Investor Optimism Around Keytruda Drives Merck Stock To Golden Cross Ahead of Earnings

Zinger Key Points
  • As Merck moves closer to reporting its fourth-quarter earnings on Feb. 1, a key technical indicator validated momentum.
  • Since November, Merck stock has been boosted by positive news and developments around its cancer drug, Keytruda.

As Merck & Co Inc MRK moves closer to reporting its fourth-quarter results in three days, its stock is validating investor confidence. While Merck stock is up 20% since Nov. 28, a technical signal indicates the rally isn’t over yet. Merck would be reporting on Feb. 1 before market hours.

Keytruda – Key To Stock Surge

Since November 2023, Merck’s cancer drug, Keytruda (pembrolizumab) has received 4 FDA approvals with the latest coming in on Jan. 12. The latest approval clears the use of Keytruda plus chemoradiotherapy as treatment for patients with FIGO 2014 Stage III-IVA cervical cancer.

Related:

The surge in Merck stock since November is primarily driven by investor optimism around higher sales of Keytruda, Gardasil, and its Covid-19 antiviral – Lagevrio. The company reported continued market share gains for Keytruda in Q3, which saw a 17% y-o-y jump in sales to $6.3 billion.

Since then, growing excitement for Keytruda has been boosting the stock price up for the company.

Harpoon To Boost Cancer Pipeline

A $680 million takeover of Harpoon Therapeutics Inc HARP announced by Merck in 2024 has further helped keep investor momentum up. With the acquisition, Merck intends to beef up its cancer pipeline. Harpoon’s armory of dual-acting immunotherapies targeting lung, abdominal and blood cancers, should help Merck achieve its objective.

Related: Health Care Company Merck & Co Announces Acquisition of Harpoon Therapeutics

Golden Cross Validating Investor Confidence

While business is going strong, technicals are hailing optimism as well.

Merck stock has made a Golden Cross, as can be seen in the chart above. The 50-day SMA has crossed over the 200-day SMA from below. This event is considered a positive signal for a stock or an index.

The Golden Cross is often interpreted as a sign of upward momentum and potential future price appreciation. Traders and investors use this crossover as a bullish indication, suggesting that the stock’s recent upward trend is gaining strength, and it may continue to rise in the near term.

Now Read: Nvidia Surge Echoes Cisco’s 1990s Run – ‘More Upside Before It Crashes… If It Crashes,’ Top Wall Street Analyst Says

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesLarge CapHealth CareTechnicalsTop StoriesSignalsTrading IdeasExpert IdeasKeytrudaStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!