5 Best Cancer Stocks to Buy Now

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

Number of Hedge Fund holders: 69

Bristol-Myers Squibb Company (NYSE:BMY) is one of the world’s largest pharmaceutical companies. The company manufactures drugs and biologics for diseases such as cancer, HIV, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis, and psychiatric disorders.

Bristol-Myers Squibb Company (NYSE:BMY) is constantly upping its game in the cancer division. On August 18, the company announced the acquisition of Turning Point Therapeutics in an all-cash transaction of $76 per share at a 122% premium. The acquisition was primarily focused on boosting its cancer-fighting drugs, especially with Turning Point’s repotrectinib.

In March, Bristol-Myers Squibb Company (NYSE:BMY) announced that FDA approved its first drug in a new class of cancer immunotherapies as an initial treatment for advanced melanoma. According to the company, the treatment is expected to generate $4 billion in annual revenues for the company. 

On September 12, BMO Capital analyst Evan Seigerman maintained an Outperform rating on Bristol-Myers Squibb Company (NYSE:BMY) and raised the price target to $94 from $92. 

Here is what Baron Funds had to say about Bristol-Myers Squibb Company (NYSE:BMY) in its Q2 2022 investor letter:

“We established a position in Bristol-Myers Squibb Company, a global biopharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of oncology, immunology, cardiovascular, and neurology. The stock trades at a low valuation relative to its current earnings because the company faces 

loss of exclusivity on several key drugs over the next eight years, including Revlimid, Eliquis, and Opdivo.

At the same time, Bristol-Myers has multiple new products in the early stages of launch (e.g., Opdualag, Camzyos, Breyanzi, and Reblozyl), a robust new product pipeline (e.g., Deucravacitinib, Milvexian, and CELMoD agents), and a strong balance sheet combined with strong free cash flow generation that the company can use for acquisitions. Management believes these growth drivers can more than offset the loss of exclusivity and drive revenue growth through the end of the decade. Given the company’s low valuation, if the company can execute, we think there is substantial upside in the stock.”