. (1891)

Market Cap

$146.6 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$46.2 billion

Management

Chairman/CEO Kenneth Frazier
CFO Peter Kellogg

Return on Equity (average, past 3 years)

8.7%

Cash / Debt

$16.0 billion / $20.8 billion

Dividend Yield

3.5%

Competitors

GlaxoSmithKline
Novartis
Pfizer

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 2,928 members who have rated Merck believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star joryko, succinctly summed up the Merck bull case for our community:

Long-term outperform for a steady Eddie in a strong industry.

-Incredibly strong drug pipeline
-3.6% [dividend yield]
-Broad demographic shift toward more demand for their goods
-Somewhat expensive, but justified, as it is a great defensive selection

5+ year outperform as Merck looks to reinvigorate its sales with 6 quality drugs in its pipeline.

Still in the dark about how Obamacare might affect you and your portfolio? Don't worry -- you're not alone. To help prepare investors for the massive changes coming to the American health care system, The Motley Fool created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" and discover how the law may impact your taxes, health insurance, and investments. Click here for your free copy today.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2537147, ~/Articles/ArticleHandler.aspx, 4/23/2014 8:56:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement