In this piece, we will take a look at the 12 most promising cancer stocks according to analysts. If you want to skip our overview of the latest trends in the cancer treatment sector, then you can take a look at the 5 Most Promising Cancer Stocks According to Analysts.
The advent of technology and advanced manufacturing has disrupted a variety of different industries. One of the biggest examples of this trend is the telecommunications sector. Before Apple Inc. (NASDAQ:AAPL) popularized the smartphone, most of the world's voice connectivity was done through either landlines or bulky satellite phones. Similarly, the rise in Internet performance has also shifted entertainment and news consumption from televisions and newspapers to computers and smartphones.
Another sector that has benefited from technology is medicine. The rise in industrial scale manufacturing and the ability to pump out millions of vaccines and medicines has made the previous century's deadly diseases a mere inconvenience. For instance, diabetes was a life ending disease in 1921 before insulin was invented. Children diagnosed with the disease would have mere weeks to live, and others would have no recourse to living their lives. Now, diabetics can live their lives normally courtesy of advancements in medical science. Similarly, one of the best known antibiotics in the world is penicillin. Penicillin is used to treat a variety of bacterial infections such as pneumonia, and the most widely accepted estimate of its benefit is that the drug has saved at least 200 million lives since its invention.
However, despite the aforementioned advances, there are still numerous diseases that doctors would wish to magically cure. One group of such diseases is cancer - typically classified as a genetic mutation that makes human body cells divide without cause. There are hundreds of cancers, and the disease is one of the hardest to treat because cancer cells often either mutate in response to treatment or go dormant and then return later. There is no surefire treatment for cancer, and treatments typically involve surgically removing the cancer and hoping for the best or simply managing the disease until death.
On the financial front, since there is no definitive treatment for cancer, the market is ripe for the taking. It also means that not only is the market for cancer treatments quite sizeable, but also that it can grow faster than other more mature segments such as generic pharmaceuticals. For instance, research from Precedence Research shows that the global cancer therapeutics market was worth $164 billion in 2022, and it is expected to grow at a compounded annual growth rate (CAGR) of 9.20% to be worth an estimated $393 billion by 2032 end. According to the research firm, some of the factors that will drive the cancer treatment market forward include a growing prevalence of the disease, cooperation between pharmaceutical companies, and an aging global population.
In fact, one of the biggest advances of our modern era, i.e. the COVID-19 vaccine actually owes its existence to cancer treatments. One of the first trials of an mRNA vaccine, which is also the one developed by Pfizer Inc. (NYSE:PFE), BioNTech SE (NASDAQ:BNTX), and Moderna, Inc. (NASDAQ:MRNA) for treating the coronavirus, involved injecting mRNA directly into skin cancer patients. Yet, even as mRNA vaccines are now all the buzz, researchers are busy researching other treatments as well. We took a look at data from clinicaltrials.gov and found that there are 1,628 cancer and tumor treatment trials right now.
Similarly, just as it has disrupted other industries, technology is also making its mark when it comes to treating cancer. One of the biggest, if not the biggest technology trends in 2023 has been artificial intelligence or A.I. On this front, the Israeli oncology intelligence firm Imagene AI made a big announcement in July 2023 with respect to the role of A.I. in researching and developing cancer treatments. The firm shared a research report that studied two patients with lung cancer. The final stage of a cancer diagnosis involves physicians extracting tissue from the body as part of a procedure called a biopsy. However, biopsies are limited since analyzing the tissue often takes a long time. In certain cases, patients require immediate care, and this care cannot be provided unless detailed results of a biopsy are available. Imagene's software and A.I. helped doctors identify genetic mutations before the detailed results were available and helped them improve their treatment.
So, it's clear that there's a bright future ahead for cancer especially when we consider developments over the past couple of years. Therefore, we decided to see which cancer stocks are favored by analysts, and some top picks are Aura Oncology, Inc. (NASDAQ:KURA), Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), and Fate Therapeutics, Inc. (NASDAQ:FATE).
Most Promising Cancer Stocks According to Analysts
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Our Methodology
To make our list of the cancer stocks favored by analysts, we ranked the top 30 constituents of the Range Cancer Therapeutics ETF (CNCR) by their average percentage analyst share price upside. Out of these, the top stocks were chosen.
12 Most Promising Cancer Stocks According to Analysts
Arvinas, Inc. (NASDAQ:ARVN) is a small American biotechnology company headquartered in New Haven, Connecticut. The firm is a rather unique cancer treatment provider as it is developing vaccines that use the body's own anti protein mechanism to fight cancer. The shares are rated Strong Buy on average and analysts have set an average share price target of $58.61.
As of Q3 2023 end, 21 out of the 910 hedge funds profiled by Insider Monkey had bought Arvinas, Inc. (NASDAQ:ARVN)'s shares. The firm's largest investor in our database is Oleg Nodelman's EcoR1 Capital as it owns 5.4 million shares that are worth $107 million.
Along with Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), Aura Oncology, Inc. (NASDAQ:KURA), and Fate Therapeutics, Inc. (NASDAQ:FATE), Arvinas, Inc. (NASDAQ:ARVN) is a favorite cancer stock for analysts.
Kymera Therapeutics, Inc. (NASDAQ:KYMR) is another biotechnology company seeking to use the body's own anti protein processes to fight cancer. The firm scored a win in December 2023 when pharma giant Sanofi paid it $15 million after dosing started in a vaccine trial.
During this year's September quarter, 16 out of the 901 hedge funds part of Insider Monkey's database had held a stake in the company. Kymera Therapeutics, Inc. (NASDAQ:KYMR)'s biggest shareholder among these is Julian Baker and Felix Baker's Baker Bros. Advisors due to its $66 million stake.
HUTCHMED (China) Limited (NASDAQ:HCM) is a Hong Kong based company developing treatments for several cancers such as those involving the lungs and the pancreas. The firm scored a win in November 2023 when Deutsche Bank upgraded the shares to Buy from Hold and kept a $22.10 share price target.
By the end of this year's third quarter, six out of the 910 hedge funds surveyed by Insider Monkey were HUTCHMED (China) Limited (NASDAQ:HCM)'s shareholders. Israel Englander's Millennium Management was the largest investor as it owned $15.8 million worth of shares.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is an American biotechnology company developing treatments for tumors. The firm has beaten analyst EPS estimates in all four of its latest quarters, and analysts have rated the shares as Strong Buy on average. The average share price target is $54.83.
Insider Monkey's September quarter of 2023 survey of 910 hedge funds revealed that 25 had invested in the company. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)'s biggest hedge fund investor is Samuel Isaly's OrbiMed Advisors courtesy of its $91.7 million investment.
Tango Therapeutics, Inc. (NASDAQ:TNGX) is a biotechnology company whose products work with the immune system and its responses to cancer. The firm's shares have been on a tear recently, as they have gained 39% on the market over the past month.
Insider Monkey dug through 910 hedge funds for their September quarter of 2023 investments and found 19 Tango Therapeutics, Inc. (NASDAQ:TNGX) investors.
Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) develops treatments for leukemia and other diseases. December 2023 has been a busy month for the firm, as immediately after sharing positive data from a trial, it was quick to announce a $200 million public offering of its stock.
For their third quarter of 2023 shareholdings, 39 out of the 910 hedge funds covered by Insider Monkey's research had invested in the company. Derrick Tang's Kynam Capital was the largest shareholder due to its $52.2 million stake.
Autolus Therapeutics plc (NASDAQ:AUTL) focuses on developing T cell treatments for lymphoma, myeloma, and other cancers. Its shares are rated Strong Buy on average and analysts have set an average share price target of $8.68.
As Q3 2023 ended, 11 out of the 910 hedge funds part of Insider Monkey's database were Autolus Therapeutics plc (NASDAQ:AUTL)'s shareholders. David Kroin's Deep Track Capital was the biggest investor since it held $34.9 million worth of shares.
Aura Oncology, Inc. (NASDAQ:KURA), Autolus Therapeutics plc (NASDAQ:AUTL), Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), and Fate Therapeutics, Inc. (NASDAQ:FATE) are some top analyst cancer stocks.
