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Yahoo
6 hours ago
- Business
- Yahoo
1 Blue-Chip Dividend Stock That Still Has Room to Run
Merck (MRK) may be a storied pharmaceutical giant with a 134-year history, but it still has a lot of room to run. Merck is well-known for its cancer treatment Keytruda, vaccine leadership, and a growing pipeline of innovative therapies in cardiovascular, diabetes, and infectious diseases. Over the years, Merck has done what few large-cap pharma companies can: Deliver consistent earnings power combined with pipeline dynamism and capital discipline. More News from Barchart This High-Yield Dividend Stock Just Slashed Its Payout. Is It Time to Sell Now? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Despite headwinds, this pharma heavyweight delivered second-quarter results that were in line with expectations and reaffirmed its strategic roadmap. Regardless of the stock's 20% year-to-date decline, most analysts believe it is a 'Buy' with a potential 80% increase from current levels. Let's find out if the stock is indeed a buy now. Merck Has a Multi-Therapeutic Growth Engine In the second quarter, total revenue fell 2% year over year to $15.8 billion, owing primarily to a $1.3 billion decline in Gardasil sales in China. However, excluding this, underlying global sales increased by 7%, driven by strong demand for oncology, animal health, and new launches. Merck's most valuable asset is Keytruda, an immunotherapy drug that treats a variety of cancers such as melanoma, head and neck cancer, lung cancer, and breast cancer, among others. Keytruda sales increased 9% to nearly $8 billion, driven by increased use in both metastatic and early stage cancers, particularly in women. Gross margin improved to 82.2%, thanks largely to a favorable product mix. However, adjusted earnings dropped 7% to $2.13 per share. Merck has launched a multi-year optimization initiative to redirect $3 billion from its least profitable business into high-potential pipeline and commercial opportunities. Despite concerns about the long-term patent expiration of Keytruda, management stated that a new generation of products is gaining traction. The company is constantly reshaping its portfolio, reallocating resources from mature segments to support over 20 new and emerging growth drivers. The recent acquisition of Verona Pharma, which includes the novel COPD therapy Ohtuvayre, is an excellent example. This move adds to Merck's expanding cardiopulmonary portfolio. Furthermore, drugs such as Winrevair (for pulmonary arterial hypertension), Enflonsia (for RSV), Capvaxie (a new pneumococcal vaccine), and others are already scaling well. Currently, Merck has more than 80 Phase 3 clinical trials underway across oncology, cardiology, infectious disease, and immunology. These provide a glimpse into the company's future beyond Keytruda. In oncology, Merck is also preparing for the post-Keytruda era. Through a collaboration with Daiichi Sankyo, Merck is advancing ifinatamab deruxtecan, an antibody-drug conjugate, in three pivotal Phase 3 trials targeting esophageal, prostate, and small-cell lung cancers. Additionally, the company has collaborated with Moderna (MRNA) on mRNA-4157, a personalized cancer vaccine for melanoma. In vaccines, Merck is advancing its dengue vaccine candidate (V181) into Phase 3, addressing one of the fastest-growing viral threats worldwide. Additionally, Merck continues to push the boundaries in HIV prevention and treatment. The company has initiated two Phase 3 trials in collaboration with the Gates Foundation for MK-8527, a once-monthly oral HIV prevention pill. Merck is also a dividend stock, with a yield of 4.1%, which exceeds the healthcare sector average of 1.6%. With a dividend payout ratio of 33%, the company has plenty of room to grow its dividends. For the full year, management anticipates a 1% to 2% increase in revenue between $64.3 billion and $65.3 billion. Gross margin is expected to remain at a healthy 82%, with adjusted earnings per share ranging from $8.87 to $8.97. Notably, this outlook excludes the impact of Verona Pharma's pending acquisition, leaving room for potential upside in the coming quarters. Analysts covering Merck expect earnings to grow by 16.7% in 2025, followed by another 7.7% increase in 2026. Merck's shares are currently trading at nine times forward 2025 earnings, making it an attractively priced biotech company that delivers innovation, pipeline momentum, and strong cash flows. What Does Wall Street Say About Merck Stock? Overall, Merck stock holds a 'Moderate Buy' rating. Among the 24 analysts covering the stock, 12 have assigned a 'Strong Buy' rating, while one recommends a 'Moderate Buy' and 11 suggest holding. The average price target of $104.18 suggests potential upside of 33% from current levels, while the highest price estimate of $141 indicates the stock could surge by 80% over the next year. The Key Takeaway This pharmaceutical behemoth may be over a century old, but with innovation at its core and multiple shots at success in high-need disease areas, Merck still has plenty of room to expand its reach. Long-term investors seeking growth, income, and pipeline-driven upside should consider including it in their portfolios. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Zawya
2 days ago
- Business
- Zawya
US Stocks: Equities close lower as earnings weigh; Fed statement on tap
NEW YORK: U.S. stocks closed lower on Tuesday as the S&P 500 and Nasdaq retreated from record highs after some disappointing corporate earnings, while investors awaited a Federal Reserve policy statement. A host of Dow components reported earnings, with UnitedHealth, Boeing and Merck all closing lower after their quarterly results. Health insurer UnitedHealth stumbled 7.5% and was the biggest drag on the Dow after a disappointing profit forecast, while Boeing declined 4.4% despite reporting a smaller second-quarter loss. Merck dipped 1.7% after the drugmaker reported quarterly results and said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to persistent weakness in demand. "Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are." Earnings from megacaps Meta, Microsoft, Amazon and Apple are due this week and are likely to have a strong influence on market direction due to their large market weightings. The Dow Jones Industrial Average fell 204.57 points, or 0.46%, to 44,632.99, the S&P 500 lost 18.91 points, or 0.30%, to 6,370.86 and the Nasdaq Composite lost 80.29 points, or 0.38%, to 21,098.29. United Parcel Service shares plunged 10.6% as the package delivery company posted earnings and again declined to issue annual revenue and margin forecasts, deepening concerns that U.S. President Donald Trump's continually changing trade policy is weighing on the company. That helped drag down the Dow Jones Transport Average by 2.3% for its biggest daily percentage decline since May 21. Likewise, Whirlpool plummeted 13.4% after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs. Procter & Gamble shares shed 0.3%, as the maker of consumer goods such as dish soap and toilet paper forecast annual results below estimates and said it would raise prices on some products to offset the tariff impact. Nearly 200 S&P 500 components have reported earnings and are posting results 6.4% above expectations, according to LSEG data, compared with an average of 6.3% over the last four quarters. On the economic front, consumer confidence in July increased more than expected to 97.2. In June, U.S. job openings and hiring, or JOLTS data, had decreased, pointing to a further slowdown in labor market activity. The JOLTS report was the first in a string of data on the labor market this week, culminating in Friday's government payrolls report. The Fed is largely expected to leave rates unchanged at its policy announcement on Wednesday. Remarks by Fed Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts. Key negotiations between the U.S. and China completed their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict, with Trump saying he was told by Treasury Secretary Scott Bessent that the latter had a very good meeting with Chinese officials. Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 2.08-to-1 ratio on the Nasdaq. The S&P 500 posted 32 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 76 new highs and 83 new lows. Volume on U.S. exchanges was 18.01 billion shares, compared with the 17.89 billion average for the full session over the last 20 trading days. (Reporting by Chuck Mikolajczak in New York; Additional reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Matthew Lewis)
New Straits Times
2 days ago
- Business
- New Straits Times
Equities close lower as earnings weigh; Fed statement on tap
NEW YORK: US stocks closed lower on Tuesday as the S&P 500 and Nasdaq retreated from record highs after some disappointing corporate earnings, while investors awaited a Federal Reserve policy statement. A host of Dow components reported earnings, with UnitedHealth, Boeing and Merck all closing lower after their quarterly results. Health insurer UnitedHealth stumbled 7.5 per cent and was the biggest drag on the Dow after a disappointing profit forecast, while Boeing declined 4.4 per cent despite reporting a smaller second-quarter loss. Merck dipped 1.7 per cent after the drugmaker reported quarterly results and said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to persistent weakness in demand. "Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are." Earnings from megacaps Meta, Microsoft, Amazon and Apple are due this week and are likely to have a strong influence on market direction due to their large market weightings. The Dow Jones Industrial Average fell 204.57 points, or 0.46 per cent, to 44,632.99, the S&P 500 lost 18.91 points, or 0.30 per cent, to 6,370.86 and the Nasdaq Composite lost 80.29 points, or 0.38 per cent, to 21,098.29. United Parcel Service shares plunged 10.6 per cent as the package delivery company posted earnings and again declined to issue annual revenue and margin forecasts, deepening concerns that US President Donald Trump's continually changing trade policy is weighing on the company. That helped drag down the Dow Jones Transport Average by 2.3 per cent for its biggest daily percentage decline since May 21. Likewise, Whirlpool plummeted 13.4 per cent after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs. Procter & Gamble shares shed 0.3 per cent, as the maker of consumer goods such as dish soap and toilet paper forecast annual results below estimates and said it would raise prices on some products to offset the tariff impact. Nearly 200 S&P 500 components have reported earnings and are posting results 6.4 per cent above expectations, according to LSEG data, compared with an average of 6.3 per cent over the last four quarters. On the economic front, consumer confidence in July increased more than expected to 97.2. In June, US job openings and hiring, or JOLTS data, had decreased, pointing to a further slowdown in labor market activity. The JOLTS report was the first in a string of data on the labor market this week, culminating in Friday's government payrolls report. The Fed is largely expected to leave rates unchanged at its policy announcement on Wednesday. Remarks by Fed Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts. Key negotiations between the US and China completed their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict, with Trump saying he was told by Treasury Secretary Scott Bessent that the latter had a very good meeting with Chinese officials. Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 2.08-to-1 ratio on the Nasdaq. The S&P 500 posted 32 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 76 new highs and 83 new lows. Volume on US exchanges was 18.01 billion shares, compared with the 17.89 billion average for the full session over the last 20 trading days.
Yahoo
2 days ago
- Business
- Yahoo
US stocks close lower as earnings weigh; Fed statement on tap
STORY: U.S. stocks closed lower on Tuesday, with the Dow dropping nearly half a percent and the S&P 500 and Nasdaq each shedding roughly a third of a percent. A host of Dow components reported earnings, including UnitedHealth. Shares of the health insurer stumbled 7.5% and were the biggest drag on the blue-chip index after a disappointing profit forecast. Mike Mussio is president of FBB Capital Partners. "A little bit of a pullback here on some some weak earnings numbers from some fairly significant companies. UnitedHealthcare reinstated guidance, but it was below what folks were expecting, so that's weighing on the Dow for sure. And so, you know, puts and takes, it's healthy to have some red days on the screen as long as they're not too red, but to have some red days to offset some of the green days." Shares of Boeing dropped nearly 4.5% despite the planemaker reporting a smaller second-quarter loss. Merck's stock dipped more than 1.5% after its quarterly results. The drugmaker said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to weak demand. Related Videos Market sluggishness, dollar & yields, oil: Market takeaways Visa, Booking, Mondelez all beat on earnings: After-hours movers Freshworks CEO talks Q2 earnings, AI, and taking on the software giants eToro launches 24/5 trading. What will take to get to 24/7? UPS shares plunged 10.5% after the delivery giant again declined to issue annual revenue and margin forecasts, deepening concerns that President Trump's continually changing trade policy is weighing on the company. And shares of Whirlpool spiraled about 13.5% after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs. Investors now turn their attention to the conclusion of the Federal Reserve's policy meeting on Wednesday. Remarks by Chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
2 days ago
- Business
- The Star
US stocks close lower as earnings weigh
The Dow fell 204.57 points, or 0.46%, to 44,632.99, the S&P 500 lost 18.91 points, or 0.30%, to 6,370.86 and the Nasdaq lost 80.29 points, or 0.38%, to 21,098.29. NEW YORK: US stocks closed lower on Tuesday as the S&P 500 and Nasdaq retreated from record highs after some disappointing corporate earnings, while investors awaited a Federal Reserve policy statement. A host of Dow components reported earnings, with UnitedHealth, Boeing and Merck all closing lower after their quarterly results. Health insurer UnitedHealth stumbled 7.5% and was the biggest drag on the Dow after a disappointing profit forecast, while Boeing declined 4.4% despite reporting a smaller second-quarter loss. Merck dipped 1.7% after the drugmaker reported quarterly results and said it was extending its pause on shipments of HPV vaccine Gardasil to China until at least the end of 2025 due to persistent weakness in demand. "Earnings have been a bit of a mix. Economic data has been somewhat mixed too, but not enough to move the needle in terms of the Fed," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "The next two days, you have Microsoft, Meta, Apple, Amazon - those are big companies, and they will move markets depending on how the earnings are and how the outlooks are." Earnings from megacaps Meta, Microsoft, Amazon and Apple are due this week and are likely to have a strong influence on market direction due to their large market weightings. The Dow Jones Industrial Average fell 204.57 points, or 0.46%, to 44,632.99, the S&P 500 lost 18.91 points, or 0.30%, to 6,370.86 and the Nasdaq Composite lost 80.29 points, or 0.38%, to 21,098.29. United Parcel Service shares plunged 10.6% as the package delivery company posted earnings and again declined to issue annual revenue and margin forecasts, deepening concerns that US President Donald Trump's continually changing trade policy is weighing on the company. That helped drag down the Dow Jones Transport Average by 2.3% for its biggest daily percentage decline since May 21. Likewise, Whirlpool plummeted 13.4% after the home appliances maker slashed its annual earnings forecast and dividend, citing pressure from a pull-forward in imports by rivals ahead of Trump's tariffs. Procter & Gamble shares shed 0.3%, as the maker of consumer goods such as dish soap and toilet paper forecast annual results below estimates and said it would raise prices on some products to offset the tariff impact. Nearly 200 S&P 500 components have reported earnings and are posting results 6.4% above expectations, according to LSEG data, compared with an average of 6.3% over the last four quarters. On the economic front, consumer confidence in July increased more than expected to 97.2. In June, US job openings and hiring, or JOLTS data, had decreased, pointing to a further slowdown in labour market activity. The JOLTS report was the first in a string of data on the labour market this week, culminating in Friday's government payrolls report. The Fed is largely expected to leave rates unchanged at its policy announcement on Wednesday. Remarks by Fed chair Jerome Powell will be closely monitored to gauge the timing of any potential rate cuts. Key negotiations between the US and China completed their second day in Stockholm as the world's two leading economies aim to resolve their trade conflict, with Trump saying he was told by Treasury Secretary Scott Bessent that the latter had a very good meeting with Chinese officials. Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 2.08-to-1 ratio on the Nasdaq. The S&P 500 posted 32 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 76 new highs and 83 new lows. Volume on US exchanges was 18.01 billion shares, compared with the 17.89 billion average for the full session over the last 20 trading days. — Reuters
