Wells Fargo Adds Merck (MRK) to Q1 2026 Tactical List Ahead of Key Catalysts

Merck & Co., Inc. (NYSE:MRK) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, Wells Fargo added Merck & Co., Inc. (NYSE:MRK) to its Q1 2026 Tactical Ideas List. Wells said Merck is moving into what it calls a catalyst-rich stretch across FY26 and 2027. The firm expects the stock to find a footing once 2026 guidance clears a near-term overhang. That could open the door for investors ahead of key events in the first half of 2026, including detailed CADENCE results and Phase 3 CD388 data. Wells has an Overweight rating on the shares and a $125 price target.

Merck & Co., Inc. (NYSE:MRK) rose nearly 8% in 2025, though the story is not without risk. The company’s flagship cancer drug, Keytruda, is set to lose US patent protection in 2028. International patents extend into the early 2030s, and a newer version of the drug carries protections into the late 2030s. Those layers help soften the longer-term impact of the patent cliff.

The company has also stayed active on the deal front. Merck recently agreed to acquire Cidara Therapeutics for about $9 billion, adding a late-stage flu treatment to its pipeline. Like peers such as Pfizer, Merck has a long track record of navigating patent cycles and emerging stronger on the other side. The dividend adds another layer of stability. With a payout ratio near 45%, the dividend looks well supported and positioned to remain reliable.

Merck & Co., Inc. (NYSE:MRK) is a global health care company focused on prescription medicines, including biologics, vaccines, and animal health products.

While we acknowledge the potential of 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.

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