Do You Believe in Merck & Co.'s (MRK) Upside Potential?

Antipodes Partners recently published its “Antipodes Global Value Strategy” third-quarter 2025 investor letter, highlighting the key performance stocks, portfolio changes, and the market outlook. A copy of the letter can be downloaded here. In the quarter, global equities rose positively, supported by easing trade tensions, excitement around AI, and expectations of rate cuts by the Federal Reserve. Global equities gained +7.6% in USD and +6.4% in AUD, driven by central bank interest rate reductions, new US trade agreements, and strong corporate earnings. The Antipodes Global Value Strategy outperformed the benchmark during this quarter and showed even greater outperformance for the year to date and the 12 months ending September 30, 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Antipodes Global Value Strategy highlighted stocks such as Merck & Co., Inc. (NYSE:MRK). Headquartered in Rahway, New Jersey, Merck & Co., Inc. (NYSE:MRK) is a leading healthcare company. The one-month return of Merck & Co., Inc. (NYSE:MRK) was 9.60%, and its shares lost 3.51% of their value over the last 52 weeks. On November 13, 2025, Merck & Co., Inc. (NYSE:MRK) stock closed at $92.93 per share, with a market capitalization of $230.654 billion.

Antipodes Global Value Strategy stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its third quarter 2025 investor letter:

"Within healthcare, we increased exposure via Merck & Co., Inc. (NYSE:MRK), as the market remains fixated on the company’s ability to offset Keytruda’s patent cliff from late 2028. Our view remains that the company’s growing pipeline should start delivering results over the next two years which will address the patent cliff as well drive valuation upside."

Merck & Co., Inc. (NYSE:MRK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 92 hedge fund portfolios held Merck & Co., Inc. (NYSE:MRK) at the end of the second quarter, compared to 93 in the previous quarter. In Q3 2025, Merck & Co., Inc. (NYSE:MRK) reported revenues of $17.3 billion, marking an increase of 4% from Q3 2024. While we acknowledge the potential of Merck & Co., Inc. (NYSE:MRK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Merck & Co., Inc. (NYSE:MRK) and shared the list of best long-term stocks to buy according to D. E. Shaw. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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