Why Merck Is Poised to Pop

Updated
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 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

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.

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The article Why Merck Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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