9. Merck (MRK) is a global pharmaceutical company. It is scheduled to report fourth-quarter results today.
Merck's stock has been dragged down by pipeline woes over the past year, dropping 15%. However, its dividend yield, at 4.5%, is fourth-highest in the Dow. In addition to being historically cheap, Merck sells at a substantial discount to its peer group. The stock trades at a forward earnings multiple of 9, a book value multiple of 1.9, a sales multiple of 2.4 and a cash flow multiple of 12, 26%, 73%, 30% and 7% discounts to pharma industry averages.
12-Month Sales Growth: 88%
12-Month Profit Growth: -2.1%
12-Month Stock Performance: -15%
3-Year Annualized Sales Growth: 22%
3-Year Annualized Profit Growth: 14%
3-Year Annualized Stock Performance: -10%
3-Year Annualized Dividend Growth: 0%
5-Year Annualized Dividend Growth: 0%
Bullish Scenario: Credit Suisse rates Merck "outperform", expecting its stock to climb 30% to $44. Bearish Scenario: Jefferies ranks Merck "hold", predicting that its stock will inch up 2% to $34.50.
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