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Imagine yourself as a passive income investor looking for a medical stock with significant share growth potential. Wall Street analysts with JP Morgan, Citi, and Evercore ISI would recommend looking at Merck & Co (NYSE: MRK), which they've all given a "buy" rating. It may also have as much as 82% upside. Keep reading to learn why this medical stock could be right up your alley.

Merck is one of the world's leading pharmaceutical companies. The company's primary focus is developing vaccines, prescription drugs, and veterinary medications. The company's most recognizable, and profitable, medication is Keytruda, which can be used to treat a variety of cancers including melanoma, lung cancer, and bladder cancer. Merck's Q4 2024 and year-end earnings report showed global Keytruda sales generated $29.5 billion, an 18% increase over 2023.

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Gardasil/Gardasil-9, a vaccine for human papillomavirus, is another one of Merck's leading medications. It generated $8.6 billion in global sales for 2024. Merck also retains a very active and well-funded R&D division and spent $17.9 billion on this department last year. That keeps the company primed and ready to bring new medications to market.

One example is Winrevair, which is designed to fight adult pulmonary-arterial hypertension. The FDA cleared Winrevair for use in March 2023 and it has already generated $419 million in global sales. The company also beat Wall Street's consensus expectations by $117 million thanks to $15.6 billion in global revenue for Q4 2024. Merck's $64.2 billion in total sales for 2024 was 7% more than the 2023 total.

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Merck's adjusted earnings per share in 2024 of $7.65 was a drastic improvement over 2023's $1.51. Despite these positive metrics, Merck stock is down about 9% for the year, a falloff likely caused by the company's guarded optimism about its 2025 projections. However, that stock price drop also creates significant upside for investors, and many analysts believe Merck is underpriced.

A recent profile of Merck by Barchart showed that 18 of the 25 analysts offering opinions have given the company a "strong-buy" rating. Their average price target for Merck was $122.55. The most bullish projection for Merck's stock price from Barchart analysts sees the company stock reaching $168. That means Merck could have up to 82% upside on the current $92.25 share price.

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Many analysts believe that Merck might be underpriced and that could be an opportunity for investors. Benzinga compiled 27 analysts' coverage of Merck and their consensus price expectation is $122.38, with a high of $155 set by Cantor Fitzgerald last October. The good news is that you'll still have the opportunity to earn passive income while you hold this stock.

Merck is also a dividend stock and Benzinga's latest estimates have it paying 3.58%, which is a respectable $3.30 per share. That's not a bad potential return for a stock that could have room to become much more valuable as 2025 progresses. Merck may be down at the moment, but it's not out.

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This article Wall Street Analysts Think This Medical Dividend Stock Could Have Massive 82% Upside originally appeared on Benzinga.com