10 Best Cancer Stocks to Buy According to Hedge Funds

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1. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 106

Eli Lilly & Co. (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. Its products span oncology, diabetes, immunology, neuroscience, and other therapies. The company is one of the best stocks to buy in the pharmaceutical industry, and management expects a 32% revenue growth in fiscal 2025.

It has a solid oncology segment, weight loss therapies, and medications approved for eczema and Alzheimer’s disease that are anticipated to improve the company’s fundamentals. In fiscal Q3 2024, the company grew its sales by 20% to $11.4 billion. Several of its products generated more than $1 billion in revenue, including Zepbound ($1.3 billion) and Mounjaro ($3.1 billion), its top GLP-1 drugs. Strong US demand for these two drugs caused a 42% surge in the company’s revenue in fiscal Q3 2024.

Investors are thus bullish on Eli Lilly & Co. (NYSE:LLY) due to its in-demand GLP-1 drugs, which are still in their early growth stages, and the company’s strong financials. Zepbound was approved as a treatment for moderate to severe sleep apnea last year, which is a significant milestone for the company and is expected to be a catalyst for more revenue growth for Eli Lilly & Co. (NYSE:LLY) in the near future.

Overall, LLY ranks first among the 10 best cancer stocks to buy according to hedge funds. While we acknowledge the potential of cancer stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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