Is Merck Stock Outperforming the Nasdaq?

Rahway, New Jersey-based Merck & Co., Inc. (MRK) is a global research-driven biopharmaceutical company focused on developing medicines, vaccines, and animal-health products. Known as MSD outside the U.S. and Canada, Merck operates through two main businesses: Pharmaceuticals and Animal Health. Valued at a market cap of $297 billion, its pharmaceutical portfolio spans oncology, vaccines, cardiometabolic disease, infectious diseases, and other therapeutic areas. 

Companies with a market cap of $200 billion or more are typically referred to as “mega-cap stocks.” It fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the general drug manufacturers industry. Merck combines a dominant oncology franchise, a broad vaccine portfolio, an expanding pipeline of newer medicines, and a large animal-health business. Its key investment consideration is balancing the continued strength of Keytruda and newer products against pressure on mature franchises such as Gardasil and the eventual impact of Keytruda's patent expiry.

Despite its strength, MRK stock slipped 5.5% from its 52-week high of $156.92, reached on Aug. 25. The stock is up 23.7% over the past three months, notably outperforming the Nasdaq Composite’s ($NASX) 1.9% fall during the same time frame.

However, MRK has rallied the broader market over the longer term. The stock surged 78.3% over the past 52 weeks, while NASX delivered 21.6% returns over the same time frame. In 2026, MRK is up 40.9%, outpacing the index’s 13.6%. 

To confirm a bullish trend, MRK has traded above its 200-day moving average since early November and above its 50-day moving average since late May. 

On Aug. 19, Merck shares jumped 11.3% after the company and partner Moderna announced a landmark Phase 3 win for their personalized mRNA cancer vaccine, intismeran autogene, in combination with Keytruda. The regimen significantly reduced the risk of melanoma recurrence or death and also improved distant metastasis-free survival versus Keytruda alone, marking the first positive Phase 3 result for an individualized neoantigen therapy and an mRNA-based cancer treatment. The breakthrough not only strengthens Merck’s oncology pipeline but also offers a potentially important new growth opportunity as Keytruda approaches patent expiration.

When stacked against its peer, Amgen Inc. (AMGN), MRK has outperformed. Over the past year, AMGN stock has surged 51.4%.  

Wall Street is taking a moderately optimistic stance on MRK. Among the 28 analysts covering the stock, the overall consensus rating is a “Moderate Buy.” It currently trades above the mean price target of $148.30.