5 Best Immunotherapy Stocks To Buy Now

In this article, we discuss 5 of the best immunotherapy stocks to buy now. If you want to review our detailed discussion on the cancer and oncology industry, head directly to the 11 Best Immunotherapy Stocks To Buy Now.

5. Bristol-Myers Squibb Company (NYSE:BMY)

Number of Hedge Fund Holders: 66

Bristol-Myers Squibb Company (NYSE:BMY) is a multinational biopharmaceutical corporation engaged in comprehensive activities such as research, development, licensing, manufacturing, marketing, and distribution of biopharmaceutical products. These products are developed to target diverse medical conditions, including hematology, oncology, cardiovascular, immunology, fibrotic, and neuroscience diseases.

On October 9, Bristol-Myers Squibb Company (NYSE:BMY) announced its agreement to acquire Mirati Therapeutics, a targeted oncology biotech company. The deal, anticipated to be finalized by the end of Q1 2024, entails BMY paying $58 per share in cash, amounting to a total value of $4.8 billion. This acquisition will enable Bristol-Myers Squibb Company (NYSE:BMY) to expand its oncology portfolio with targeted therapies like Krazati (adagrasib), a KRAS G12C inhibitor that has received recent approval for the treatment of advanced non-small cell lung cancer patients (NSCLC).

By the end of this year’s second quarter, 66 out of the 910 hedge funds part of Insider Monkey’s research were Bristol-Myers Squibb Company (NYSE:BMY)’s investors. Richard S. Pzena’s Pzena Investment Management is the largest shareholder among these since it owns 4.3 million shares that are worth $277 million.

RGA Investment Advisors made the following comment about Bristol-Myers Squibb Company (NYSE:BMY) in its Q3 2022 investor letter:

“Bristol-Myers Squibb Company (NYSE:BMY), which we referenced above, boasts a double digit free cash flow yield that gets divided roughly equally between repurchases, a dividend and M&A in what is the best environment for acquisitions perhaps ever. In 2019, BMY acquired Celgene, who had one of the better corporate development programs in the industry. We view this as a great outlet for us as generalists considering a company like BMY should truly thrive with the ability to acquire outstanding assets and science at depressed valuations. We touched on the Turning Point acquisition above and we expect the company to be increasingly active in the M&A landscape. Importantly, Celgene also came to BMY with a phenomenal CAR-T platform. CAR-T is a cell therapy that activates the body’s immune system to target cancers. This will be a key growth vector alongside M&A in overcoming the company’s patent cliff.”

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73

Pfizer Inc. (NYSE:PFE), a multinational pharmaceutical and biotechnology company based in New York City, is renowned for its contributions to various medical fields, including immunology, oncology, cardiology, endocrinology, and neurology. In 2022, Pfizer’s standout product was the COVID-19 vaccine Comirnaty, which generated $37.8 billion in alliance revenues and direct sales.

Pfizer has received FDA approval for its vaccine, Penbraya, which protects against five categories of life-threatening bacteria that can lead to conditions such as meningitis and blood poisoning. The company presently offers two vaccines to prevent this disease.

As of the end of Q2 2023, 73 hedge funds in Insider Monkey’s database maintained stakes in Pfizer Inc. (NYSE:PFE), with a combined value exceeding $1.5 billion. Leading the pack in Q2 was Diamond Hill Capital, which held approximately 7 million shares of the company.

Diamond Hill Large Cap Strategy made the following comment about Pfizer Inc. (NYSE:PFE) in its Q2 2023 investor letter:

“Our bottom contributors in Q2 included health insurance company Humana, biopharmaceutical company Pfizer Inc. (NYSE:PFE) and global entertainment company Disney. Pharmaceutical giant Pfizer has been dealing with a decline in sales due to lower COVID vaccination levels. Additionally, in 2023, management is increasing spend as the company invests in new product launches. That said, we remain positive about the long-term company fundamentals.”

3. AbbVie Inc. (NYSE:ABBV)

Number of Hedge Fund Holders: 74

AbbVie Inc. (NYSE:ABBV) is a worldwide pharmaceutical company specializing in pharmaceutical research, development, manufacturing, and distribution. Its diverse product portfolio encompasses Imbruvica, designed for treating blood cancers in adults; Venclexta/Venclyxto, used in the management of hematological malignancies; and Lupron, a treatment for advanced prostate cancer, endometriosis, central precocious puberty, and various pharmaceutical products addressing different medical conditions. With a record of 50 years of continuous dividend growth, the American pharmaceutical giant currently offers a dividend yield of 4.26% as of October 26.

According to Insider Monkey’s second quarter database, 74 hedge funds were bullish on AbbVie Inc. (NYSE:ABBV), compared to 75 in the preceding quarter. Ken Griffin’s Citadel Investment Group is a significant position holder in the company, with over 1.9 million shares worth $260.17 million.

Diamond Hill Large Cap Strategy made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q2 2023 investor letter:

“Also among our bottom contributors were AbbVie and Truist Financial Corp. Pharmaceutical company AbbVie Inc. (NYSE:ABBV)’s stock declined in the quarter due to biosimilar competition against its largest drug, Humira. We believe management is successfully navigating biosimilars, as this has been a known generic entry for years. We still believe the company has attractive long-term prospects despite this near-term headwind.”

2. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 78

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company operating through two primary segments – Pharmaceutical and Animal Health. In its Pharmaceutical segment, the company offers a wide range of human health pharmaceutical products, encompassing oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, diabetes, and vaccines. Notably, Merck & Co., Inc. (NYSE:MRK) is among the top-performing stocks in the field of cancer. On September 22, the company reported promising results from a Phase 3 clinical trial for its anti-PD-1 therapy, Keytruda, used in combination with Seagen Inc. (NASDAQ:SGEN)’s antibody-drug conjugate, Padcev. This combination treatment delivered positive outcomes for patients with bladder cancer.

With an ongoing streak of dividend growth spanning 11 years, Merck & Co., Inc. (NYSE:MRK) provides a quarterly dividend of $0.73 per share, presenting a dividend yield of 2.84% as of October 26.

According to Insider Monkey’s second quarter database, 78 hedge funds were bullish on Merck & Co., Inc. (NYSE:MRK), an increase from 75 funds in the last quarter. Cliff Asness’ AQR Capital Management held the largest position in the company, with approximately 2.91 million shares valued at $331.84 million.

Carillon Eagle Growth & Income Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q2 2023 investor letter:

“Merck & Co., Inc. (NYSE:MRK) presented positive clinical data for a new drug in its oncology pipeline, announced an acquisition that was viewed favorably by investors, and reported strong first-quarter financial results while also increasing its earnings guidance for 2023.”

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ) is a global healthcare company engaged in research, development, manufacturing, and distribution of healthcare products across the world. In its Pharmaceutical segment, the company offers a wide range of products addressing various medical conditions, including prostate cancer, hematologic malignancies, lung cancer, bladder cancer, autoimmune diseases, infectious diseases, mental health disorders, as well as treatments for thrombosis, diabetes, macular degeneration, and pulmonary arterial hypertension. On September 6, Johnson & Johnson’s Janssen division reported a significant milestone with its bispecific antibody Rybrevant, which successfully met the dual primary objective of extending progression-free survival in a Phase 3 clinical trial involving lung cancer patients with specific genetic mutations.

The pharmaceutical division of Johnson & Johnson (NYSE:JNJ) has an impressive track record of maintaining dividend growth for over 62 years. As of October 26, the company offers a quarterly dividend of $1.19 per share, providing a dividend yield of 3.27%.

On October 17, Johnson & Johnson (NYSE:JNJ) announced better-than-expected adjusted earnings and revenue, leading to an increase in its full-year guidance. The strong performance was driven by robust sales in both its pharmaceutical and medical devices divisions. The company also disclosed a net income of $4.31 billion, which equates to $1.69 per share, consistent with the net income of $4.31 billion, or $1.62 per share, reported for the corresponding period in the previous year.

In the second quarter of 2023, the number of hedge funds with holdings in Johnson & Johnson (NYSE:JNJ), as tracked by Insider Monkey, increased to 88, up from 86 in the previous quarter. These hedge funds collectively invested a total value of over $4.1 billion. The largest hedge fund investor in Johnson & Johnson is Bridgewater Associates, managed by Ray Dalio, with a significant stake valued at approximately $526.58 million.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 12 Best Artificial Intelligence (AI) Stocks To Buy According to Hedge Funds and Top 25 Digital Countries in the World.