Here's Why Merck (MRK) is a Strong Growth Stock

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2]. Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [2][3]. Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, aiming to find attractive investment opportunities [3]. Growth Score - The Growth Style Score assesses a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow, targeting stocks with sustainable growth prospects [4]. Momentum Score - The Momentum Style Score capitalizes on price trends, utilizing factors like recent price changes and earnings estimate shifts to identify optimal entry points for high-momentum stocks [5]. VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth forecasts, and positive momentum, serving as a key indicator alongside the Zacks Rank [6]. Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8]. Stock Analysis: Merck (MRK) - Merck & Co. has a strong portfolio, notably with Keytruda, which accounts for approximately 50% of its pharmaceutical sales, driving consistent revenue growth [11]. - Currently rated 3 (Hold) on the Zacks Rank, Merck has a VGM Score of A and a Growth Style Score of B, with projected year-over-year earnings growth of 17.3% for the current fiscal year [12]. - Recent upward revisions in earnings estimates and a positive earnings surprise average of +5.1% further support Merck's potential as a growth investment [12][13].