We recently compiled a list of the Top 12 Stocks to Buy According to Bourgeon Capital.In this article, we are going to take a look at where Merck & Co., Inc. (NYSE:MRK) stands against the other stocks to buy according to Bourgeon Capital.
Bourgeon Capital Management LLC is an investment advisory firm headquartered in Darien, Connecticut. Founded in 1999 by seasoned financial professional John Aniblo Zaro, the firm specializes in actively managed, separate accounts with investment portfolios consisting primarily of stocks and bonds. In 2002, Bourgeon Capital expanded its leadership team when Michael Keohane joined SAC Capital to co-manage the firm’s long/short hedge fund. With a portfolio value of nearly $535.55 million by the end of December 2024, Bourgeon Capital is known for providing personalized investment strategies designed to manage risk while achieving long-term growth.
John Zaro, the firm’s founder and managing partner, has an extensive background in investment management spanning several decades. In addition to his Bachelor of Arts degree in Political Science and Economics from Stanford University, he is a Chartered Financial Analyst (CFA) and an active member of the New York Society of Security Analysts.
John Zaro’s career in finance has been marked by influential roles at major financial institutions; it began at Morgan Stanley Smith Barney LLC where he held the role of vice president from 1984 to 1991. Later, he served as a portfolio manager and vice president at J.P. Morgan Investment Management from 1991 to 1997 during which he managed substantial assets for clients. Just before establishing Bourgeon Capital, Zaro held the positions of Chief Investment Officer and Managing Director at Warburg Pincus Asset Management from 1997 to 1999. During his time there, he played a key role in shaping investment strategies for high-net-worth clients. With expertise in portfolio and alpha target management, Zaro was instrumental in refining investment processes for private clients and high-net-worth individuals.
With over two decades of experience, Zaro founded Bourgeon Capital with the vision of offering a more client-centric approach to wealth management. His goal has always been to foster strong, long-term relationships with clients through honest and strategic financial guidance. Bourgeon Capital continues to uphold this commitment, ensuring that each client’s investment strategy is tailored to their unique financial needs and aspirations.
In recognition of his accomplishments in wealth management, Morgan Stanley announced in 2022 that Zaro, then serving as a First Vice President and Financial Advisor at the firm’s Wealth Management office, was named to Forbes Magazine’s prestigious list of Top Next-Gen Wealth Advisors. This ranking evaluates candidates based on various qualitative and quantitative factors, including industry experience, leadership experience, assets under management, revenue trends, and compliance records. The selection process also incorporates insights gained from extensive interviews.
Bourgeon Capital’s investment philosophy is centered on achieving consistent, long-term returns while minimizing volatility. The firm prioritizes risk management by employing strategies that aim to reduce extreme market fluctuations. A key approach under Zaro’s leadership has been investing excess cash in the bond market to capitalize on higher interest rates. This strategy reflects the firm's commitment to balancing risk and reward while ensuring that clients’ investments align with their financial goals.
Our Methodology
The stocks discussed below were picked from Bourgeon Capital’s Q4 2024 13F filings. They are compiled in the ascending order of Bourgeon Capital’s stake in them as of December 31, 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 Very Cheap Stock To Buy Right Now?
A close-up of a person's hand holding a bottle of pharmaceuticals.
Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical company dedicated to advancing healthcare through innovative medicines, vaccines, biologic therapies, and animal health products. With a strong focus on oncology, vaccines, infectious diseases, cardiometabolic disorders, immunology, and neuroscience, Merck has been at the forefront of medical advancements for over 130 years. The company prioritizes research and development to address current and future health challenges while fostering a diverse and inclusive workforce. Through its commitment to sustainability and responsible operations, Merck & Co., Inc. (NYSE:MRK) aims to create a healthier and safer world for people and communities worldwide.
Headquartered in Rahway, New Jersey, Merck is one of the largest pharmaceutical companies globally, operating as Merck Sharp & Dohme (MSD) outside the U.S. and Canada. Originally founded as the American arm of Germany’s Merck Group in 1891, the company has grown into a leader in the industry, ranking among the top five pharmaceutical firms by revenue. The company's portfolio includes several blockbuster drugs and vaccines, such as Keytruda for cancer immunotherapy, Januvia for type 2 diabetes, and Gardasil for HPV prevention. Other significant products include treatments for infectious diseases, immunological disorders, and various vaccines, reinforcing the company’s role in improving global health.
Merck & Co., Inc. (NYSE:MRK) delivered a strong financial performance in the fourth quarter of 2024, reporting $15.62 billion in revenue—an increase of 6.8% compared to the same period the previous year. This growth highlights the company's ability to expand its market presence and sustain solid business momentum. Additionally, Merck exceeded analyst expectations with earnings per share (EPS) of $1.72, surpassing projections of $1.67.
Merck & Co., Inc. (NYSE:MRK)'s consistent revenue growth and ability to outperform earnings estimates reinforce its position as a strong investment option. With a robust pipeline of innovative drugs and vaccines, the company continues to capitalize on high-demand healthcare solutions, making it a compelling stock for long-term growth and stability.
GreensKeeper Asset Management stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:
“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”
Overall MRK ranks 6th on our list of the stocks to buy according to Bourgeon Capital. While we acknowledge the potential for MRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
