Recently, we released a list of stocks that Jim Cramer has highlighted. This article examines Merck & Co., Inc. (NYSE:MRK) in relation to the other stocks Cramer has discussed recently.
On Monday, Jim Cramer, the host of Mad Money, shared his insights on the significance of the government’s tariff policies in maintaining the stock market rally. Cramer expressed his approval of the current policy direction.
“There’s what happened two weeks ago, specifically two Thursdays ago when the stock market officially entered correction mode. Until that breakdown, I believed the president was more than willing to challenge anyone to get what he wanted.”
Cramer noted, “I don’t think he (President Donald Trump) aims to punish strong American companies that produce locally.”
He elaborated that he no longer perceives the president as a threat to U.S. companies that manufacture goods in the country. Cramer indicated that this change in perspective is a relatively recent development and might indicate a more sophisticated approach going forward. He mentioned that, with the market on the mend, discussions surrounding protectionist tariffs could arise again, albeit from a different context.
Cramer speculated that the president may have adjusted his stance after witnessing the adverse effects of a market correction on reputable American companies, influenced by various advisors.
“The bottom line: America is the only nation that has played fair on trade. Every other country bends the rules to safeguard their domestic markets. This has devastates our industrial heartland, and this situation can only shift if our government adopts a balanced approach. If Trump moderates his stance, this could facilitate a significant market rally.”
Our Methodology
In this article, we compiled a selection of 10 stocks that were mentioned by Jim Cramer during the March 24 episode of Mad Money. We arranged these stocks according to their hedge fund sentiment as of Q4 2024, sourced from Insider Monkey’s database of over 1,000 hedge funds.
Why are we focusing on stocks that hedge funds are accumulating? The reason is straightforward: our studies suggest that mirroring the top picks of elite hedge funds can lead to market outperformance. Our quarterly newsletter employs a strategy that selects 14 small-cap and large-cap stocks each quarter, boasting a total return of 373.4% since May 2014, which surpasses the benchmark by 218 percentage points (see more details here).
Story Continues
Jim Cramer on Merck (MRK): “I Like It at This Level – But I Prefer Bristol-Myers Even More!”
A close-up of a person’s hand holding a bottle of pharmaceuticals.
Merck & Co., Inc. (NYSE: MRK)
Number of Hedge Fund Holders: 91
A caller inquired about buying more Merck & Co., Inc. (NYSE:MRK) due to the stock’s recent decline. Cramer responded:
“Merck is in good hands with Rob Davis. They are currently reliant on Keytruda as their key drug. I’ll say something that might get me in trouble: I like Merck at this level, but I must admit, I favor Bristol-Myers, BMY, even more. I find it much more attractive, especially with their promising schizophrenia drug.”
Merck (NYSE:MRK) is a renowned global healthcare company focused on researching, developing, and marketing a diverse array of pharmaceutical products. During his appearance on Squawk on the Street on February 19, Cramer remarked:
“Although Merck has been considerably sluggish, the stock’s performance has been exceptionally poor. This company, distinguished from its name, has been negatively impacted by the Chinese government’s refusal to administer GARDASIL to their population. Some of this is attributable to a wholesaler that can no longer supply it due to financial constraints. This stock used to be considered ‘Saint Merck.’ Though it may not exhibit high growth potential anymore, it’s worth considering, especially since it’s trading unfavorably.”
Overall, MRK ranks second on our list of stocks that Jim Cramer has discussed of late. While we recognize MRK’s investment potential, we firmly believe that AI stocks present greater opportunities for yielding higher returns in a shorter span. If you seek an AI stock that holds more promise than MRK and trades at under five times earnings, refer to our report on the most affordable AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article was initially published by Insider Monkey.
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Exelixis Stock Rises 13.3% Year to Date: Buy, Sell or Hold?
Zacks Equity Research
Thu, March 27, 2025, at 2:00 AM GMT+7 5 min read
In This Article:
EXEL
-1.86%
Exelixis, Inc. (EXEL) shares have increased 13.3% year-to-date, surpassing the industry’s growth of 6.6%. The stock has outperformed the sector and the S&P 500 Index during this period.
The company’s positive performance is attributed to robust quarterly results, increased guidance, and efforts to enhance shareholders’ returns.
EXEL Outperforms Industry, Sector & S&P 500
Zacks Investment Research
Image Source: Zacks Investment Research
Last month, Exelixis announced a $500 million share repurchase program, which triggered a stock rally post-announcement. Earlier, the company reported better-than-expected fourth-quarter results, further boosting the stock’s value.
Let’s take a closer look at the company’s strengths and weaknesses to navigate this stock landscape.
Cabometyx Drives EXEL
Exelixis’ primary drug, Cabometyx, continues to lead as the premier tyrosine kinase inhibitor (TKI) for treating renal cell carcinoma (RCC) in both the frontline immuno-oncology (IO) +TKI market and in second-line monotherapy.
Additionally, Cabometyx has received approval for use in combination with Bristol Myers’ BMY Opdivo in the first-line setting for RCC. Opdivo remains one of the top IO drugs with various approved oncology uses.
Management is concentrating on expanding the indications for Cabometyx. The FDA accepted Exelixis’ supplemental new drug application for cabozantinib in patients with previously treated advanced pancreatic neuroendocrine tumors (pNET) and treated advanced extra-pancreatic NET (epNET). The FDA has also granted orphan drug designation for cabozantinib in treating pNET, with a target action deadline of April 3, 2025.
Encouraging Pipeline Developments at EXEL
Progress in the pipeline has been significant as Exelixis aims to broaden its oncology portfolio beyond Cabometyx.
The company is developing zanzalintinib, a next-generation oral TKI. In January 2025, results from a phase Ib/II STELLAR-001 study showed that zanzalintinib, either alone or combined with Tecentriq (atezolizumab), yielded favorable efficacy metrics in patients with previously treated metastatic colorectal cancer (CRC), particularly in patients without liver metastases.
These findings bolster zanzalintinib’s ongoing pivotal development in metastatic CRC.
In collaboration with Merck MRK, Exelixis is conducting a late-stage study evaluating zanzalintinib combined with Keytruda (pembrolizumab) for head and neck squamous cell carcinoma (HNSCC).
Per the agreement, Merck will provide Keytruda for the Exelixis-sponsored phase III STELLAR-305 trial in newly untreated PD-L1-positive recurrent or metastatic HNSCC.
Merck will also finance a phase I/II study alongside two phase III studies assessing zanzalintinib with Welireg, an oral hypoxia-inducible factor-2 alpha (HIF-2α) inhibitor, in RCC. MRK is funding one of these studies, while Exelixis will co-finance the other trials and provide zanzalintinib and cabozantinib.
Exelixis is also advancing several additional pipeline candidates, including XL495, XL309 (a possible best-in-class small molecule inhibitor of USP1), and XB010 (5T4-targeting antibody-drug conjugate).
Additionally, three biotherapeutics programs are planned for clinical development in 2025, with the aim to file investigational new drug applications if preclinical data remains supportive.
Successfully developing more drugs could extend Exelixis’ portfolio and lessen reliance on Cabometyx.
Efforts by Exelixis to Enhance Shareholder Value
Exelixis continues to enhance shareholder value through stock buybacks. On February 20, the board of directors approved an additional $500 million of common stock buybacks before December 31, 2025—a fourth such program since March 2023.
Exelixis plans to complete its ongoing $500 million buyback program (initiated in August 2024) by the second quarter of 2025, with the new repurchase program beginning afterward.
As a result of these buybacks, Exelixis has returned over $1.2 billion to shareholders through these initiatives by the end of 2024.
Stay Invested in EXEL
Major biotechnology firms are typically viewed as stable options for investors in this sector. Exelixis’ lead drug, Cabometyx, remains strong as well. The anticipated label expansion for Cabometyx may further enhance growth prospects. The company’s strategy to diversify its portfolio is promising as well, as the development of new drugs could diminish dependence on the flagship product.
While Exelixis’ commitment to augmenting shareholder value is commendable, the recent stock performance may limit future gain potential.
Thus, we advise current investors to remain invested in the stock, given management’s initiatives to enhance value. However, potential investors should wait for more favorable entry points.