Investor Optimism Around Keytruda Drives Merck Stock To Golden Cross Ahead of Earnings
As Merck & Co Inc (NYSE: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.
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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 (NASDAQ: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.