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’s valuation looks stretched in light of weak current earnings and noticeably elevated multiples. P/E of 116.25, P/B of 8.54, and P/S of 5.43 are significantly above industry medians, which usually implies an expensive valuation and limits the potential for further upside without an acceleration in earnings. At the same time, P/FCF of 22.89 no longer looks extreme, but it still does not offer a clear discount. Debt burden has increased: debt/equity of 1.22 is above the median and noticeably worse than a year ago, while long-term debt has risen to $51.1 billion. Liquidity has also weakened, as quick ratio of 1.06 and current ratio of 1.30 are below industry benchmarks and below the company’s own prior levels. The strengths remain profitability and capital quality: gross margin of around 73%, net profit margin of 13.59%, ROE of 17.91%, and return on tangible equity of 94.45% look solid for the sector. However, efficiency trends have deteriorated compared with last year, when ROE, ROA, and operating margin were noticeably higher. ROA of 2.42% and operating margin of 10.49% are especially concerning, indicating weaker returns on assets and the operating business. Revenue remains large and relatively stable, but growth does not appear strong enough to justify such high multiples. Net income and operating income in the current TTM are effectively absent, and EPS and forward EPS remain negative, which is the main factor weighing on the valuation. Dividend yield of 0.59% has declined compared with last year, so the dividend argument is weaker now than before. Overall, the fundamentals support a cautious downward re-rating rather than a higher target price, as the expensive valuation is combined with deteriorating earnings, liquidity, and debt dynamics.

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.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

MRK looks expensive on valuation multiples given weak current earnings and deteriorating liquidity; strong margins and ROE do not offset the pressure on valuation.

Key Points
Merck’s lineup appears strong enough to enable the company to overcome a fast-approaching patent cliff.
AbbVie’s core growth drivers have plenty of room to run, and the company boasts an attractive pipeline.
The healthcare sector is rebounding in 2026 after several years of underperformance relative to the market, and two companies leading the charge are Merck (NYSE:MRK) and AbbVie (NYSE:ABBV). Both healthcare giants have outperformed the broader equity market this year. Merck's shares have climbed 39%, while AbbVie's have gained 24%. Meanwhile, the S&P 500 is up about 12% year-to-date. Could the two drugmakers maintain their recent momentum over the near term? That's hard to say. It's always difficult to predict stock market movements over short periods. However, both companies look like great long-term picks. Here's why.
Image source: The Motley Fool.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Merck
Merck's financial results have been stronger than expected this year. In the second quarter, the company's revenue increased by 5% year over year to $16.6 billion, beating Wall Street estimates. The drugmaker reported a non-GAAP loss per share of $0.13, compared to net earnings per share (EPS) of $2.13 in the prior-year quarter, due to acquisition-related impacts.
Merck's most important growth drivers performed well. The company's Keytruda franchise posted sales of $8.4 billion, up 5% year over year, while its HPV vaccines, Gardasil and Gardasil 9, increased their combined revenue by 4% year over year to $1.2 billion. Merck will likely lose patent exclusivity for Keytruda by 2028, but the company's newer Keytruda Qlex, a subcutaneous version of the medicine, could help it retain a decent market share.
Keytruda Qlex first earned approval last year. It is much easier and faster to administer than the original intravenous version. The company should successfully switch many patients to Keytruda Qlex. Beyond its core growth franchise, Merck has earned approval for several newer products that could also contribute meaningfully over the medium term.
These include Winrevair, a medicine for pulmonary arterial hypertension. Second-quarter Winrevair revenue increased by 75% year over year to $588 million. The medicine could earn an important label expansion down the line as well. Further, Merck has an attractive pipeline. The company's promising candidates include a personalized cancer vaccine called intismeran autogene, which it is developing with Moderna (NASDAQ:MRNA).
Intismeran autogene recently posted excellent Phase 3 clinical trial results and is likely to earn approval across several indications. Merck's pipeline features several other promising products. Finally, the company boasts an attractive dividend program. Merck offers a forward yield of 2.3%, and it has increased its payouts by almost 90% over the past 10 years.
Merck's strong financial results, deep pipeline, and solid dividend program make the stock worth holding onto for the next decade.
AbbVie
AbbVie has also posted strong financial results this year. The company's second-quarter revenue grew by 10.2% year over year to almost $17 billion, while its adjusted EPS climbed 22.9% to $3.65. AbbVie's core growth drivers, Skyrizi and Rinvoq, are doing much of the heavy lifting, with both growing their sales by about 24% year over year.
They still have a long runway for growth. AbbVie expects no major loss of patent exclusivity through the end of the decade, and Skyrizi likely won't face biosimilar competition in the U.S. -- its most important market -- at least until 2033, with Rinvoq likely safe from U.S. generics until 2037. That grants AbbVie plenty of time to develop a sound succession strategy, and the company is already on it.
The pharmaceutical giant boasts several exciting pipeline candidates, including zumilokibart, a promising investigational medicine for eczema that could extend its leadership in immunology. AbbVie is also going after the weight loss market with a candidate called ABBV-295, an investigational long-acting anti-obesity medicine.
Investors should expect AbbVie to launch several new products over the next five years, and the company's core growth drivers, including products beyond Skyrizi and Rinvoq, should continue to perform well. Now turning to AbbVie's dividend program, the company is on a streak of 54 consecutive annual payout increases, when including the time it spent as a division of Abbott Laboratories (NYSE:ABT).
That makes AbbVie a Dividend King, a corporation with 50 (or more) straight annual dividend increases. That's a rare streak that AbbVie will seek to protect, making it an attractive dividend growth stock to hold onto for the long term.
Should you buy stock in Merck right now?
Before you buy stock in Merck, 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 Merck 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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 19, 2026.
Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Merck, and Moderna. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 High-Flying Dividend Stocks to Buy and Hold for a Decade

The S&P 500 Index ($SPX) (SPY) is down by -0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.30%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.71%. December E-mini S&P futures (ESZ26) are down -0.58%, and December E-mini Nasdaq futures (NQZ26) are down -1.54%.
Stock indexes are mostly lower today, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 3.5-week low. The broader market is under pressure today as the rout in chipmakers and AI-infrastructure stocks spreads globally, with South Korea’s Kospi Index sinking more than -7% and China’s Shanghai Composite falling to a 14-month low. Today’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks extended their losses today on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news today was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, the slump in global equity markets has sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low today of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%. Also, investors rotating out of chip stocks into software companies and defensive pharmaceuticals stocks are lifting the Dow Jones Industrials.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support today after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 32 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) are up +0.20% today. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. However, today’s selloff in global equity markets is curbing demand for risk assets, including crude.
Markets are discounting a 29% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.62%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +23 ticks today. The 10-year T-note yield is down -12.5 bp to 5.060%. Dec T-notes rallied to a 3-week high today, and the 10-year T-note yield fell to a 3-week low of 5.041%. Today’s selloff in global equity markets has boosted safe-haven demand for T-notes. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news is limiting gains in T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields are moving lower today. The 10-year German bund yield fell to a 5-week low of 3.353% and is down -10.7 bp to 3.359%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and is down -11.3 bp to 5.312%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting an 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-month low. SanDisk (SNDK) and Seagate Technology Holdings Plc (STX) are down more than -7%, and Intel (INTC), Lam Research (LRCX), and Western Digital (WDC) are down more than -6%. Also, Advanced Micro Devices (AMD), Applied Materials (APLD), and Marvell Technology (MRVL) are down more than -5%, and KLA Corp (KLAC) and Micron Technology (MU) are down more than -4%.
Cryptocurrency-exposed stocks are falling today, with Bitcoin (^BTCUSD) down more than -2% at a 3.5-week low. Iren Ltd (IREN) is down more than -10%, and Galaxy Digital Holdings (GLXY) and Riot Platforms (RIOT) are down more than -8%. Also, MARA Holdings (MARA) and BitMine Immersion Technologies (BMNR) are down more than -6%, and Robinhood Markets (HOOD) and Strategy (MSTR) are down more than -5%. In addition, Coinbase Global (COIN) is down more than -3%, and Circle Internet Group (CRCL) and Bullish (BLSH) are down more than -2%.
Cloud infrastructure stocks are under pressure today on debt concerns after credit-default swaps have priced in a more than 50% chance that CoreWeave could default on its debt within the next five years. Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are down more than -8%, and CoreWeave (CRWV) is down more than -6%. Also, Arista Networks (ANET) and Applied Digital (APLD) are down more than -5%.
Software stocks are climbing today as investors rotate out of chip stocks into software. Intuit (INTU) is up more than +5% to lead gainers in the Nasdaq 100, and Autodesk (ADSK) is up more than +4%. Also, Workday (WDAY) and Adobe Systems (ADBE) are up more than +3%, and Salesforce (CRM) and Thomson Reuters (TRI) are up more than +2%. In addition, IBM (IBM) and ServiceNow (NOW) are up more than +1%.
Defensive pharmaceutical stocks are climbing today amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), and Vertex Pharmaceuticals (VRTX) are up more than +3%, and Biogen (BIIB), Merck & Co (MRK), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) are up more than +2%. Also, Pfizer (PFE) is up more than +1%.
FMC Corp (FMC) is down more than -34% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Rocket Lab (RKLB) is down more than -13% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Penske Automotive Group (PAG) is up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) is up more than +5% to lead gainers in the S&P 500 after the Financial Times reported private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Walmart (WMT) is up more than +3% after Deutsche Bank upgraded the stock to buy from hold with a price target of $136.
Kimberly-Clark (KMB) is up more than +3% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
Commercial Metals (CMC) is up more than +2% after reporting Q4 net sales of $2.66 billion, better than the consensus of $2.54 billion.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Pressured as Chipmaker Selloff Deepens

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Sharply Lower on Inflation Woes and Slumping Chipmakers

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

In the latest close session, Merck (MRK) was down 2.66% at $145.31. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq appreciated by 0.24%.
Coming into today, shares of the pharmaceutical company had lost 0.39% in the past month. In that same time, the Medical sector lost 1.01%, while the S&P 500 lost 0.42%.
The upcoming earnings release of Merck will be of great interest to investors. The company's earnings report is expected on October 29, 2026. The company's upcoming EPS is projected at $2.25, signifying a 12.79% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $17.52 billion, up 1.39% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.77 per share and a revenue of $67.25 billion, signifying shifts of -69.15% and +3.44%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Merck. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. At present, Merck boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Merck is at present trading with a Forward P/E ratio of 53.99. This represents a premium compared to its industry average Forward P/E of 16.43.
We can also see that MRK currently has a PEG ratio of 6.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Large Cap Pharmaceuticals industry had an average PEG ratio of 2.09.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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
This article originally published on Zacks Investment Research (zacks.com).

Why Merck (MRK) Dipped More Than Broader Market Today

Wednesday, September 30, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Broadcom Inc. (AVGO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Up on Excellent Data from PCE and ADP
Today's Featured Research Reports
Shares of Apple have gained +21.5% over the year-to-date period against the Zacks Computer - Micro Computers industry’s gain of +28%. The company’s third-quarter fiscal 2026 results showed broad demand across iPhone and Mac, while Services benefited from a record installed base and rising paid subscriptions. Siri AI and deeper on-device intelligence can strengthen ecosystem engagement and support future hardware upgrades.
Apple’s cash generation and continued buybacks also provide support. However, fourth-quarter fiscal 2026 growth is expected to slow as foreign exchange and supply constraints intensify. Memory costs are rising, recent price increases may test demand, and tariff refunds provided a temporary benefit to margins and earnings.
App Store changes and regulatory actions remain an added risk to Services economics. These offsets leave the long-term growth case intact, but the near-term mix of execution, cost and policy risks supports a Neutral view.
(You can read the full research report on Apple here >>>)
Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+5.9% vs. -3.6%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling Productivity and Business Processes revenue growth.
ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. Azure and other cloud services revenue grew 43% at cc in fiscal Q4, with customer demand continuing to exceed available capacity.
Customer concentration risk remains tied to large OpenAI-related Azure commitments. Microsoft confronts intense competition from AWS and Google Cloud and escalating regulatory scrutiny. Capacity constraints persisting into fiscal 2027 limit revenue potential despite record capital spending.
(You can read the full research report on Microsoft here >>>)
Shares of Broadcom’s have gained +2.9% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +35.3%. The company is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software. Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility.
Free cash flow remains substantial, non-AI semiconductor demand is stabilizing and debt reduction improves financial flexibility. However, the investment case is balanced by high customer concentration, intense competition, declining gross margin as XPUs mix higher, and execution risk tied to large AI infrastructure commitments.
Broadcom also remains exposed to a sizable debt burden and integration complexity. These factors offset the strength of Broadcom’s AI-led growth profile and support a Neutral recommendation.
(You can read the full research report on Broadcom here >>>)
Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), Carnival Corp. Ltd. (CCL) and Ulta Beauty, Inc. (ULTA).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Strong iPhone 17 & Services Growth to Aid Apple's (AAPL) Prospects
Strong Demand for Networking Products Aids Broadcom (AVGO)
Featured Reports
Merck's (MRK) Growth Outlook Stable Despite Keytruda Patent Cliff
Though Merck's key drug Keytruda loses exclusivity in 2028, its sales remain strong. Its growing drug pipeline, potential new blockbuster drugs and recent M&A deals keep the Zacks analyst optimistic.
Carnival (CCL) Banks on Booking Improvements Amid High Costs
Per the Zacks analyst, Carnival benefits from solid demand, robust booking volumes and destination strategy. However, increased cruise costs and geopolitical uncertainty are concerns.
Ulta Beauty (ULTA) Strengthens Growth With Omnichannel Reach
Per the Zacks analyst, Ulta Beauty's omnichannel strength is evident in high-teens e-commerce growth, with over 50% of online orders store-fulfilled and its app driving more than 60% of digital sales.
Ovintiv Inc. (OVV) to Benefit From Quality Acreage in Key Basins
The Zacks analyst believes that Ovintiv's quality acreage in key North American basins supports production growth, although weak AECO and Waha gas prices could weigh on margins.
Outsourcing Demand & Capital Market Activity Aid Jones Lang (JLL)
Per the Zacks analyst, Jones Lang gains from outsourcing demand, better capital markets activity and advisory businesses. However, uneven transaction timing and competition may limit gains.
Expansion Efforts Aid Commerce Bancshares' (CBSH) Top Line, Costs Ail
Per the Zacks analyst, Commerce Bancshares' revenue growth prospects are encouraging, supported by loan growth and its expansion efforts. Yet, rising expenses and real estate exposure warrant caution.
Essent Set to Grow on Solid Persistency, Prudent Pricing
Per the Zacks analyst, Essent's persistency, pricing, risk transfer, capital deployment and ample liquidity support durable earnings and book value growth weighed on by affordability constraints.
New Upgrades
Record Backlog, Higher Deliveries Support Growth at Embraer (EMBJ)
Per the Zacks analyst, Embraer benefits from a record backlog supported by strong demand across markets. Higher aircraft deliveries will also boost its growth.
Secular Mix and Productivity Bolster Avient's (AVNT) Growth
Per the Zacks analyst, Avient benefits from a stronger growth mix, pricing discipline and productivity gains, supporting durable margins, cash flow and greater capital flexibility.
Helios (HLIO) Gains From Demand Growth and Margin Strength
Per the Zacks analyst, Helios benefits from strong demand momentum, strength across segments and improved profitability. Solid margins, aided by higher volumes and a favorable business mix bodes well.
New Downgrades
High Fuel & Labor Costs Dent Delta's (DAL) Growth Prospects
The Zacks analyst is concerned about high fuel costs, as these expenses represent a significant portion of an airline's total costs. High labor costs represent another challenge.
Optimum (OPTU) Plagued by Fierce Competition, High Leverage
Per the Zacks analyst, growing competition in the broadband business is expected to impact Optimum's top line. Elevated debt burden is limiting investment in growth initiatives.
Cooper Companies (COO) Faces Execution Risks Despite Premium Growth
Per the Zacks analyst, Cooper Companies faces pressure from channel destocking, Asia-Pacific weakness, softer CVI growth and leverage, despite gains from MyDay, MiSight and fertility.
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 innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
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
This article originally published on Zacks Investment Research (zacks.com).

Top Analyst Reports for Apple, Microsoft & Broadcom

Key Points
Moderna was known for its coronavirus vaccine a few years ago, but it’s greatly expanded its pipeline in recent years.
Investors, recognizing the growth potential, piled into the stock this year, and it’s heading for a gain of more than 500%.
Moderna (NASDAQ: MRNA) delivered an enormous win for investors during the early days of the pandemic thanks to its leadership in the coronavirus vaccine market. But when demand for the vaccine, at the time the biotech's only commercialized product, declined, so did the company's earnings. And the stock followed, spending a few years in the doldrums.
But in recent times, Moderna has made a turnaround. The company's cost realignment plan is bearing fruit, and pipeline candidates are progressing toward the finish line. Investors were particularly impressed with data from a late-stage trial of Moderna's personalized cancer vaccine. Meanwhile, Moderna has also won approval for new products, the most recent being an mRNA flu vaccine, launching for the current season. The biotech even predicts that revenue this year may advance as much as 10%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Considering all of this, my prediction is that Moderna stock will soar 100% by 2030. Let's consider the case.
Moderna has launched five products
So, first, let's take a look at Moderna's current product situation and the prospects ahead. Right now, the company sells four products in the U.S.: two coronavirus vaccines, a respiratory syncytial virus vaccine, and a flu vaccine. And in Europe, it won approval for a combined coronavirus and flu vaccine. These products are the revenue engine at the moment, as Moderna fuels research across its pipeline, with a focus on oncology and rare diseases.
In the recent earnings report, Moderna reiterated its forecast for as much as 10% revenue growth in the current year thanks to expansion of its updated coronavirus vaccine. Considering last year's revenue of $1.9 billion, that would bring 2026 revenue to about $2 billion. And the biotech expects to deliver a reduction in GAAP operating expenses.
But what truly has captured the attention of investors is Moderna's progress in its oncology program. The company is studying mRNA-4157 in collaboration with Merck across nine phase 2 and phase 3 trials -- these include multiple tumor types, from melanoma to bladder cancer. Moderna recently announced positive data from a phase 3 trial of its product in combination with Merck's Keytruda: The combo met its goals in recurrence-free survival and survival without the cancer spreading to distant organs in melanoma patients who had previously undergone surgery.
This potential product is one that could be important for Moderna and for patients due to its ability to tackle various tumor types and the fact that it's personalized for each patient. That said, the manufacturing and roll-out of a personalized vaccine is likely to be slower and more challenging than the processes for a one-size-fits-all product. It's key to keep that in mind as this candidate advances and even potentially reaches commercialization. So revenue growth may take time.
Investors have piled into Moderna stock this year
The early days of Moderna's turnaround, as the company expanded beyond the coronavirus vaccine, didn't immediately win over investors, as I mentioned above. But this year, amid the company's research successes, investors jumped on board, helping the stock rise a mind-boggling 500%.
So, why do I think the stock will rise only 100% from here through 2030? First, it's important to keep in mind that Moderna had fallen to very low levels in recent years, making it "easier" to post an enormous gain on good news.
Second, I'm basing my prediction on what we know so far about revenue growth. The company hasn't offered forecasts for 2030 or revenue projections for a specific potential product, such as the melanoma therapeutic vaccine.
We could imagine that if Moderna increases revenue by 10% this year, and then by 10% each year through 2029, annual revenue may approach $3 billion. Today, Moderna's forward price-to-sales ratio has climbed to 37. If the stock rises 100%, that would bring it to a price-to-sales ratio of 52, which is higher than today's level. So my prediction actually isn't as modest as it initially appears.
And I'm willing to go out on a limb and say that Moderna's annual revenue may be higher than that $3 billion level if its pipeline programs produce additional products. Also, any positive pipeline data generally stirs up excitement about this company's potential and pushes investors to buy as they look ahead to long-term prospects -- without worrying too much about current valuation. And that's why I predict that the stock could climb at least 100% by 2030.
Should you buy stock in Moderna right now?
Before you buy stock in Moderna, 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 Moderna 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 30, 2026.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Merck and Moderna. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: Moderna Stock Will Soar 100% by 2030

Key Points
Eli Lilly's dominance in its core area and diversification efforts should allow it to perform well and regularly increase its dividend.
Despite some headwinds, Merck's long-term prospects look bright, and its dividend program appears safe.
Several investing trends are sweeping through Wall Street right now, including artificial intelligence (AI), robotaxis, and others. Investors shouldn't miss the opportunity to capitalize on these fast-growing markets, but it's also important not to forget tried-and-true methods for earning above-average long-term returns. One of them is to invest in excellent dividend-paying companies. Let's consider two that are worth a second look right now: Eli Lilly (NYSE:LLY) and Merck (NYSE:MRK).
Image source: The Motley Fool.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Eli Lilly
Eli Lilly has perhaps been one of the best growth stocks in the pharmaceutical industry over the past five years. The company's financial results have been excellent, thanks to its diabetes and weight loss products, Mounjaro and Zepbound, respectively. In the second quarter, Eli Lilly's revenue increased by 48% year over year to $23 billion, while its adjusted earnings per share climbed 33% year over year to $8.38. Mounjaro and Zepbound both performed well during the period and could maintain momentum over the medium term.
In August, Mounjaro earned approval in the U.S. to reduce the risk of major cardiovascular events in adults with type 2 diabetes who are at high cardiovascular risk. The medicine is being tested across several additional indications. It could earn additional label expansions, in addition to riding the wave of the rapidly growing market for GLP-1 medicines (Mounjaro and Zepbound mimic the actions of the GLP-1 and GIP hormones).
Further, Eli Lilly has other attractive pipeline candidates that will help it strengthen its lead in this space even as competition intensifies. Eli Lilly's next-gen medicines, including retatrutide and eloralintide, could both help the company expand the market. Retatrutide posted outstanding Phase 3 results and could attract patients who haven't achieved sufficient weight loss with existing approved medicines.
And eloralintide posted promising Phase 2 clinical trial results while showing highly encouraging tolerability, so it might eventually appeal to patients who may be avoiding weight-loss medicines due to their side effects. Of course, eloralintide still has to pass pivotal studies (it is undergoing Phase 3 trials) before earning approval. But the point is that Eli Lilly's pipeline in its core therapeutic area is attractive.
The company has promising products and pipeline candidates in other areas as well, as it seeks to diversify its portfolio. That makes for a healthy business that could maintain consistent revenue and earnings growth over time, helping the company sustain its dividend program. Eli Lilly's forward yield of 0.6% isn't impressive, but that's because its shares have outperformed the broader market in recent years.
Meanwhile, it has also increased its dividend at a good pace -- it has more than doubled over the past five years. So, Eli Lilly isn't just an excellent growth stock. It is a great dividend stock, too, and given its dominance in its core market and deep pipeline, it could deliver excellent returns through 2036.
2. Merck
Merck's biggest growth driver, Keytruda, a cancer medicine, will lose its patent exclusivity in the U.S. in 2028. Keytruda is currently one of the world's best-selling brands, and even with it, Merck's revenue isn't growing that fast. In the second quarter, the company's sales came in at $16.6 billion, up 5% year over year. However, Merck's prospects are much stronger than it seems at first.
The company has earned approval for several products in recent years that should help replace Keytruda. Perhaps the most important among them is Keytruda Qlex, a subcutaneous version of the medicine. The original formulation is administered via intravenous infusion, but that takes as much as half an hour. The subcutaneous version takes a couple of minutes.
This more convenient dosing is advantageous to patients and physicians and could help Keytruda Qlex retain many of the original formulation's patients beyond the 2028 patent cliff. Several other newer medicines, such as Winrevair for pulmonary arterial hypertension and Capvaxive, a pneumonia vaccine, could contribute for a while as well. And Merck has a deep pipeline with several products with blockbuster potential.
So, Merck's prospects remain intact, and the company's dividend program looks strong. Merck has increased its payouts by almost 90% over the past decade, and it currently offers a forward yield of 2.3%. Merck is an attractive dividend stock to hold onto for the next 10 years.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, 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 Eli Lilly 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 $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 30, 2026.
Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has positions in and recommends Eli Lilly and Merck. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Outstanding Dividend Stocks to Buy and Hold for a Decade

Merck MRK and partner Daiichi Sankyo announced that they have voluntarily withdrawn a regulatory filing with the FDA seeking accelerated approval for an investigational antibody-drug conjugate (ADC) called ifinatamab deruxtecan in lung cancer.
The companies were seeking approval for the ADC candidate to treat adult patients with extensive-stage small cell lung cancer (ES-SCLC) with disease progression on or after platinum-based chemotherapy.
Why Did Merck & Daiichi Withdraw the Filing?
The decision was based on discussions with the FDA, which indicated that the available data — including results from the phase II IDeate-Lung01 study — did not satisfy the requirements needed to support accelerated approval.
However, the companies continue to evaluate ifinatamab deruxtecan in ES-SCLC. Patient enrollment is nearing completion in the phase III IDeate-Lung02 study, which compares the ADC with physician’s-choice chemotherapy in patients with relapsed ES-SCLC after one prior line of platinum-based chemotherapy.
The companies could use data from this late-stage study to support a future regulatory filing for ifinatamab deruxtecan with the FDA and other global health authorities, depending on the results. Merck and Daiichi Sankyo are also evaluating the ADC in two additional late-stage studies for castration-resistant prostate cancer (CRPC) and esophageal squamous cell carcinoma (ESCC).
MRK’s Stock Performance
The company’s shares have risen 41% year-to-date compared with the industry’s 13% growth.
Another Blow to Merck’s Daiichi Sankyo Partnership
Ifinatamab deruxtecan is being co-developed by Merck and Daiichi as part of an agreement signed in 2023. This deal also involved two other ADCs, namely patritumab deruxtecan and raludotatug deruxtecan.
Notably, this is the second candidate being developed under the agreement that was voluntarily withdrawn. Last year, Merck and Daiichi voluntarily withdrew a filing with the FDA for patritumab to treat certain previously-treated adult patients with advanced non-small cell lung cancer (NSCLC). The filing had originally been submitted seeking accelerated approval based on results from the phase II HERTHENA-Lung01 study. However, the companies subsequently withdrew the submission after top-line overall survival results from the confirmatory phase III HERTHENA-Lung02 study failed to achieve statistical significance, following discussions with the FDA.
The latest setback could create an opportunity for competing ADCs being developed by GSK plc GSK and Roche RHHBY. Earlier this month, GSK’s risvutatug rezetecan (ris-rez) and Roche’s tambotatug pelitecan (tam-peli) delivered positive phase III results in relapsed SCLC in China. Ris-rez reduced the risk of death by 54% versus topotecan (a chemotherapy drug) in the ARTEMIS-008 study, while tam-peli achieved a similar 54% reduction in the risk of death versus topotecan in the TAISHAN-302 study.
Merck & Co., Inc. Price
MRK’s Zacks Rank
Merck currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank 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
This article originally published on Zacks Investment Research (zacks.com).

Merck, Daiichi Withdraw FDA Filing for Lung Cancer Therapy

Merck MRK announced that the FDA has expanded the label of its oral cancer drug Welireg (belzutifan) for a third indication in advanced renal cell carcinoma (RCC), the most common type of adult kidney cancer.
The drug has been approved in combination with Eisai’s blockbuster cancer drug Lenvima (lenvatinib) to treat adult patients with advanced RCC with a clear cell component (ccRCC) following a PD-1/PD-L1 inhibitor.
The approval is supported by data from the phase III LITESPARK-011 study, which evaluated the combination therapy against Exelixis’ (EXEL) blockbuster drug Cabometyx (cabozantinib). The study achieved one of its dual primary endpoints of progression-free survival. Data showed that the regimen reduced the risk of disease progression or death by 26%. Though the combination did not meet the other primary endpoint of overall survival (OS), it showed a trend toward improvement.
MRK’s Stock Performance
The company’s shares have risen 41% year to date compared with the industry’s 13% growth.
Welireg Growth Provides a Catalyst for Merck
The latest approval comes as the drug’s sales are already expanding rapidly. Merck reported $470 million from Welireg sales in the first half of 2026, up 57% year over year, driven by higher demand in the United States and continued launch uptake in international markets.
The new indication could further expand Welireg’s addressable patient population in advanced ccRCC, particularly as it moves the drug into another treatment setting following PD-1/PD-L1 therapy. It also gives Merck another treatment option in a market where Cabometyx is an established therapy.
Welireg is already approved for two other ccRCC indications. As a monotherapy, it is approved for certain patients with advanced ccRCC following treatment with both a PD-1/PD-L1 inhibitor and a VEGF-TKI. It is also approved in combination with Merck’s blockbuster cancer drug Keytruda for the adjuvant treatment of adults with ccRCC at intermediate-high or high risk of recurrence following nephrectomy, with or without resection of metastatic lesions.
The drug is also approved for certain adult patients with von Hippel-Lindau, a rare inherited disorder that can cause tumors to develop in multiple organs. It is also approved to treat patients aged 12 years and older with locally advanced, unresectable or metastatic pheochromocytoma or paraganglioma, rare tumors that arise in hormone-producing tissues that can produce excess hormones.
Merck is also evaluating Welireg as part of a broader clinical program in RCC and selected solid tumors across different treatment settings.
MRK’s Zacks Rank
Merck currently carries a Zacks Rank #3 (Hold).
Merck & Co., Inc. Price
Our Key Picks Among Biotech Stocks
Some better-ranked stocks in the sector include Precigen PGEN and AC Immune ACIU, each of which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Over the past 60 days, estimates for Precigen’s 2026 bottom line have improved from a loss of 2 cents to earnings per share of 24 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 73 cents. PGEN shares have gained 85% year to date.
Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.
Over the past 60 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents per share. ACIU shares have lost 20% year-to-date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
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

Merck & Company, Inc.

Options Strategies