New Cholesterol Pill, Earnings Growth Boost Merck Shares

MRK is a health care company that makes prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, including a new pill aimed at cutting cholesterol. Its first-quarter fiscal 2026 earnings report showed revenue of $16.29 billion (a 4.9% year-over-year gain), sales of cancer treatment Keytruda hitting $8.0 billion (an 8% rise), and increased annual revenue and per-share earnings guidance to $67 billion and $5.15, respectively. The company reports again on Aug. 4.

No wonder MRK shares are up 21% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Merck Bringing in Big Money

Institutional volumes reveal plenty. In the last year, MRK has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in MRK shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Merck.

Merck Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MRK has had strong profits and earnings growth:

• Profit margin (+28.1%)
• 3-year EPS growth rate (+1,502.8%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +244.7%.

Now it makes sense why the stock has been generating Big Money interest. MRK has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Merck has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

MRK produced 122 rare Outlier 20 inflow signals since 1990, gaining 3,453% in that time. The blue bars below show when the stock was a top pick…institutions have been fans for a long time:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Merck Price Prediction

The MRK action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns MRK personally at the time of publication.

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