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Merck & Co., Inc. (NYSE:MRK) was among Jim Cramer’s stock calls as he suggested that many red-hot stocks can keep making investors money. A caller asked whether they should stick with the stock or switch to another one. Cramer replied:

Okay, I’ve gotta tell you, this rotation out of healthcare is one of the most breathtaking rotations. We could be talking about a half dozen drug stocks, and they would all be the same. I think that Merck is at 13 times earnings. I think Merck is terrific. I don’t think that matters at all. I think the stock could drop another five, so you want to buy some and then leave, I like to say leave room. Hey, maybe divide by 10. It’s an $11 stock. Maybe it goes to 10 and a half.

Photo by Adam Nowakowski on Unsplash

Merck & Co., Inc. (NYSE:MRK) is a healthcare company that provides a wide range of human and veterinary pharmaceuticals, vaccines, and health solutions. TCW Relative Value Large Cap Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its fourth quarter 2025 investor letter:

The best performing stocks in the quarter were Alphabet†, Intel (INTC; 2.69%**), and Merck & Co., Inc. (NYSE:MRK) (MRK; 2.70%**). Merck & Co. shares jumped after the company reported better than expected third quarter revenues. Management attributed the beat to cost cutting initiatives and strong sales of its pneumonia vaccine.

While we acknowledge the potential of MRK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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