Jim Cramer on Merck: "I Think You Continue to Hold It"

Merck & Co., Inc. (NYSE:MRK) is one of the stocks Jim Cramer recently gave takes on. Answering a caller’s query about the stock, Cramer said:

“Oh, they’ve got some good stuff in the, they’ve made a couple good acquisitions. The dividend seems safe. I think Rob Davis is turning the stock around. I think you continue to hold it. I don’t want to buy more because I don’t feel confident enough in the FDA, because they can throw you a curve. But I like your long-term thinking about Merck.”

Merck & Co., Inc. (NYSE:MRK) develops pharmaceuticals, vaccines, and health solutions for humans and animals under brands like Keytruda, Gardasil, Januvia, and Bravecto. The company also partners with global biopharma companies on cancer therapies, vaccines, and innovative biologics. Cramer discussed the company in a July episode and said:

“What do we make of the numbers that we got from Merck this morning? The pharma titan reported what some thought was a mixed quarter. I actually liked it. Small revenue miss, paired with an 11-cent earnings beat. Stock got hit, finishing the day down nearly 2% although it was a lot lower at one point.

Merck’s had a tough time over the past year, falling 45% from its highs in June of 2024 before recovering only modestly over the past couple weeks. Wall Street seems to be worried about that looming patent cliff for their blockbuster… best drug ever, Keytruda, which accounts for about half of the company’s sales. Doesn’t help that GARDASIL, their HPV vaccines, really struggled thanks to persistent weakness in China… While Merck’s made some excellent acquisitions to expand the drug pipeline, stock hasn’t gotten much credit for it. I think that’s wrong.”

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Disclosure: None. This article is originally published at Insider Monkey.