We recently posted a list of billionaire Ken Fisher's 10 healthcare stock picks with a potential for a massive rise. In this article, we will introduce Merck & Co., Inc. Let's take a look where (NYSE: MRK) plays against other billionaire Ken Fisher's healthcare stock picks.
The healthcare industry, a key component of global well-being and economic resilience, is undergoing major changes. The industry, which is thought to account for more than 10% of the world's GDP, is set to enter a new era characterized by changing demographics, digital innovation and restructuring of regulations. Stakeholders in the ecosystem of life science, diagnostics, and healthcare services are facing challenges as of 2025. Despite the abundant growth opportunities, stability is threatened by continued financial tension, increased operational complexity and geopolitical risks.
US health revenues are still under pressure. According to McKinsey, EBITDA has dropped 150 basis points since 2019 in its share of national health spending, which has had a major impact on both payers and providers. The World Health Organization predicts that by 2030 there will be a shortage of 10 million health workers worldwide, limited reimbursement growth and 10 million shortages in high inflation prices. At the same time, digital conversion has become important. According to Deloitte, 90% of Global Health System executives expect adoption of digital technology to be adopted quickly, with over 70% of them planning to improve operational efficiency in 2025.
Artificial intelligence (AI) is at the heart of this change. Once ambitious, AI is now a disruptive force that improves everything from medical diagnosis to hospital logistics. AI is considered by EU agencies as essential to modernizing public health. The European Health Data Space (EHDS), launched in 2025, and the European Commission's AI Act 2024, aim to ensure that AI technology is reliable, secure and promotes access to high-quality, interoperable health data. These frameworks, along with the revised Product Liability Directive, provide legal protection for patients and developers by simplifying liability standards for defective AI systems.
However, the problem remains. Integrating AI into clinical operations requires consistent funding, cultural acceptance and regulatory clarity. The complexity of data, ethical considerations, and agent AI solutions (a tool that functions autonomously to carry out multi-step healthcare processes) requires careful management. Despite these challenges, practical applications have gained traction. AI is currently used in early sepsis identification, breast cancer screening, and drug R&D, which may shorten the timeline for medication development and improve patient outcomes.
Meanwhile, recent geopolitical developments have cast a shadow over the global healthcare supply network. In April 2025, President Donald Trump announced substantial tariffs, including a 10% baseline and target tax on medical devices that could interrupt access to critical inputs such as diagnostic tools and protective devices. “What Trump announced on Wednesday is stupid, wrong, rog-harmful, not ignorant trade,” billionaire investor Ken Fisher said in a tough indictment of the proposal. Additionally, analysts at Morningstar and Fitch are warning of rising costs for hospitals already dealing with low margins and limited pricing options.
These changes (technical, legislative, geopolitical) are on the backdrop of cautious optimism. Although US GDP growth is projected to fall from 2.7% in 2024 to 1.5% in 2025, the healthcare industry remains strong. Once AI integration deepens, policy clarity arises and investment cycles are reset, the industry may be ready for growth in a new era.
To create a list of billionaire Ken Fisher's 10 healthcare stock picks with a massive potential for a rise, we were able to look into Ken Fisher's fourth quarter 13F SEC filing to find healthcare stocks in his portfolio. Next, at the time of writing, I selected 10 stocks with the highest potential based on the average analyst price forecast. Stocks were then sorted in predicted ascending order. This strategy highlights the most promising healthcare investments in Fisher's existing portfolio. Additionally, hedge fund sentiments for these stocks have also been laid out, like the Insider Monkey Q4 2024 database.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. The quarterly newsletter strategy has chosen 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (see more here).
Merck & Co., Inc. (MRK): Billionaire Kenfisher's healthcare stock pick has the potential for a massive rise
Close-up of a person's hand holding a medicine bottle.
Possibility of upwards: 48.91%
Number of hedge fund holders: 91
Merck & Co., Inc. with distinctive medicines for oncology, vaccines and infectious diseases. (NYSE: MRK) is a global healthcare company involved in both human and animal health. Famous for its innovation-driven pipeline, the company continues its critical R&D investments while negotiating the changing dynamics of global markets.
Merck & Co., Inc. (NYSE:MRK) generated $15.6 billion in total revenue for the fourth quarter. Keytruda sales rose 21% to $7.8 billion due to robust global demand for both metastatic and early stage malignant tumors. Additionally, the company's animal health division reported strong growth of 13%. However, Gardasil's sales fell 18% as shipments to China stopped due to high inventory levels at distribution partner Zhifei. However, Merck is still optimistic about Gardasil's long-term outlook around the world.
The company's core business development is expected to counter Gardasil's challenges in China, with revenue forecasts of $64.1 to $65.6 billion for 2025, and non-GAAP EPS between $8.88 to $9.03. In addition to increased dividends, Merck & Co., Inc. (NYSE:MRK) has increased the share buyback permit to $12 billion, strengthening shareholder returns. In particular, the pipeline includes more than 20 potential blockbusters, including Winrevair, a pulmonary artery hypertension that has been approved in more than 35 countries and has seen initial sales of $200 million.
Following the promising phase III survey results in TGCT patients, Merck & Co., Inc. (NYSE:MRK) has expanded its oncology pipeline by exercising the global commercialization rights of Pimicotinib, a CSF-1R inhibitor created by Abbo Therapeutics on March 31, 2025. Merck's long-term growth outlook will be improved with this $85 million acquisition, expanding its large oncology bench.
Therefore, Merck & Co., Inc. (NYSE: MRK) continues to be a convicted drug investment in Kenfisher's equity portfolio due to its innovation-driven approach, diversified portfolio and dedication to capital discipline.
Overall, MRK ranks second in the list of billionaire Kenfisher's healthcare stock picks. We acknowledge the possibilities of these companies, but our belief lies in the belief that some AI stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you're looking for AI stocks that are more promising than MRK, but are trading at less than five times the revenue, check out this report on the cheapest AI stocks.
Read next: According to the billionaire, buy 20 best AI stocks to buy now and the best best stocks to buy now.
Disclosure: None. This article was originally published on Insider Monkey.
