MRK · NYSE · STOCK
Merck & Co. (MRK) Stock Analysis
$145.57
52W $82.01 – $156.92
50/100
$359.61B
115.6
0.22
Is MRK Bullish or Bearish?
Mixed.
Innellis AI committee rates Merck & Co. (MRK) Watch with a composite score of 50/100
, based on 5 analysts with 60% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +10.02 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -9.98 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Value Analyst remains cautious — p/e of 111.0 is expensive by classic value standards. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Dividend yield of 2.9% pays you to wait — Value
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
- P/E of 111.0 is expensive by classic value standards — Value
- Price-to-book of 5.0x prices in significant intangible value — Value
- EPS declining -80.7% YoY despite any revenue growth — Growth
- MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
50/100
Agreement
60%
Analysts
5
Conviction
Contested
Sector Rank
Top 95%
of 192 Healthcare peers
Value Analyst
bearish
25
/ 100 · Moderate confidence
Multiples don't clear a genuine value bar here, or cheapness looks justified by weak fundamentals
+ Dividend yield of 2.9% pays you to wait
− P/E of 111.0 is expensive by classic value standards
Growth Analyst
neutral
56
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ 5 consecutive earnings beats -- consistent execution
− EPS declining -80.7% YoY despite any revenue growth
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
55
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 50.9 to 50.0.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- News Analyst: score 60->55 (-4).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
53.5
Neutral
MACD Histogram
-0.688
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$112.75
Resistance
$156.90
Bollinger %B
0.48
Inside Bands
Price vs Moving Averages
EMA 9
$144.13
Above
EMA 21
$145.06
Above
EMA 50
$142.16
Above
EMA 200
$125.06
Above
Fundamental Analysis
Valuation
33
Growth
65
Profitability
81
Financial Health
52
Cash Flow
70
Valuation
P/E Ratio
115.6×
P/B Ratio
8.58×
PEG Ratio
-1.43
Dividend Yield
2.34%
52W High
$156.92
52W Low
$82.01
Quality & Growth
ROE
3469.9%
ROA
1333.7%
Gross Margin
7537.6%
Operating Margin
1665.1%
Revenue Growth YoY
—
Debt / Equity
1.29
AI Fundamental Assessment
P/E ratio of 115.6 (rich relative to a 15-40x range); Price-to-book of 8.6x; PEG ratio of -1.4 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 34.7%; Return on assets of 13.3%; Net margin of 4.8%; Gross margin of 75.4%; Current ratio of 1.32 (tight short-term liquidity); Debt-to-equity of 1.29; Free cash flow per share is positive (6.50); Most recent quarter beat estimates by 52.3%; 5 consecutive earnings beats; EPS growth accelerating (-161.2% -> +89.8% QoQ); Average YoY EPS growth of -105.9%; Analyst estimates falling over recent quarters
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