5 Most Promising Cancer Stocks According to Analysts

In this article, we discuss 5 most promising cancer stocks according to analysts. If you want to see more stocks in this selection, check out 11 Most Promising Cancer Stocks According to Analysts. 

5. BeiGene, Ltd. (NASDAQ:BGNE)

Number of Hedge Fund Holders: 15

Average Price Target Based on Analyst Ratings: 46.64% 

BeiGene, Ltd. (NASDAQ:BGNE) is a Massachusetts-based biotechnology company that focuses on discovering, developing, and commercializing medicines worldwide. The company has a portfolio of medicines for colorectal cancer, liver cancer, non-small cell lung cancer, endometrial cancer, solid and hematological cancers, breast cancer, and gastric cancer, among others. BeiGene, Ltd. (NASDAQ:BGNE) announced that cash, cash equivalents, restricted cash, and short-term investments were $4.5 billion as of December 31, 2022, compared to $6.6 billion as of December 31, 2021.

On January 20, Guggenheim analyst Michael Schmidt raised the firm’s price target on BeiGene, Ltd. (NASDAQ:BGNE) to $350 from $290 and kept a Buy rating on the shares. This is in response to the announcement by the company that the FDA has approved Brukinsa for the treatment of chronic lymphocytic leukemia or small lymphocytic lymphoma in adult patients, the analyst told investors. 

According to Insider Monkey’s fourth quarter database, 15 hedge funds were long BeiGene, Ltd. (NASDAQ:BGNE), compared to 18 funds in the prior quarter. Julian Baker and Felix Baker’s Baker Bros. Advisors is the largest stakeholder of the company, with 11.6 million shares worth $2.5 billion. 

Here is what Longleaf Partners Asia Pacific UCITS Fund has to say about BeiGene, Ltd. (NASDAQ:BGNE) in its Q1 2022 investor letter:

“One company that we do not hold, but that serves as a good example of corrective action, is BeiGene (NASDAQ:BGNE). The company recently switched auditors to Ernst & Young USA from Ernst & Young China for its US Securities and Exchange Commission (SEC) audit reports to avoid a delisting in the US.”

4. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 52

Average Price Target Based on Analyst Ratings: 61.58%

Moderna, Inc. (NASDAQ:MRNA) is a Massachusetts-based biotechnology company that develops and commercializes messenger RNA therapeutics and vaccines for the treatment of infectious diseases, immuno-oncology, rare diseases, autoimmune, and cardiovascular diseases in the United States, Europe, and internationally. It is one of the most promising cancer stocks to buy according to analysts. The company reported a Q4 revenue of $5.1 billion, beating market estimates by $80 million. 

On February 24, SVB Securities analyst Mani Foroohar downgraded Moderna, Inc. (NASDAQ:MRNA) to Underperform from Market Perform with a $93 price target.

According to Insider Monkey’s fourth quarter database, 52 hedge funds were bullish on Moderna, Inc. (NASDAQ:MRNA), compared to 44 funds in the prior quarter. Philippe Laffont’s Coatue Management held the leading stake in the company, with 6.3 million shares worth $1.14 billion. 

ClearBridge Select Strategy made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q4 2022 investor letter:

“Moderna, Inc. (NASDAQ:MRNA) became a household name during the pandemic as one of the first developers of a COVID-19 vaccine. But the stock sold off sharply as COVID momentum, including high expectations for booster shots, began to wear off, causing investors to slash its fiscal 2023 earnings estimates by two-thirds over the last year. We believe those downward revisions clouded the prospects for the company’s fully funded pipeline of platform opportunities, including cancer, RSV and flu. The cash-rich company also recently expanded its partnership with Merck to improve cancer treatments.”

3. Guardant Health, Inc. (NASDAQ:GH)

Number of Hedge Fund Holders: 34

Average Price Target Based on Analyst Ratings: 82.13% 

Guardant Health, Inc. (NASDAQ:GH) is a California-based precision oncology company that provides blood tests, data sets, and analytics in the United States and internationally. On February 23, Guardant Health, Inc. (NASDAQ:GH) reported revenue for the fourth quarter of 2022, which came in at $126.9 million, up 17.4% year-over-year and beating market estimates by $2.97 million. It is one of the most promising cancer stocks as per Wall Street analysts. 

On February 27, Morgan Stanley maintained an Overweight rating on Guardant Health, Inc. (NASDAQ:GH) but reduced the price target on the shares from $73 to $66. Although the guidance provided by the company was slightly below recent estimates, this was expected and Morgan Stanley believes that it is not the right time to give up on the stock. The firm believes that there are multiple areas of conservatism in the outlook and the stock is attractively valued, which makes it a compelling risk/reward opportunity.

According to Insider Monkey’s Q4 data, 34 hedge funds were long Guardant Health, Inc. (NASDAQ:GH), compared to 33 funds in the prior quarter. Andreas Halvorsen’s Viking Global is one of the biggest stakeholders of the company. 

ClearBridge Multi Cap Growth Strategy made the following comment about Guardant Health, Inc. (NASDAQ:GH) in its Q4 2022 investor letter:

“Guardant Health, Inc. (NASDAQ:GH), a disruptor within health care that is developing blood tests for cancer screening, announced a mixed readout for its Eclipse screening test that raised concerns about how much market share the product will eventually garner. The company will likely need to raise capital over the next couple of years, which has also weighed on the stock. We believe the issues facing both Wolfspeed and Guardant are temporary and we continue to maintain our weightings in both.”

2. Puma Biotechnology, Inc. (NASDAQ:PBYI)

Number of Hedge Fund Holders: 14

Average Price Target Based on Analyst Ratings: 100.25%

Puma Biotechnology, Inc. (NASDAQ:PBYI) was founded in 2010 and is headquartered in Los Angeles, California. It is a biopharmaceutical company, focused on the development and commercialization of products to improve cancer care in the United States and internationally. It is one of the most promising cancer stocks, with an average target upside potential of over 100%. 

On August 5, H.C. Wainwright analyst Edward White reiterated a Buy recommendation on Puma Biotechnology, Inc. (NASDAQ:PBYI) but lowered the firm’s price target on the shares to $8 from $12. 

According to Insider Monkey’s fourth quarter database, 14 hedge funds were bullish on Puma Biotechnology, Inc. (NASDAQ:PBYI), compared to 13 funds in the prior quarter. Kamran Moghtaderi’s Eversept Partners is the biggest position holder in the company, with 1.50 million shares worth $6.3 million. 

1. AstraZeneca PLC (NASDAQ:AZN)

Number of Hedge Fund Holders: 42

Average Price Target Based on Analyst Ratings: 104.65%

AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company, focused on the discovery, development, and distribution of prescription medicines. The company’s marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, and Zoladex for oncology. It is one of the most promising cancer stocks according to analysts. AstraZeneca PLC (NASDAQ:AZN) expects FY 2023 total revenue to increase by a low-to-mid single-digit percentage. 

On February 21, UBS analyst Michael Leuchten raised the firm’s price target on AstraZeneca PLC (NASDAQ:AZN) to 11,900 GBp from 10,100 GBp and reiterated a Neutral rating on the shares.

According to Insider Monkey’s Q4 data, 42 hedge funds were bullish on AstraZeneca PLC (NASDAQ:AZN)AstraZeneca PLC (NASDAQ:AZN), compared to 44 funds in the preceding quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with more than 17 million shares worth $1.16 billion. 

Baron Funds made the following comment about AstraZeneca PLC (NASDAQ:AZN) in its Q4 2022 investor letter:

“Favorable stock selection in pharmaceuticals, owing mostly to the outperformance of AstraZeneca PLC (NASDAQ:AZN). AstraZeneca was the third largest contributor after benefiting from incremental positive news flow surrounding the company’s oncology franchise at medical meetings

AstraZeneca PLC is a global pharmaceutical company focused on oncology, respiratory, cardiovascular, and metabolism drugs. Shares increased given incremental positive news flow surrounding the oncology franchise at medical meetings and some mean reversion after lagging in the prior quarter. We retain conviction in AstraZeneca given its best-in-class growth profile among its pharmaceutical peers combined with its strong pipeline and commercial launch characteristics. We highlight Enhertu and Dato-Dxd as two new exciting near-term drug opportunities.”

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