Merck & Co. Inc. (MRK) shares surged 5.03% in Tuesday's trading session, outperforming the broader market as the Dow Jones Industrial Average rallied. The pharmaceutical giant's stock was one of the top contributors to the Dow's impressive gains, which saw the index climb over 600 points.

The rally in Merck's stock can be attributed to several factors. Firstly, Jefferies analyst Tycho Peterson reaffirmed a Buy rating on Merck with a price target of $139.00, signaling continued confidence in the company's prospects. Additionally, investors appear to be optimistic about Merck's potential in the lucrative weight-loss drug market. The company recently signed a licensing deal worth up to $2 billion for an experimental oral drug to treat obesity, positioning itself as a contender in this rapidly growing sector.

Merck's advancement in the obesity treatment space comes at a time when the weight-loss drug market is projected to reach $150 billion by the next decade. As competition heats up among pharmaceutical companies to develop effective obesity treatments, Merck's entry into this field could represent a significant growth opportunity. The company's strong performance on Tuesday reflects investor enthusiasm for its diversified portfolio and potential for future revenue streams in the highly sought-after weight-loss segment.