Merck is just a trade for us, this investor says

ValueTrend Wealth Management president and chief portfolio manager Keith Richards says Merck (Merck Stock Quote, Chart, News, Analysts, Financials NYSE:MRK) is a short-term trading position for his firm, with the stock needing to hold recent technical support.

Speaking on BNN Bloomberg’s Market Call on July 14, Richards said he likes the healthcare sector, but described Merck as a “rental” rather than a long-term holding.

He noted that Merck bottomed in 2025 near US$75.00, moved higher to about US$90.00, pulled back and then broke out above its prior peak. Richards said his target is about US  $130.00, but the stock has recently failed near that level and is now testing support around US$120.00

“I’m hoping it holds,” Richards said.

Richards said Merck is a small position, representing about 1% of the portfolio, because of the stock’s volatility. If it holds support and begins to rebound, he said the firm could add to the position and look for a move back toward US$135.00

“This is just a rental,” he said.

Merck shares closed July 14 at US$123.56. The stock was up 12.95% over the previous three years. Of the analysts covering the stock, 24 rated it “Buy,” nine rated it “Hold” and none rated it “Sell,” with a consensus target of US$132.61.

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