Why Merck Stock Flew Higher on Friday

The positive sentiment engendered by Merck's (NYSE:MRK) solid third-quarter results posted on Thursday carried over into the following trading session. It wasn't only the vibes; several analysts tracking the durable pharmaceutical company raised their price targets on its equity. The stock climbed more than 2% as a result, in contrast to the S&P 500 index's relatively steep decline of 1.8%.

Investors found plenty to like about Merck's quarterly figures. Total sales grew by 5% to over $18 billion, predictably driven by its blockbuster cancer drug Keytruda. Net income not under generally accepted accounting principles (non-GAAP, or adjusted) fell by 4%, but the metric was still well in the billions at nearly $6.2 billion.

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