In this article, we will look at the 10 Best Cancer Stocks to Buy According to Hedge Funds.
Overview of the Global Oncology Sector
Cancer is the second leading cause of death across the globe, second to cardiovascular disease. According to data by the American Cancer Society released in January 2023, the United States was expected to have around 1,958,310 cancer patients by the end of 2023 alone. This reflects a 28% increase from 2010. More than 2 million new cases of cancer were likely to be diagnosed in the US in 2024, with more than 600,000 deaths from the ailment expected in the same year. Like the increasing number of cancer patients, the cost of treating cancer is on an upward trajectory as well. While it cost around $200 billion to treat cancer in the US in 2020, the total expense is anticipated to exceed $245 billion by 2030.
According to the “Oncology Pharmaceuticals Market 2024” report, global funding for cancer research has grown exponentially over the past two decades. The FDA approved 161 new cancer therapies between 2017 and 2022, which reflects the fast pace with which treatment in the field is advancing. These statistics make oncology one of the most comprehensive sectors of the life science space. The oncology sector covers the entire cancer care process, from diagnosis to treatment.
Pharmaceutical and biotech companies around the world are continuously striving to develop more effective cancer treatments. According to Fortune Business Insights, this endeavor is expected to continue increasing in magnitude in the coming future. The global oncology drugs market was valued at around $201.75 billion in 2023. It is anticipated to grow at a compound annual growth rate (CAGR) of 11.3%, going from $220.80 billion in 2024 to $518.25 billion by 2032.
Some of the primary factors driving the growth of the oncology drugs market include the advancements in targeted immunotherapies for cancer care and the increasing prevalence of cancer across the globe. This growth rate makes investment in oncology-related companies a lucrative bet. North America is the most dominant geographical region in the global oncology drugs market. It held a 45.92% market share in 2023.
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Trends in Precision Oncology
The precision oncology market reflects similar trends. The National Institutes of Health (NIH) defines precision oncology as a form of treatment where medical professionals choose treatments by keeping the DNA signature of an individual patient’s tumor in view. Statistics from Grand View Research show that the global precision oncology market size was valued at $115.8 billion in 2024.
It is anticipated to grow at a CAGR of 8.05% between 2025 and 2030. This growth is attributed to the increasing demand for diagnostics products, technological advances, avoiding particular drug resistance, and the increasing minimizing of the side effects of therapies in cancer patients.
AI and Cancer: What’s the Connection?
The adoption of AI in the oncology sector is increasing dramatically. According to a report by Mordor Intelligence, the AI in oncology market size is expected to be around $1.98 billion in 2025, and is anticipated to reach around $9.04 billion by 2030. This reflects growth at a CAGR of 35.51% between 2025 and 2030.
The increasing adoption of AI to diagnose, analyze, and treat complex datasets related to oncology is helping reduce the burden on physicians and hospital infrastructure, streamlining the process. While the largest market for AI in oncology is North America, the fastest-growing sector market is the Asia-Pacific region.
With these trends in view, let’s look at the 10 best cancer stocks to buy according to hedge funds.
A closeup of pills in a pharmacy, representing the high quality medications of the company.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 30 cancer stocks. We then selected the top 10 stocks most popular among elite hedge funds. We sourced hedge fund data from Insider Monkey’s database. The stocks are sorted in ascending order of the number of hedge fund holders that have stakes in them as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Cancer Stocks to Buy According to Hedge Funds
10. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 62
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a pharmaceutical company that develops, discovers, and commercializes therapies for a number of diseases, including cancer, eye disorders, and allergic conditions. The company is advancing around 40 of its programs. It has relied on two primary products to drive top-line growth in the past years: Dupixent and Eylea. Dupixent is an eczema treatment whose rights Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) shares with Sanofi. Eylea, which Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) comarkets with Bayer, treats wet age-related macular generation.
While the company’s products are under pressure due to competition, analysts believe Regeneron Pharmaceuticals, Inc.’s (NASDAQ:REGN) stock could grow by 50% from its current levels in the next year. Dupixent is expected to continue being a growth driver for the company, as its total global revenue increased by 23% year over year to $3.82 billion in fiscal Q3 2024.
Dupixent also attained FDA’s approval to treat Chronic Obstructive Pulmonary Disease (COPD) in September, indicating that it may add several billion dollars in annual sales in the coming years. In addition, the company’s cancer medicine Libtayo brought in $289 million in sales in fiscal Q3 2024, up 24% compared to the year-ago period. This drug is also anticipated to maintain strong growth for the company in the coming years. It ranks tenth on our list.
9. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 63
Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells healthcare products. Its business segments include Diagnostic Products, Established Pharmaceutical Products, Medical Devices, and Nutritional Products. The company’s Abbott Molecular is a leader in oncology molecular diagnostics with its Vysis FISH assays.
Abbott Laboratories (NYSE:ABT) offers an array of assays to assist in the diagnosis, risk stratification, and management of various kinds of cancers. Its 300-plus Vysis DNA FISH probes are specially designed for breast, hematology, bladder, lung, and other solid tumors. The company generated $8.5 billion in operating cash flow in fiscal Q4 2024, which it used to reinvest in its business by repaying debts, funding capacity expansions, and returning $5 billion to shareholders through share repurchases and dividends.
Its innovative abilities, diversified business, and expertise in the industry give Abbott Laboratories (NYSE:ABT) a competitive market edge, allowing it to perform well in the long run. It is well positioned to deliver strong growth in fiscal 2025, and forecasts organic sales growth in the 7.5% to 8.5% range. Abbott Laboratories (NYSE:ABT) ranks ninth on our list of the 10 best cancer stocks to buy according to hedge funds.
