New Cholesterol Pill, Earnings Growth Boost Merck Shares

Shares of Merck & Co., Inc. (MRK) are rising thanks to strong earnings growth and the development of a new cholesterol pill. The company's first-quarter fiscal 2026 earnings report showed revenue of $16.29 billion, a 4.9% year-over-year gain, with sales of its cancer treatment Keytruda reaching $8.0 billion, an 8% rise. Merck also increased its annual revenue and per-share earnings guidance to $67 billion and $5.15, respectively. The stock is up 21% year-to-date, and institutional investors have shown significant buying interest, with MoneyFlows data indicating heavy betting on the stock. Merck has a history of strong financial performance, including a profit margin of +28.1% and a 3-year EPS growth rate of +1,502.8%. EPS is estimated to increase by +244.7% this year. The company has generated 122 rare Outlier 20 inflow signals since 1990, during which its stock has gained 3,453%. Given its historical gains and strong fundamentals, Merck is considered a potentially valuable addition to a diversified portfolio.