What changed
$MRK — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $16.3B | EPS $-1.28 vs $-1.47 🟢
💡 Consensus modeled a deep EPS loss (-$1.47), but actual came in at -$1.28, and management raised FY revenue guidance midpoint. The market has not fully priced in upward estimate revisions nor the long-term value of the TERN-701 deal, which expands an already strong oncology pipeline.
📉 Reward/risk: 2.0:1
🏢 Business Quality: 8/10 - Leading global pharma with dominant oncology franchise (Keytruda), diversified portfolio, and a strong late-stage pipeline; recent acquisition adds a novel allosteric BCR-ABL inhibitor for CML.
📊 Valuation: fair - trading at 33.4x forward adjusted P/E, at the 50th percentile of its own recent range; P/S of 4.3x on FY26 guidance.
🔮 Catalyst: Close of TERN-701 acquisition (May 2026); Q2 FY26 earnings (expected late July 2026)
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/MRK0620