Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health. The Pharmaceutical segment offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes under the Keytruda, Bridion, Adempas, Lagevrio, Belsomra, Simponi, and Januvia brands, as well as vaccine products consisting of preventive pediatric, adolescent, and adult vaccines under the Gardasil/Gardasil 9, ProQuad, M-M-R II, Varivax, RotaTeq, Live Oral, Vaxneuvance, Pneumovax 23, and Vaqta names. The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, and health management solutions and services, as well as digitally connected identification, traceability, and monitoring products. The company serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions; and physicians, wholesalers, government entities, veterinarians, distributors, animal producers, farmers, and pet owners. It has development and commercialization agreement for three of Daiichi Sankyo's deruxtecan ADC candidates, which include patritumab deruxtecan, ifinatamab deruxtecan, and raludotatug deruxtecan for the treatment of multiple solid tumors both as monotherapy and/or in combination with other treatments; and AstraZeneca PLC to co-development and co-commercialize AstraZeneca's Lynparza products for multiple cancer types, and Koselugo for multiple indications. The company also has a collaboration agreement with Eisai Co., Ltd., Bayer AG, and Ridgeback Biotherapeutics LP, as well Moderna, Inc. Merck & Co., Inc. was founded in 1891 and is headquartered in Rahway, New Jersey.

Merck выглядит как компания с очень сильной операционной рентабельностью, но с неоднозначной оценкой и признаками краткосрочного давления на прибыль. P/E на уровне 15.0 заметно ниже медианы отрасли, что поддерживает идею умеренной недооценки по прибыли, однако P/B 5.23 и P/S 4.21 выглядят существенно выше отраслевых ориентиров и ограничивают потенциал переоценки. P/FCF около медианы говорит, что свободный денежный поток уже близок к справедливой оценке, а не к явной скидке. Рентабельность у компании очень сильная: ROE 48.88, ROA 20.16 и ROI 28.43 значительно выше отрасли, а маржа операционной прибыли 34.01 и чистая маржа 28.08 подтверждают высокое качество бизнеса. При этом динамика маржинальности в целом хорошая, но не без колебаний: gross margin остаётся высокой, хотя ниже недавних пиков, а прибыльность по годам выглядит сильной, но не линейно растущей. Баланс умеренно напряжённый: debt/equity 0.77 выше отраслевой медианы, long-term debt вырос до 39.97 млрд, а current ratio 1.66 и quick ratio 1.44 указывают на приемлемую, но не комфортную ликвидность. Денежная позиция улучшилась до 18.21 млрд, что частично компенсирует долговую нагрузку и поддерживает финансовую гибкость. Выручка и EBITDA остаются крупными и в целом устойчивыми, но TTM EPS отрицательный, а прогнозный EPS тоже отрицательный, что является главным сдерживающим фактором для целевой оценки. Это особенно важно, потому что рынок обычно хуже реагирует на временный провал прибыли, даже если маржа и рентабельность по активам остаются высокими. Дивидендная доходность 0.74% для здравоохранения выглядит скорее скромной и не даёт сильного защитного эффекта для переоценки. В сумме фундаментал остаётся качественным, но сочетание дорогих мультипликаторов по балансу и выручке, роста долга и слабого EPS оправдывает лишь небольшую консервативную понижающую корректировку к целевому прогнозу.

Merck & Company, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Слабый индекс, незначительно вырос

У Merck сильная рентабельность и низкий P/E, но дорогие P/B и P/S, рост долга и отрицательный EPS ограничивают апсайд и требуют осторожности.

Biogen BIIB announced that it has entered into a definitive agreement to acquire San Diego-based privately held biotech RayThera Inc. for up to $1 billion. The deal includes an undisclosed upfront payment to RayThera's shareholders and additional payments tied to the achievement of certain clinical and regulatory milestones.
The transaction is expected to be closed in the third quarter of 2026, subject to customary closing conditions.
Biogen's proposed acquisition of RayThera will add several anti-inflammatory candidates to its pipeline, including a lead asset that is expected to enter phase I development in early third quarter 2026. These candidates are being developed as potential treatments for immune-mediated diseases across multiple indications.
BIIB’s Price Performance
Year to date, shares of Biogen have rallied 12.9% against the industry’s decline of 0.9%.
Image Source: Zacks Investment Research
BIIB’s Recent Acquisition Deal
The acquisition of RayThera is expected to strengthen BIIB’s immunology pipeline by adding a portfolio of anti-inflammatory candidates.
The latest deal comes on the heels of Biogen’s recent acquisition of Apellis, which added two differentiated commercialized immunology medicines, Empaveli (pegcetacoplan) and Syfovre (pegcetacoplan injection), to its commercial portfolio.
Such acquisitions highlight the continued interest among large drugmakers in bolstering their pipelines through targeted acquisitions of promising clinical-stage biotechnology companies.
Biotech, Pharma on a M&A Spree
The biotech and pharma sector is seeing strong merger and acquisition (M&A) activity in 2026, with deals accelerating in recent times.
The recent surge in dealmaking underscores the industry’s broader focus on portfolio expansion and continuous pipeline innovation, alongside a growing emphasis on AI-driven drug discovery. Oncology and immuno-oncology companies have always been at the top of acquisition targets.
So far in 2026, Eli Lilly LLY has announced six proposed acquisitions — Centessa Pharmaceuticals, Ajax Therapeutics, Kelonia Therapeutics, Orna Therapeutics, CrossBridge Bio and Ventyx Biosciences — to diversify beyond its GLP-1 franchise and strengthen its pipeline in oncology, neuroscience, RNA and cell therapies.
LLY also agreed to acquire three private vaccine developers in May 2026, adding programs targeting shingles, bacterial infections and Epstein-Barr virus. The company also announced several M&A deals in 2025.
Earlier this month, GSK plc GSK announced that it will acquire clinical-stage biopharmaceutical company Nuvalent for $10.6 billion, gaining three lung cancer assets, including late-stage ROS1 inhibitor zidesamtinib and ALK inhibitor neladalkib, both under FDA review.
The deal strengthens GSK’s oncology pipeline, expands its presence in lung cancer, and is expected to contribute to sales and operating profit growth beginning in 2027.
GSK earlier acquired RAPT Therapeutics to strengthen its immunology pipeline. The company also bought 35Pharma, adding HS235, a potential best-in-class therapy for pulmonary hypertension.
Merck MRK recently completed the acquisition of California-based cancer biotech, Terns Pharmaceuticals. The acquisition added TERN-701, an investigational oral allosteric BCR::ABL1 tyrosine kinase inhibitor, to Merck’s hematology/cancer pipeline.
Merck acquired Verona Pharma in 2025 and Cidara Therapeutics in early 2026, which likely strengthened its respiratory and infectious disease portfolios.
Several large pharmaceutical companies, including Novartis, Gilead Sciences and Johnson & Johnson, have been actively pursuing targeted acquisitions of clinical-stage biotech firms to strengthen their pipelines and drive long-term growth.
BIIB’s Zacks Rank
Biogen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Biogen Inc. (BIIB) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Biogen to Strengthen Immunology Pipeline With $1B RayThera Buyout

GSK plc GSK and its Cambridge-based partner, Spero Therapeutics SPRO, announced that the FDA has approved tebipenem pivoxil for the treatment of complicated urinary tract infections (cUTIs). GSK will market the drug under the brand name Utebzi as the first and only oral carbapenem antibiotic for the treatment of cUTIs including pyelonephritis, in adult patients who have limited or no alternative oral treatment options. Utebzi is expected to be commercially available in the United States by the end of the year.
With Utebzi's approval, GSK further strengthens its anti-infectives portfolio, which already includes Blujepa, a first-in-class oral antibiotic approved in 2025 for the treatment of uncomplicated UTIs in women and adolescent girls aged 12 years and older. Together, these therapies expand GSK's presence across uncomplicated and complicated UTI treatment settings.
Year to date, GSK’s shares have risen 6.4% against the industry’s 1.5% decline.
Image Source: Zacks Investment Research
FDA Approves GSK’s Utebzi Based on Phase III Study
The FDA approval of Utebzi was supported by positive data from the phase III PIVOT-PO study, which demonstrated that oral Utebzi was non-inferior to intravenous imipenem-cilastatin in treating hospitalized patients with cUTIs, including pyelonephritis. At the test-of-cure visit, Utebzi achieved an overall success rate of 58.5% compared with 60.2% for imipenem-cilastatin.
cUTIs are serious urinary tract infections associated with a higher risk of complications and poorer outcomes. They commonly occur in patients with underlying conditions such as urinary tract abnormalities, kidney stones, diabetes, immune deficiencies, urinary catheters or a history of kidney transplantation. cUTIs affect more than 3 million people in the United States each year, with treatment failure occurring in up to one-third of patients.
Until now, carbapenems, the standard treatment for severe, resistant infections, were available only in intravenous form, such as Merck & Co’s MRK Primaxin IV and Invanz, and Pfizer’s PFE Merrem. However, Utebzi offers a convenient oral alternative that could reduce hospital dependence while improving patient care.
GSK-Spero Collaboration on Utebzi
GSK developed Utebzi in collaboration with Spero Therapeutics for the treatment of cUTIs, including pyelonephritis. The company secured exclusive rights to develop and commercialize the drug worldwide, excluding certain Asian territories, in 2022. While Spero Therapeutics continued to manage selected development activities, including the phase III PIVOT-PO study, GSK assumed responsibility for the drug’s regulatory submission and commercialization. The FDA previously granted Qualified Infectious Disease Product and Fast Track designations to Utebzi.
GSK’s Zacks Rank
GSK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

GSK's Utebzi Wins FDA Nod for Complicated Urinary Tract Infections

For Immediate Release
Chicago, IL – June 17, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Gilead Sciences, Inc. GILD, Merck MRK and GSK plc GSK.
Here are highlights from Tuesday’s Analyst Blog:
FDA Accepts Gilead's Filing for Weekly Oral HIV Prevention
Gilead Sciences, Inc. announced that the FDA has accepted its supplemental new drug application (sNDA) for Yeztugo (lenacapavir) 300-mg tablets as a potential once-weekly oral pre-exposure prophylaxis (PrEP) option for HIV prevention.
The FDA has set a target action date of Feb. 2, 2027.
We note that Yeztugo (lenacapavir) twice-yearly injection is already approved in the United States for PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents who are at risk for HIV-1 acquisition.
Gilead’s shares have gained 1.3% year to date against the industry's decline of 1.3%.
More on GILD’s Once Weekly Yeztugo
The submission is supported by data from the PURPOSE 1 and PURPOSE 2 studies, which demonstrated strong efficacy of lenacapavir for HIV prevention across diverse populations, including cisgender women, cisgender men and gender-diverse individuals.
Oral lenacapavir tablets are already part of the approved Yeztugo regimen as a loading dose and as temporary bridge therapy when the twice-yearly injectable schedule is delayed.
GILD is seeking to build on lenacapavir’s established clinical profile by expanding its long-acting HIV prevention portfolio with new formulations.
The company aims to increase access to PrEP by offering prevention options tailored to diverse patient preferences and needs. If approved, once-weekly oral Yeztugo would provide an additional, convenient PrEP alternative, reflecting the view that HIV prevention requires a range of individualized approaches.
GILD’s Efforts to Diversify Portfolio
Gilead maintains a leading position in the HIV market, anchored by its flagship products, Biktarvy for HIV treatment and Descovy for HIV prevention. Biktarvy is a once-daily, single-tablet regimen that combines bictegravir, a potent integrase strand transfer inhibitor (INSTI), with the Descovy backbone of emtricitabine and tenofovir alafenamide.
The approval of Yeztugo in 2025 has further strengthened Gilead’s HIV portfolio. Unlike traditional daily oral PrEP medications, Yeztugo is administered just twice a year, offering a more convenient prevention option for many patients.
Driven by strong first-quarter sales and favorable market uptake, Gilead recently increased its 2026 sales forecast for Yeztugo to $1 billion, putting the drug on track to attain blockbuster status in its first full year following its launch.
The company’s HIV business also benefits from a lengthy exclusivity runway, with no major patent expirations expected before 2036. Combined with plans to introduce as many as seven new HIV therapies by 2033, Gilead appears well positioned to sustain long-term growth in its core HIV franchise.
GILD has also collaborated with Merck to advance its HIV pipeline further.
Gilead and Merck recently reported positive results from the phase III ISLEND-1 and ISLEND-2 studies evaluating an investigational once-weekly oral single-tablet regimen combining islatravir and lenacapavir for HIV treatment.
The regimen pairs Merck’s islatravir, a next-generation nucleoside analog that suppresses HIV replication through multiple mechanisms, including reverse transcriptase translocation inhibition, with Gilead’s long-acting capsid inhibitor lenacapavir.
Both trials achieved their primary efficacy endpoint at week 48, supporting the potential of a convenient once-weekly treatment option. Following these results, the partners plan to submit the ISLEND data to global regulatory agencies and present detailed findings at an upcoming scientific meeting.
Beyond the Merck partnership, Gilead continues to advance its wholly owned HIV pipeline. Earlier this year, the company reported promising phase I results for GS-3242, a long-acting integrase inhibitor. Additional data expected later in 2026 could pave the way for a twice-yearly injectable regimen combining GS-3242 with lenacapavir, further strengthening Gilead’s HIV portfolio.
Approval of additional better treatments should bolster GILD’s HIV franchise in the wake of increasing competition from the likes of GSK plc.
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato. The solid growth from these drugs has helped GSK combat the decline in Triumeq sales.
GILD’s Zacks Rank
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Gilead Sciences, Merck and GSK

Gilead Sciences, Inc. GILD announced that the FDA has accepted its supplemental new drug application (sNDA) for Yeztugo (lenacapavir) 300-mg tablets as a potential once-weekly oral pre-exposure prophylaxis (PrEP) option for HIV prevention.
The FDA has set a target action date of Feb. 2, 2027.
We note that Yeztugo (lenacapavir) twice-yearly injection is already approved in the United States for PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents who are at risk for HIV-1 acquisition.
Gilead’s shares have gained 1.3% year to date against the industry's decline of 1.3%.
Image Source: Zacks Investment Research
More on GILD’s Once Weekly Yeztugo
The submission is supported by data from the PURPOSE 1 and PURPOSE 2 studies, which demonstrated strong efficacy of lenacapavir for HIV prevention across diverse populations, including cisgender women, cisgender men and gender-diverse individuals.
Oral lenacapavir tablets are already part of the approved Yeztugo regimen as a loading dose and as temporary bridge therapy when the twice-yearly injectable schedule is delayed.
GILD is seeking to build on lenacapavir’s established clinical profile by expanding its long-acting HIV prevention portfolio with new formulations.
The company aims to increase access to PrEP by offering prevention options tailored to diverse patient preferences and needs. If approved, once-weekly oral Yeztugo would provide an additional, convenient PrEP alternative, reflecting the view that HIV prevention requires a range of individualized approaches.
GILD’s Efforts to Diversify Portfolio
Gilead maintains a leading position in the HIV market, anchored by its flagship products, Biktarvy for HIV treatment and Descovy for HIV prevention. Biktarvy is a once-daily, single-tablet regimen that combines bictegravir, a potent integrase strand transfer inhibitor (INSTI), with the Descovy backbone of emtricitabine and tenofovir alafenamide.
The approval of Yeztugo in 2025 has further strengthened Gilead’s HIV portfolio. Unlike traditional daily oral PrEP medications, Yeztugo is administered just twice a year, offering a more convenient prevention option for many patients.
Driven by strong first-quarter sales and favorable market uptake, Gilead recently increased its 2026 sales forecast for Yeztugo to $1 billion, putting the drug on track to attain blockbuster status in its first full year following its launch.
The company’s HIV business also benefits from a lengthy exclusivity runway, with no major patent expirations expected before 2036. Combined with plans to introduce as many as seven new HIV therapies by 2033, Gilead appears well positioned to sustain long-term growth in its core HIV franchise.
GILD has also collaborated with Merck MRK to advance its HIV pipeline further.
Gilead and Merck recently reported positive results from the phase III ISLEND-1 and ISLEND-2 studies evaluating an investigational once-weekly oral single-tablet regimen combining islatravir and lenacapavir for HIV treatment.
The regimen pairs Merck’s islatravir, a next-generation nucleoside analog that suppresses HIV replication through multiple mechanisms, including reverse transcriptase translocation inhibition, with Gilead’s long-acting capsid inhibitor lenacapavir.
Both trials achieved their primary efficacy endpoint at week 48, supporting the potential of a convenient once-weekly treatment option. Following these results, the partners plan to submit the ISLEND data to global regulatory agencies and present detailed findings at an upcoming scientific meeting.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Beyond the Merck partnership, Gilead continues to advance its wholly owned HIV pipeline. Earlier this year, the company reported promising phase I results for GS-3242, a long-acting integrase inhibitor. Additional data expected later in 2026 could pave the way for a twice-yearly injectable regimen combining GS-3242 with lenacapavir, further strengthening Gilead’s HIV portfolio.
Approval of additional better treatments should bolster GILD’s HIV franchise in the wake of increasing competition from the likes of GSK plc GSK.
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato. The solid growth from these drugs has helped GSK combat the decline in Triumeq sales.
GILD’s Zacks Rank
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FDA Accepts Gilead's Filing for Weekly Oral Yeztugo for HIV Prevention

A study of analyst recommendations at the major brokerages shows that Merck & Co Inc (Symbol: MRK) is the #7 broker pick, on average, out of the 30 stocks making up the Dow Jones Industrial Average, according to ETF Channel. Merck & Co Inc also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #102 spot out of 500.
Below is a chart of rank over time:
MRK is currently trading down about 0.7% midday Tuesday.
Further MRK Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broker Darlings of the Dow: Merck Ranks As a Top 15 Analyst Pick

AstraZeneca AZN stock has declined 7.4% in the past three months despite reporting strong first-quarter 2026 results. A key driver of the decline was a pipeline setback. In April, an FDA advisory committee voted against recommending AstraZeneca’s breast cancer drug candidate camizestrant. Subsequently, in May, the FDA announced it would delay its decision on the camizestrant NDA, adding further uncertainty around the program.
However, one-off pipeline setbacks like these should not form the basis of an investment decision. Let’s understand AZN’s strengths and weaknesses to better analyze how to play the stock amid the latest price decline.
AZN’s Strong Portfolio of Blockbuster Drugs
AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medicines.
The company now has 16 blockbuster medicines, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza (partnered with Merck [MRK]), Soliris and Ultomiris in its portfolio, with sales (product sales and alliance revenues) exceeding $1 billion. These drugs drove AstraZeneca’s 8% top-line growth and 5% core EPS at CER in the first quarter of 2026, backed by increasing demand trends. Almost every new product that has been launched in recent years has done well.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap also contributed to top-line growth. A key new drug, Baxfendy (baxdrostat), was approved for treatment-resistant hypertension in the United States in May 2026.
AZN Enjoys Strong Position in the Oncology Space
Oncology is AstraZeneca’s biggest segment. The segment contributes roughly 44% of total product sales and continues to be the company’s primary growth driver.
AstraZeneca’s oncology sales were $6.8 billion in the first quarter of 2026, up 16% at constant exchange rate (CER). The strong oncology performance was driven by robust demand for drugs like Tagrisso, MRK-partnered Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Key new cancer drugs in AstraZeneca’s portfolio are Truqap for HR-positive, HER2-negative (HR+ HER2-) breast cancer, and Datroway, co-developed with partner Daiichi, also for HR+ HER2- breast cancer and EGFR-mutant non-small cell lung cancer (NSCLC). These drugs are also contributing to sales growth. Truqap has seen rapid uptake in the U.S. market since launch, with the ex-U.S. market expected to be a key contributor in future quarters. Datroway is seeing strong launch uptake trends.
AstraZeneca is working to strengthen its oncology product portfolio through label expansions of existing products and to advance its oncology pipeline candidates. AstraZeneca also possesses one of the deepest late-stage oncology pipelines in the industry. A key pipeline candidate, camizestrant, an oral SERD, is under review in the United States, the EU and some other countries for HR+ HER2- metastatic breast cancer.
Several Headwinds Hurting AZN’s Top Line
AstraZeneca faces its share of challenges. The loss of exclusivity of mature brands like Brilinta, Pulmicort and Soliris is hurting sales. Generic versions of one of the company's major drug, Farxiga, have been launched in the United Kingdom and some emerging markets. Farxiga lost exclusivity in the United States in April 2026 and its revenues are expected to decline in the United States, Japan and China in 2026.
China, though an important market for AstraZeneca, remains a somewhat uncertain market due to pricing pressure from volume-based procurement (VBP) programs and ongoing legal and compliance investigations involving the company’s former China head, Leon Wang. VBP-associated stock compensation costs hurt sales of Farxiga, Lynparza and roxadustat in China in the first quarter.
AZN Stock’s Price, Valuation & Estimates
AstraZeneca’s stock has declined 3.6% so far this year against an increase of 5.4% for the industry.
AZN Stock Underperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, AstraZeneca is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 17.89 forward earnings, slightly higher than 17.80 for the industry. AZN’s stock is also trading above its 5-year mean of 17.49. The stock is, however, cheaper than other large drugmakers like Eli Lilly LLY and J&J JNJ.
AZN Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has declined from $10.29 per share to $9.39 per share over the past 60 days. For 2027, earnings estimates have declined from $11.53 per share to $10.52 per share over the same timeframe.
AZN Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in AZN Stock
AstraZeneca’s stock has declined this year, accompanied by downward revisions to earnings estimates. Despite the pullback, the shares still trade at a relatively rich valuation. In addition, several of the company’s established medicines are facing patent expirations and pricing pressures, creating uncertainty about whether revenues from these mature products can be replaced quickly enough by newer launches and pipeline candidates.
However, despite the headwinds, AZN expects continued revenue and earnings growth in 2026. It expects total revenues to grow by a mid-to-high single-digit percentage at CER in 2026, while core EPS is expected to increase by a low double-digit percentage at CER.
The company has also set itself some visible targets for the next few years. It expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with around half of these already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca’s pipeline is also strong, with pivotal data readouts lined up for 2026.
Considering AZN’s growth prospects, one should stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AstraZeneca Stock Down 7% in 3 Months: Should You Buy, Sell or Hold?

Key Points
These three healthcare leaders are slowly overcoming recent obstacles.
They have strong dividend track records and the means to maintain healthy dividend growth.
Investing in dividend stocks is a great way to earn superior returns over the long run. How do we know that? According to some research, most of the S&P 500's returns over the past several decades can be attributed to reinvested dividends and compounding. This fact makes a strong case for dividend investing. However, buying shares in just any old company that happens to pay dividends isn't the way to go: They aren't all created equal. With that said, let's consider three excellent dividend stocks that are worth investors' hard-earned cash: Bristol Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and Medtronic (NYSE: MDT). Here's why these three income stocks are worth sticking with for the long term.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Bristol Myers Squibb
Bristol Myers is a leading pharmaceutical company with a deep portfolio of medicines spanning many therapeutic areas, particularly oncology. The drugmaker typically generates decent revenue and earnings, although it has encountered challenges in recent years due to patent cliffs. Bristol Myers is bouncing back, though. Newer approvals are helping push sales in the right direction. The company's first-quarter revenue climbed by 3% year over year to $11.5 billion.
Bristol Myers' growth portfolio -- composed of newer medicines that won't encounter patent cliffs anytime soon -- posted even stronger growth. Its sales were $6.2 billion, 12% higher than the year-ago period. These newer medicines should account for a larger percentage of Bristol Myers' top line within a few years and lift sales growth even higher. And while there are other patent cliffs on the horizon -- particularly that of Bristol Myers' anticoagulant, Eliquis -- the drugmaker has a deep pipeline of promising candidates that should help it overcome them.
In fact, one of Bristol Myers' most exciting pipeline assets is a potential successor to Eliquis called milvexian. Bristol Myers thinks this medicine has multibillion-dollar potential, partly because it could avoid one key drawback of traditional anticoagulants: Bleeding risk. Bristol Myers has plenty of other candidates beyond this one. Over the long run, it should succeed in developing newer and better products while growing its sales and earnings at a decent clip.
Lastly, Bristol Myers has an attractive dividend program, with a forward yield of 4.4%. It has increased its payouts by 65.8% over the past decade. All good reasons why Bristol Myers is an attractive blue chip dividend stock to buy and hold for a long time.
2. Merck
Merck has also faced challenges in recent years, particularly with one of its growth franchises -- HPV vaccines Gardasil and Gardasil 9 -- whose sales haven't been strong due to weak demand in some Asian regions. Many investors also fear that other drugmakers are coming to take Merck's crown in the cancer drug market. The company reigns supreme thanks to Keytruda, the world's best-selling cancer medicine, but several "Keytruda killers" are in development and could hit the market within a few years.
At any rate, Keytruda itself will lose patent exclusivity by the end of the decade. Is Merck still worth considering, given all these factors? My view is that it is. Here are three reasons why. First, the company has received approval for a newer, subcutaneous version of Keytruda, called Keytruda Qlex, that is much faster to administer than the original intravenous version while remaining as effective. Keytruda Qlex should extend the franchise's patent exclusivity into the next decade.
Second, while Merck will face increased competition, it has worked hard to diversify its lineup and decrease its reliance on Keytruda. Some of the company's newer products already have an annual revenue run rate of over $1 billion. Winrevair, a medicine for pulmonary arterial hypertension first approved in 2024, generated $525 million in revenue in the first quarter, up 88% year over year. Merck's Capvaxive, a pneumonia vaccine, is performing well, too.
Third, just like any self-respecting pharmaceutical giant, Merck also has a deep pipeline that should lead to brand-new approvals and label expansions. The company has expanded its pipeline in recent years through acquisitions and now boasts exciting programs, including a highly promising influenza medicine that could address an unmet need in that area. Finally, Merck offers an attractive forward dividend yield of 3%.
The drugmaker has increased its payouts by 93.8% over the past decade. Merck should continue paying -- and raising -- its dividends for a long time, making it a good pick for income seekers.
3. Medtronic
Medtronic has struggled to grow revenue at a pace satisfactory to the market in recent years. The company's profits and margins have also often disappointed. However, the medical device specialist has made significant progress in addressing its issues. Medtronic announced it would spin off its diabetes care division -- which had been a drag on operating margins -- into a stand-alone, publicly traded company.
It has also launched products that are meaningfully impacting top-line growth, and others that eventually will. Medtronic PFA (Pulse Field Ablation) franchise -- devices that use a novel technology to treat a heart problem -- has been a bright spot in recent quarters.
Further, Medtronic earned approval for the Hugo system, a robotic-assisted surgery (RAS) device, last year. It will allow the company to compete with the leader in this niche, Intuitive Surgical. The RAS market is arguably underpenetrated, and although Medtronic may not take the top spot away from Intuitive Surgical -- the latter has a two-decade lead -- it could still meaningfully contribute to top-line growth.
Meanwhile, thanks to a large product portfolio and regular approvals, Medtronic generates consistent revenue and earnings. That's how it has maintained such a strong dividend program. Medtronic has increased its payouts for an impressive 48 consecutive years. The company also offers a forward yield of 3.6%. Medtronic should continue rewarding investors with regular payout increases for a long time.
Should you buy stock in Bristol Myers Squibb right now?
Before you buy stock in Bristol Myers Squibb, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bristol Myers Squibb wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 16, 2026.
Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Bristol Myers Squibb, Intuitive Surgical, Medtronic, and Merck. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Dividend Stocks to Hold for the Long Haul

In early trading on Monday, shares of Boeing topped the list of the day's best performing Dow Jones Industrial Average components, trading up 4.0%. Year to date, Boeing registers a 4.9% gain.
And the worst performing Dow component thus far on the day is Chevron, trading down 4.5%. Chevron is showing a gain of 17.3% looking at the year to date performance.
Two other components making moves today are Merck, trading down 2.2%, and Amazon.com, trading up 3.4% on the day.
VIDEO: Dow Movers: CVX, BA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Movers: CVX, BA

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Schwab US Dividend Equity ETF (Symbol: SCHD) where we have detected an approximate $735.2 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 2,941,500,000 to 2,963,900,000). Among the largest underlying components of SCHD, in trading today Qualcomm Inc (Symbol: QCOM) is up about 4.3%, Merck & Co Inc (Symbol: MRK) is down about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 1.1%. For a complete list of holdings, visit the SCHD Holdings page » The chart below shows the one year price performance of SCHD, versus its 200 day moving average:
Looking at the chart above, SCHD's low point in its 52 week range is $26.16 per share, with $32.915 as the 52 week high point — that compares with a last trade of $32.77. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further SCHD Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SCHD, QCOM, MRK, BMY: Large Inflows Detected at ETF

Bristol Myers Squibb BMY is navigating a revenue mix shift as growth products portfolio now assumes a larger role in the business, helping mitigate the impact of declining sales from mature products facing generics.
The growth portfolio — including Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Sotyku, Krazati and Cobenfy — is becoming central to top-line resilience. Sales from this segment rose 12% in the first quarter of 2026, lifting its contribution to 54% of total revenues from 49.7% in the first quarter of 2025. This shift signals improving revenue durability and supports a more favorable long-term growth outlook.
Within this mix, Reblozyl, Breyanzi, Opdualag, Qvantig and Cobenfy propelled growth in the first quarter.
Opdivo Qvantig (nivolumab and hyaluronidase-nvhy- subcutaneous formulation) has witnessed strong uptake across all approved tumor types in the United States.
Other key drugs are contributing to revenue growth, though at varying stages of maturity.
Opdualag sales remain robust, particularly in the United States, where it continues to serve as a standard of care in first-line melanoma.
Reblozyl recorded strong sales growth, driven by continued adoption in both first-line and second-line treatment settings for patients with myelodysplastic syndrome (MDS)-associated anemia.
Breyanzi continues to deliver solid growth, driven by ongoing uptake across its approved large B-cell lymphoma indications in both the United States and international markets. The strong performance highlights sustained demand for the therapy and supports expectations for continued commercial expansion.
Camzyos continues to gain traction in the cardiovascular market, supported by growing demand and increased adoption among eligible patients.
In immunology, Sotyktu remains an important growth driver. The recent approval in psoriatic arthritis expands its commercial opportunity and strengthens BMY’s presence in rheumatology. Additional upside could come from ongoing phase III programs in systemic lupus erythematosus and Sjögren’s disease, which may further broaden the drug’s addressable market, if successful.
Newer therapies like Cobenfy also add optionality to the long-term story, with early launch traction and potential label expansions positioning it as a future growth lever.
The transition is not without challenges. The legacy portfolio — including Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane — still represents 46% of revenues and continues to face significant erosion due to loss of exclusivity for four drugs (Revlimid, Pomalyst, Sprycel and Abraxane).
BMY’s Competition in Oncology Space
Oncology is a key therapeutic area of focus for Bristol Myers, which is developing and delivering transformational medicines in this space.
The company competes with big pharma giants like Merck MRK and Pfizer PFE in this space.
The immuno-oncology space is dominated by pharma giant MRK’s blockbuster drug Keytruda (pembrolizumab).
Keytruda is approved for several types of cancer and alone accounts for around 55% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive long-term growth of Keytruda.
Pfizer is one of the largest and most successful drugmakers in the field of oncology. It has an innovative oncology product portfolio of antibody-drug conjugates (ADCs), small molecules, bispecifics and other immune-oncology biologics that treat a wide range of cancers, including breast cancer, gastrointestinal cancer, genitourinary cancer, hematology-oncology, and thoracic cancers, which includes lung cancer.
Pfizer’s position in oncology was strengthened with the addition of Seagen.
The company inked a licensing agreement with 3SBio for the development, manufacturing and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, outside China.
BMY’s Price Performance, Valuation & Estimates
Shares of Bristol Myers have gained 5.5% year to date against the industry’s decline of 3.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, BMY is trading at a discount to the large-cap pharma industry. Going by the price/earnings ratio, shares currently trade at 9.17x forward earnings, higher than its mean of 8.59x but lower than the large-cap pharma industry’s 17.67x.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 EPS has moved north to $6.32 from $6.29 in the past 60 days, while that for 2027 has moved south to $6.05 from $6.09 in the same time frame.
Image Source: Zacks Investment Research
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Merck & Company, Inc.

Sign up and unlock all the capabilities of the AI-screener