Merck an Unhealthy Stock to Sell

By
A A A

Merck & Co. (NYSE: MRK ) - Following a major advance in the stock market, investors should review their holdings and cull out non-performers that are inhibiting overall portfolio profits. Despite being a global health care company, MRK is one of those stocks to sell.

Not only is the stock still in a bear trend, but the past five years have averaged a negative earnings growth of about 33%, and current profit margins are at a mere 1.87% in an industry that averages in the teens.

About a month ago, TD Ameritrade cut their opinion of MRK to "reduce," and we agree. Even though the dividend yield is at 4.7%, there is no assurance that it will stay at that level, and an increase in bond interest rates would bring in sellers who have held this stock as a "bond substitute."


Sell MRK at the market.

Trade of the Day - Merck & Co. (NYSE: MRK) Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: MRK

Sam Collins

Sam Collins

More from Sam Collins:

Related Videos

Stocks

Referenced

71%

Most Active by Volume

64,655,493
  • $17.88 ▼ 1.38%
53,363,101
  • $18.51 ▼ 6.98%
42,789,793
  • $94.01 ▼ 1.26%
40,818,762
  • $121.30 ▼ 0.87%
38,086,152
  • $23.28 ▼ 9.17%
36,103,930
  • $14.20 ▼ 0.77%
31,870,696
  • $14.83 ▼ 1.79%
29,019,850
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com