In this article, we will look at the 12 Best Immunotherapy Stocks to Buy According to Hedge Funds.
On February 13, Matt Orton, Raymond James Investment Management’s chief market strategist, appeared on CNBC’s ‘The Exchange’ to talk about the recent trends in equity markets and what may drive stocks higher.
He thinks it is time to be more specific with respect to where the market is; one should be particular about the stocks and sectors one wants to lean into. The rotation that has played out this year has been “pretty extreme”, according to Orton, with almost a 27% difference between top- and bottom-performing sectors within the S&P 500 just this year, which amounts to a month and a half. So we need to look at the intersection of where we have fundamental support for the cyclical rotation, which translates to earnings growth and economic growth, along with where there are still some secular tailwinds to make sure that a lot of these themes play out over the longer term.
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Orton further stated that this is not really a risk-off market but is rather a rotation, and that traditionally risk-on areas such as small caps and emerging markets are outperforming year-to-date. The overall backdrop, thus, remains very constructive for equities with stimulative tailwinds. We also talked about healthcare stocks in a recently published article on the 12 Best Healthcare Stocks Under $50 to Invest In. Here is an excerpt from the article:
“On January 27, Jared Holz, healthcare equity strategist at Mizuho, appeared on CNBC’s ‘Power Lunch’ to talk about healthcare stocks and the new proposals around Medicare Advantage. CNBC reported that the Trump administration proposed basically no change for most Medicare Advantage payments, as the plan called for a net average payment increase of a mere 0.09% next year, which appears to be an insignificant number and well below Wall Street’s expectations. This translates to major insurers, which get paid back by Medicare Advantage, getting “pummeled”.
Talking about whether the healthcare space has become uninvestable after the proposal or poses a big opportunity to buy the dip, Holz provided an investing perspective, stating that this has certainly been a “precarious” place to invest in the past couple of years. He added that this is presently just a proposal, and the final ruling is supposed to take place in a couple of months from now, in April. The edited or revised ruling may be a little bit better, according to him.
Holz further stated that this has overall been a shock to the system, and investors had been positioning long, thinking that this was going to be a turnaround year. He thinks that the earnings and headlines delayed the dream for a little bit. However, the dream completely ending instead of being delayed seems a bit severe to him, as he believes we are going to be in a pocket now, for a year or maybe two, in which earnings don’t expand or grow as much as investors or the Street had thought. Ending the dream seems draconian to him, but he also stated that in a world where so many other stocks and subsectors are working incredibly well, this is going to be a tough one for a bit.”
With these broader market trends in view, let’s look at the best immunotherapy stocks to buy according to hedge funds.
Our Methodology
We used stock screeners to find the best immunotherapy stocks and then chose the top 12 with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on February 17.
Why are we interested in the stocks that hedge funds pile into? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Best Immunotherapy Stocks to Buy According to Hedge Funds
12. Iovance Biotherapeutics Inc. (NASDAQ:IOVA)
Number of Hedge Fund Holders: 27
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) is one of the best immunotherapy stocks to buy according to hedge funds. On February 5, Goldman Sachs lifted the price target on Iovance Biotherapeutics Inc. (NASDAQ:IOVA) to $2 from $1.50 while maintaining a Sell rating on the stock.
The rating update came the same day Iovance Biotherapeutics Inc. (NASDAQ:IOVA) announced data showing a best-in-class profile for commercial Amtagvi with unprecedented response rates in a real-world clinical, retrospective study conducted in patients with advanced melanoma. It announced the real-world results at the 2026 Tandem Meetings of the American Society for Transplantation and Cellular Therapy and the Center for International Blood and Marrow Transplant Research in Salt Lake City, UT.
Management stated that Amtagvi is the first one-time T cell therapy for a solid tumor cancer, and also holds the spot as the only FDA-approved treatment for advanced melanoma patients previously treated with anti-PD-1 and targeted therapy, where applicable.
Iovance Biotherapeutics Inc. (NASDAQ:IOVA) further reported that forty-one evaluable patients with previously treated advanced melanoma received commercial Amtagvi as per the U.S. prescribing information at four authorized treatment centers, adding that the physician-assessed confirmed objective response rate was 44% and the disease control rate was 73%, with the response rate being higher with earlier Amtagvi treatment.
Iovance Biotherapeutics (NASDAQ:IOVA) is a clinical-stage biopharmaceutical company that develops and delivers tumor-infiltrating lymphocyte (TIL) therapies for patients with solid tumor cancers. Its lead product candidate is Amtagvi (lifileucel), a tumor-derived autologous T-cell immunotherapy. The company is also developing next-generation therapies using TIL, including genetically modified TIL cell therapy.
11. Janux Therapeutics, Inc. (NASDAQ:JANX)
Number of Hedge Fund Holders: 32
Janux Therapeutics, Inc. (NASDAQ:JANX) is one of the best immunotherapy stocks to buy according to hedge funds. JonesTrading maintained a Buy rating on Janux Therapeutics, Inc. (NASDAQ:JANX) on January 23, setting a price target of $50.00. The rating update came after Janux Therapeutics, Inc. (NASDAQ:JANX) announced on January 22 a collaboration and exclusive worldwide license agreement with Bristol Myers Squibb, under which the two companies would develop an undisclosed, novel, tumor-activated therapeutic targeting a validated solid tumor antigen expressed across several human cancer types.
David Campbell, Ph.D., President and CEO of Janux Therapeutics, Inc. (NASDAQ:JANX), stated that the collaboration marks a notable milestone for the company and validates the strength of its tumor-activated platforms while expanding its reach in solid tumor oncology. The terms of the agreement entail that the completion of the preclinical development up to IND submission would be undertaken by Janux Therapeutics, Inc. (NASDAQ:JANX), while Bristol Myers Squibb will hold the IND and be involved with the subsequent development and global commercialization. Janux Therapeutics, Inc. (NASDAQ:JANX) would remain actively involved in the process, supporting Bristol Myers Squibb through completion of the first Phase 1 clinical study.
Janux Therapeutics, Inc. (NASDAQ:JANX) is a preclinical stage biopharmaceutical company that develops therapeutics based on the Tumor Activated T Cell Engager platform technology. The company develops tumor-activated immunotherapies for cancer through two bispecific platforms: Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr).
10. Arcus Biosciences, Inc. (NYSE:RCUS)
Number of Hedge Fund Holders: 32
Arcus Biosciences, Inc. (NYSE:RCUS) is one of the best immunotherapy stocks to buy according to hedge funds. On February 12, Arcus Biosciences, Inc. (NYSE:RCUS) was downgraded to Equal Weight from Overweight at Wells Fargo, with the firm bringing the price target on the stock down to $23 from $30. The firm attributed the downgrade to unclear differentiation for Welireg and the potential data readout headwinds from the American Society of Clinical Oncology Genitourinary Cancers Symposium. It further told investors in a research note that the LITESPARK-001 and 002 readouts at ASCO-GU evaluating Welireg plus Keytruda may pose a negative impact on the shares of Arcus Biosciences, Inc. (NYSE:RCUS) and Exelixis.
In another development, Bank of America Securities reiterated a Hold rating on Arcus Biosciences, Inc. (NYSE:RCUS) on January 15, setting a price target of $26. However, Goldman Sachs assumed coverage and upgraded the stock to Buy from Neutral on January 12, adjusting the price target to $28 from $16.
The firm highlighted casdatifan, the company’s lead asset, as a potent and selective HIF-2alpha inhibitor under development for advanced clear cell renal cell carcinoma with a total addressable market of about 17.4K patients in the US/EU and about $1.7B estimated in risk-adjusted peak sales. Goldman Sachs stated that the company’s Phase 1 ARC-20 results in second-line exhibited notable overall response ratios of 31% and 46% for the mono and combo regimen, respectively, and may show further improvement with the combo trial maturing past the 5-month follow-up.
Arcus Biosciences, Inc. (NYSE:RCUS) is a clinical-stage biopharmaceutical company that develops and commercializes immunotherapies. The company competes in segments such as biotechnology, pharmaceutical, and other related sectors that develop immunotherapies for cancer treatment.
9. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Novartis AG (NYSE:NVS) is one of the best immunotherapy stocks to buy according to hedge funds. Novartis AG (NYSE:NVS) announced on February 13 final results from the Phase III ALIGN study, stating that Vanrafia (atrasentan) showed a positive difference in eGFR change from baseline vs. placebo at Week 136 in the ALIGN study, 4 weeks after study treatment ended, with results favoring Vanrafia across multiple timepoints, measures of kidney function, and in patients additionally receiving SGLT2 inhibitors. Management reported that clinically meaningful results were observed compared to placebo in eGFR change from baseline at the end of study treatment at Week 132, and in the prespecified exploratory group of patients additionally receiving sodium-glucose co-transporter-2 inhibitors.
Vanrafia attained accelerated approval in the U.S. and China for the reduction of proteinuria in adults with IgAN in 2025, and Novartis AG (NYSE:NVS) has plans to submit for traditional approval in 2026. The company added that ALIGN offers the longest follow-up period in pivotal Phase III studies for IgAN3, and that safety was consistent with previous findings. In addition to Vanrafia, Novartis AG (NYSE:NVS) is continually advancing its multi-asset IgAN portfolio, including Fabhalta and investigational compound zigakibart.
In a separate development, JPMorgan lifted the price target on Novartis AG (NYSE:NVS) to CHF 135 from CHF 125 on February 12, maintaining an Overweight rating on the shares.
Headquartered in Basel, Switzerland, Novartis AG (NYSE:NVS) develops, markets, and manufactures a range of healthcare and pharmaceutical products, and is also involved in immuno-oncology research. Its operations span the Innovative Medicines, Sandoz, and Corporate segments.
8. Incyte Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 46
Incyte Corporation (NASDAQ:INCY) is one of the best immunotherapy stocks to buy according to hedge funds. Jefferies reiterated a Buy rating on Incyte Corporation (NASDAQ:INCY) on February 11, setting a price target of $120. The same day, Morgan Stanley also lifted the price target on the stock to $102 from $94 while maintaining an Equal Weight rating on the shares.
Incyte Corporation (NASDAQ:INCY) also received a bullish rating update from Stifel on February 11, with the firm raising the price target on the stock to $120 from $119 while maintaining a Buy rating and noting that it anticipates a “quiet(ish)” first half. However, it still likes the longer-term, ex-Jakafi foundation.
The bullish rating updates came after Incyte Corporation (NASDAQ:INCY) announced financial results for fiscal Q4 and the full year ended December 31, 2025, on February 10, reporting a total revenue of $1.51 billion for the quarter, up 28% compared to the prior year period. Management attributed the growth to an increase in total net product revenue and milestone and contract revenue. Total revenue for the full year reached $5.14 billion, reflecting a growth of 21% compared to the prior year period and primarily driven by growth in the total net product revenue and milestone and contract revenue.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics, focusing on oncology, hematology, inflammation, and autoimmunity therapeutic areas.
7. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN) is one of the best immunotherapy stocks to buy according to hedge funds. AstraZeneca PLC (NASDAQ:AZN) received an update from Deutsche Bank on February 16, with the firm reiterating a Sell rating on the stock and setting a price target of £115.
In a separate development, AstraZeneca PLC (NASDAQ:AZN) announced on February 13 the full results from the positive Phase III KALOS and LOGOS trials, showing that the company’s Breztri Aerosphere exhibited statistically significant and clinically meaningful improvements in patients with uncontrolled asthma compared with dual-combination inhaled corticosteroid/long-acting beta2-agonist medicines: Symbicort, PT009, and the Symbicort and PT009 treatment groups combined. Breztri is a single-inhaler, fixed-dose triple-combination of ICS/LABA and a long-acting muscarinic antagonist.
AstraZeneca PLC (NASDAQ:AZN) further reported that Breztri also showed clinically meaningful reductions in the annualised rate of severe asthma exacerbations versus ICS/LABA medicines in patients with or without a recent asthma exacerbation in the pooled analysis of KALOS and LOGOS. In addition, there were no new safety or tolerability signals identified for Breztri in KALOS or LOGOS.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians, and is involved in exploring novel immuno-oncology treatment approaches. AstraZeneca PLC (NASDAQ:AZN) distributes its products and services through local representative offices and distributors.
6. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best immunotherapy stocks to buy according to hedge funds. Gilead Sciences, Inc. (NASDAQ:GILD) announced its fiscal Q4 and full year 2025 results on February 10, reporting a strong year marked by the continued growth of Biktarvy and Descovy, along with the successful launch of Yeztugo, the world’s first twice-yearly HIV prevention therapy in the country.
Gilead Sciences, Inc. (NASDAQ:GILD) also reported that the total fiscal Q4 revenues rose 5% to $7.9 billion compared to the prior year period, driven primarily by the increased sales of HIV and Liver Disease products and partially offset by lower sales of Veklury®.
Following the release, Gilead Sciences, Inc. (NASDAQ:GILD) received rating updates from several analysts. Needham and Scotiabank both released bullish rating updates for the company on February 11, with Needham raising the price target on the stock to $170 from $140 while maintaining a Buy rating, and Scotiabank lifting the price target to $177 from $140 and keeping an Outperform rating on the shares.
The same day, BofA also lifted the price target on Gilead Sciences, Inc. (NASDAQ:GILD) to $162 from $154, maintaining a Buy rating on the shares and telling investors in a post-earnings note that it is confident in 2026 growth for the company due to solid fiscal Q4 dynamics. It added that it no longer models Yeztugo cannibalization of Descovy sales in 2026.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19. Its portfolio of drugs focuses on medical areas with unmet needs, and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others.
5. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the best immunotherapy stocks to buy according to hedge funds. On February 12, Amgen Inc. (NASDAQ:AMGN) was downgraded to Hold from Buy by Freedom Capital, with the firm adjusting the price target on the stock to $375 from $360. It told investors in a research note that while it views the company’s fiscal Q4 report as “strong”, the shares are at fair value and loss of exclusivity headwinds remain for Amgen Inc. (NASDAQ:AMGN).
The rating update came the same day Amgen Inc. (NASDAQ:AMGN) announced that the European Commission’s approval of UPLIZNA® as an add-on treatment to standard therapy for adults living with generalized myasthenia gravis who are anti-acetylcholine receptor or anti-muscle-specific tyrosine kinase antibody positive. Management stated that the approval provides patients with a new and targeted treatment option, and holds the potential for long-term disease control through twice-yearly maintenance dosing, following two initial loading doses.
Amgen Inc. (NASDAQ:AMGN) also reported its fiscal Q4 and full-year 2025 results on February 3, announcing strong performance in 2025 with double-digit growth in revenues and EPS. Total revenues for fiscal Q4 rose 9% to $9.9 billion compared to the prior year period, with product sales growing 7%, driven by 10% volume growth. Total revenues for the full year reached $36.8 billion, up 10% compared to the same quarter last year.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best immunotherapy stocks to buy according to hedge funds. Bristol-Myers Squibb Company (NYSE:BMY) announced on February 12 plans to become an inaugural partner to Life Science Cares in support of its national campaign in fighting food insecurity. Management reported that the Food is Health: Nourishing Communities, Advancing Health initiative, led by Life Science Cares, aims to invest $30 million and mobilize 30,000 volunteer hours by 2030 to deliver a measurable and lasting impact for communities across the nation.
In another development, Bernstein reiterated its Hold rating on Bristol-Myers Squibb Company (NYSE:BMY) on February 10 and set a price target of $58.00. Bristol-Myers Squibb Company (NYSE:BMY) also received a rating update from Morgan Stanley on February 6, which lifted the price target on the stock to $40 from $37 while keeping an Underweight rating on the shares. The firm told investors in a research note that while the 2026 revenue and EPS guidance exceeded consensus, it was driven by a higher-than-expected Eliquis guide.
The rating updates came after Bristol-Myers Squibb Company (NYSE:BMY) reported fiscal Q4 and full-year financial results for 2025, reporting a 1% growth in fiscal Q4 revenue to $12.5 billion, with growth portfolio revenue rising 16% to $7.4 billion. Full-year revenues reached $48.2 billion, and growth portfolio revenues increased 17% to $26.4 billion.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including oncology, cardiovascular, immunology, and neuroscience.
3. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 78
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best immunotherapy stocks to buy according to hedge funds. RBC Capital reiterated a Hold rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) on February 10, setting a price target of $745.00.
The same day, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) highlighted its expanding immunology portfolio and pipeline, announcing that 36 abstracts across its immunology and inflammation portfolio and pipeline would be presented at the 2026 American Academy of Allergy, Asthma, and Immunology (AAAAI) Annual Meeting set to be held February 27 to March 2 in Philadelphia, Pennsylvania.
Management reported that highlights include the first presentations from the novel Phase 3 allergen-specific programs exhibiting the potential of a first-in-class approach to addressing burdensome ocular symptoms in adults with cat and birch allergies. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) further stated that New Dupixent® analyses across dermatological, respiratory, and gastrointestinal diseases would also be presented, in collaboration with Sanofi.
In another development, Guggenheim lifted the price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $975 from $865 on February 9, maintaining a bullish outlook with a Buy rating. The firm updated its model on the company after its earnings, and told investors that it sees key upcoming catalysts for the company, including the fianlimab/Libtayo LAG-3 data in melanoma, an FDA decision for the Eylea HD pre-filled syringe in Q2, and an NDA submission for cemdisiran in generalized myasthenia gravis in Q1.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best immunotherapy stocks to buy according to hedge funds. On February 12, Daiwa downgraded Pfizer Inc. (NYSE:PFE) to Neutral from Outperform and set a $27 price target.
In another development, Pfizer Inc. (NYSE:PFE) announced on February 6 that the U.S. Food and Drug Administration accepted and granted Priority Review for its supplemental Biologics License Application for HYMPAVZI® for the expansion of the approved indication to include treatment of hemophilia A or B patients 6 years and older with inhibitors, and pediatric patients with hemophilia A or B without inhibitors. HYMPAVZI currently holds approval for the treatment of patients 12 years of age and older with hemophilia A without factor VIII inhibitors, or hemophilia B without factor IX inhibitors in the United States.
Pfizer Inc. (NYSE:PFE) further reported that the FDA set a Prescription Drug User Fee Act action date in Q2 2026. If approved, HYMPAVZI would provide a combination of bleed protection with a straightforward, once-weekly subcutaneous injection administration that requires minimal preparation without a need for routine treatment-related lab monitoring for these difficult-to-treat patient populations.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets, and is also involved in developing immunotherapies that help the immune system to recognise and attack cancer cells.
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the best immunotherapy stocks to buy according to hedge funds. On February 13, Merck & Co., Inc. (NYSE:MRK) was upgraded to Buy from Hold by Deutsche Bank, with the firm raising the price target to $150 from $115 and telling investors that it believes the market is undervaluing the company because of Keytruda’s looming patent cliff. The firm’s analysis demonstrates a “clear path” for the company to navigate the transition effectively, adding that it believes Merck & Co., Inc. (NYSE:MRK) has a line of sight to growth, excluding Keytruda, with a trough earnings “formation at hand.”
In a separate development, Merck & Co., Inc. (NYSE:MRK) announced on February 11 the FDA approval of KEYTRUDA® and KEYTRUDA QLEX™ plus paclitaxel, with or without bevacizumab, for the treatment of adults with PD-L1+, as determined by an FDA-authorized test, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal carcinoma, who have received one or two prior systemic treatment regimens. Management stated that KEYTRUDA and KEYTRUDA QLEX mark the first and only PD-1 inhibitors approved for adults with platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal carcinoma with PD-L1+ tumors.
Merck & Co., Inc. (NYSE:MRK) also stated that KEYTRUDA QLEX’s effectiveness for its approved indications was supported by the adequate and well-controlled studies conducted with KEYTRUDA, along with additional data from MK-3475A-D77 comparing the pharmacokinetic, efficacy, and safety profiles of KEYTRUDA QLEX and KEYTRUDA.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products. The company’s medicine KEYTRUDA may treat certain cancers by working with the immune system.
While we acknowledge the potential of MRK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRK and that has 100x upside potential, check out our report about this cheapest AI stock.
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