Skip to main content
Advertisement
Advertisement

New Cholesterol Pill, Earnings Growth Boost Merck Shares

By: 
Lucas Downey
Trading charts on screens and Wall Street panel

Shares of Merck & Co., Inc. (MRK) rise 3,453% since 1990 thanks to institutional investors.

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:

Line graph showing Merck & Co., Inc. (MRK) stock price trends from August 2025 to July 2026, with price values ranging from $70 to $130 on the vertical axis. The graph highlights multiple green vertical bars representing inflows and a few red bars for outflows, indicating significant investment activity spikes around late November, late February, and late July.
MRK gained 51.6% thanks to institutional inflows over the course of a year. Source: www.moneyflows.com

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:

Line chart showing Merck & Co., Inc. (MRK) stock price trends from 1990 to 2026, with price on the vertical axis ranging from $0 to $120. The chart highlights steady growth with notable peaks around 2022, marked by blue vertical lines for outlier inflows and yellow lines for outlier outflows, indicating significant trading activity spikes.
MRK has attracted 122 outlier inflow signals since 1990, proving this is a cornerstone holding for Big Money investors. Source: www.moneyflows.com

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.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

Advertisement