Is Merck & Co., Inc. (MRK) the Best Dow Stock?

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We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where Merck & Co., Inc. (NYSE:MRK) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is Merck & Co., Inc. (MRK) the Best Dow Stock?
Is Merck & Co., Inc. (MRK) the Best Dow Stock?

A close-up of a person's hand holding a bottle of pharmaceuticals.

Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 91

Short Interest as of Apr 30, 2025: 1.67%

Merck & Co., Inc. (NYSE:MRK) is a healthcare company. It generates its revenues through the Animal Health and Pharmaceutical segments. It provides human health pharmaceuticals for cardiovascular, oncology, neuroscience, diabetes, and other areas.

The company’s new product launches and sustained growth of major therapies like KEYTRUDA continue to drive sales growth. Its favorable product mix and operational efficiency played a significant role in driving profitable growth and margin expansion in the last year.

Heading into 2025, Merck & Co., Inc. (NYSE:MRK) expects full-year revenue to be in the range of $64.1 billion to $65.6 billion. It revised its EPS guidance downward to between $8.82 and $8.97. However, aided by demand recovery and new product launches, management is confident in achieving stronger growth in the latter half of the year.