Merck & Co. Stock: Is MRK Outperforming the Healthcare Sector?

Core Viewpoint - Merck & Co., Inc. is a leading global healthcare company with strong performance in pharmaceuticals and animal health, showing significant growth in sales and adjusted earnings per share in recent quarters [1][5][6] Company Overview - Merck specializes in the research, development, and distribution of prescription medicines, vaccines, and animal health products, divided into Pharmaceuticals and Animal Health segments [1] - The company is headquartered in Rahway, New Jersey, and has a market capitalization of $249.20 billion, classifying it as a "mega-cap" stock [2] Stock Performance - Merck's stock reached a 52-week high of $105.84 on November 25, following an upgrade to "Overweight" by Wells Fargo analyst Mohit Bansa, indicating confidence in the company's future beyond its flagship drug Keytruda [3] - Over the past three months, Merck's stock has gained 23.9%, outperforming the Health Care Select Sector SPDR Fund (XLV), which gained 16.6% in the same period [3] - In the longer term, Merck's stock increased by 4.5% over the past 52 weeks, underperforming XLV's 9.2% gain, but showed a strong 36.2% increase over the past six months compared to XLV's 21.8% [4] Financial Performance - For the third quarter of fiscal 2025, Merck reported a 4% year-over-year increase in sales to $17.28 billion, slightly above the $17.06 billion expected by analysts [5] - Pharmaceutical sales specifically increased by 4% to $15.61 billion, driven by growth in oncology, cardiovascular, and diabetes segments [6] - The adjusted earnings per share (EPS) rose by 64% year-over-year to $2.58, exceeding analysts' expectations of $2.36 [6] - The company also noted its acquisition of Verona Pharma and increased spending in R&D and U.S. manufacturing as potential growth drivers [6]