2 Stocks Down 13% and 34% to Buy Right Now

All things considered, broader equities have performed pretty well in 2025, with the S&P 500 up 14% since the beginning of the year. It seems so long ago that the index flirted with bear-market territory amid tariff threats and other factors. Even in the midst of this strong performance, though, plenty of quality stocks can be had on the dip.

Let's consider two of them: Merck (NYSE: MRK) and Fiverr International (NYSE: FVRR). These two corporations are down by 13% and 34% this year, respectively, but they could be long-term winners for those who buy and hold their shares. Let me explain.

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1. Merck

Merck has struggled this year as two of its most important growth drivers are facing (or will encounter) challenges in the near to medium term. First is Keytruda, a cancer medicine that is its current best-seller. The therapy will face increased competition from newer approvals, and from biosimilars following a patent cliff in 2028. Then there's Merck's HPV vaccine franchise, Gardasil and Gardasil 9, whose sales have been declining due to lower demand in China and Japan. However, Merck is well-equipped to deal with these issues.

For now, Keytruda's empire is holding strong, with third-quarter sales of $8.1 billion, up 10% year over year. One of the medicine's key strengths is its approval across more than 40 indications. And even though the current intravenous formulation of Keytruda will soon lose patent exclusivity, Merck has received approval for a subcutaneous version whose patent won't expire at the same time. So the therapy still has many years of decent sales, even as biosimilars enter the market.

Elsewhere, Merck has made progress with newer approvals. Winrevair, a medicine for pulmonary arterial hypertension, launched last year; it recorded revenue of $360 million in the third quarter, putting it at an annual run rate of more than $1 billion. Capvaxive, a pneumococcal vaccine that also earned the green light last year, reported sales of $244 million for the period.

So, despite Gardasil and Gardasil 9 revenue declining significantly during the period, total sales inched up 4% to $17.3 million. Over the medium to long term, we can expect the company's newer medicines to continue gaining traction, while it will earn plenty more clinical and regulatory wins and replace even Keytruda.

Merck has a vast pipeline with more than 80 active clinical trials. And that's before we consider the company's animal health business. Sales in that department grew 9% year over year to $1.6 billion in the third quarter. It could be another tailwind in the long run, driven by increased pet-related spending.

Finally, Merck is a terrific dividend stock with a juicy 3.8% forward yield -- compared to the S&P 500's average of 1.2% -- and an 84.7% dividend increase over the past decade. The stock could eventually bounce back and deliver superior returns to those who initiate positions today.

2. Fiverr

Fiverr has lost significant traction and market value since its pandemic highs. The company's platform, which helps connect businesses with skilled freelancers, isn't seeing as much activity as it did a few years ago. Even so, there are strong reasons to consider the stock.

First, Fiverr could win over the long run as it helps power the gig economy, which is growing due to the convenience it offers both companies and freelancers. One thing the pandemic taught many people is that they don't need to be tethered to an office. Fiverr allows people seeking flexibility in their work arrangements to access many more opportunities than they might otherwise. For businesses, it's cheaper, easier, and faster to hire freelancers than to hire full-time employees.

Second, Fiverr has made tremendous progress in recent years, especially on the bottom line. In the third quarter, revenue grew 8.3% year over year to $107.9 million. Net earnings per share were $0.15, compared to the $0.04 reported in the prior-year quarter.

Third, Fiverr could benefit from the revolution in artificial intelligence (AI). As it continues to transform the world, smaller businesses want a piece of the technology, but many don't have the budget to hire a talented team of AI experts. Turning to Fiverr for AI-focused freelancers is a decent option in these circumstances. The company has said that demand for AI services has helped push its financial results in the right direction.

And there should be plenty more where that came from as the AI industry continues to expand and demand for services grows. Fiverr is looking at sizable growth opportunities in this field and others. Though the stock is down 34% this year, it could recover over the long run and handsomely reward shareholders along the way.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International and Merck. The Motley Fool has a disclosure policy.