10 Best Immunotherapy Stocks to Buy Now

5. Illumina, Inc. (NASDAQ:ILMN)

Number of Hedge Fund Holders: 56

Illumina, Inc. (NASDAQ:ILMN) is a leading genomics company that provides advanced tools for analyzing DNA and RNA. Illumina, Inc. (NASDAQ:ILMN)  plays a key role in advancing immunotherapy research, particularly through its next-generation sequencing (NGS) technologies. These tools help scientists study the mechanisms by which tumors evade the immune system and identify therapeutic targets that could boost immune responses against cancer.

Wall Street analysts and investors are optimistic about Illumina, Inc.’s (NASDAQ:ILMN) future, especially after the Grail spin-off in 2024 and the acquisition of Fluent Biosciences to improve its single-cell analysis and multiomics capabilities.

In Q2, Illumina exceeded expectations, achieving Core Illumina revenue of $1.1 billion and operating margins of 22.2%, supported by steady progress on its strategic goals. The stock has received a consensus rating of “Moderate Buy.”

Here’s what Patient Capital Management said about Illumina, Inc. (NASDAQ:ILMN) in its Q2 2024 investor letter:

“Illumina, Inc. (NASDAQ:ILMN) is a good example. We entered the name late last year as the company began to trade at a 5-yr low. The company is a leader in the genomic sequencing space but made an ill-advised acquisition of Grail, a blood-based multi-cancer early detection product, in 2021 for $8B dollars. Grail was an annual ~$600m drag on profitability hitting the financials at the same time that competition began to pick up and the overall demand environment began to weaken. Despite increased competition in the genome sequencing space, Illumina continues to be a leader with ~80% market share today. With the successful separation of Grail Inc. (GRAL) in June, Illumina has now returned to a pure-play sequencing company. As the company returns to historical profitability post Grail spin-off and as the demand environment normalizes post COVID, we believe you can buy a market leader in a secularly growing industry for less than a market multiple.”