Merck Shares: Healthy Yield With Upside

Merck (MRK) shares have dropped significantly in the past couple weeks and I think now is a good time to start accumulating these shares. Today, shares are trading at $32.69, down from a 52 week high of about $39. Shares dropped when guidance disappointed some investors during the conference call. I think the drop is overdone as MRK is still estimated to earn about $3.72 per share for 2011 and almost $4 in 2012. The markets have had a great run with many investors chasing higher risk stocks. Drug stocks like Merck are seen as more defensive and less exciting when markets are running hot, but they tend to perform much better than high risk stocks do when markets correct. In the past few quarters, the markets have tended to rise into earnings season and correct shortly thereafter when strong earnings take a backseat to geopolitical, economic and other headline... Read more

Older articles featuring MRK: