In this article, we will be taking a look at the 8 Best Immunology Stocks to Buy According to Hedge Funds.
Despite growing geopolitical tensions related to the Iran war, Callanish Capital CEO Haig Bathgate shared an optimistic stance on global markets during an appearance on CNCB on May 7. Although conflicts frequently cause short-term volatility, he contended that their long-term effects on equity markets are typically minimal. He claims that structural factors often have a greater influence on markets than transient geopolitical shocks.
Bathgate noted that investors frequently become unduly swayed by current events and stressed the significance of historical perspective. According to him, conflicts usually only cause temporary interruptions, affecting some industries more than others, and they hardly ever change long-term market trends. He also noted that US equity markets had been improving near the close of last year, even prior to the intensification of the Iranian dispute. As a result, he thinks investors should pay more attention to long-term factors like artificial intelligence, the dynamics of the energy supply, and long-term profitability trends influenced by capital expenditure cycles and technological innovation rather than short-term geopolitical noise.
Immunology is one of the most promising and quickly developing fields in the biotechnology and pharmaceutical sectors in this larger macro setting. Due to the growing demand for novel treatments for infectious illnesses, cancer, and autoimmune disorders, the worldwide immunotherapy market is expected to grow from $240 billion in 2023 to $1.3 trillion by 2033.
The rising worldwide burden of disease supports this rise. About 20 million new cases of cancer were found in 2022 alone, and 9.7 million individuals lost their lives to the disease. By 2050, there will likely be over 35 million cancer cases annually, which will raise the need for innovative therapies like immunotherapy. These treatments can be used alone or in combination with chemotherapy and other tactics, like immunomodulating drugs that enhance the body’s ability to recognize and eradicate cancer cells.
Due to significant regulatory advancements and FDA approvals for tumor-agnostic medications, North America accounted for approximately 48.19% of the worldwide immunotherapy market in 2023. As more than 2 million more cases of cancer are predicted in the US alone in 2024, demand will increase. Next-generation immunotherapies for complicated diseases like lymphoma and B-cell leukemia are being developed through research projects like those of Canada’s National Research Council.
With that being said, let’s now move on to the best immunology stocks.
Our Methodology
For our methodology, we screened cancer and immunology ETFs and selected the top eight stocks based on recent news flow and developments. We then ranked these stocks in ascending order according to their total number of hedge fund holdings as of Q1 2026, as reported by the Insider Monkey database.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Here is our list of the 8 best immunology stocks to buy according to hedge funds.
8. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Number of Hedge Fund Holders: 18
Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best immunology stocks on our list.
TheFly reported on May 18 that a federal jury in the U.S. District Court for the District of Massachusetts determined that Takeda Pharmaceutical Company violated U.S. antitrust laws by engaging in an agreement that delayed the introduction of a generic version of its Amitiza medication. The case centered on claims that the company improperly restricted market competition through a so-called “pay-for-delay” arrangement with a rival manufacturer. As a result of the verdict, the jury ordered TAK to pay substantial monetary damages amounting to several hundred million dollars.
In a separate move, on May 4, Takeda Pharmaceutical Company Limited (NYSE:TAK) announced that its pivotal Phase 2/3 clinical study, TAK-881-3001, successfully achieved its primary endpoint in patients with primary immunodeficiency disease. The trial evaluated pharmacokinetic performance and demonstrated that TAK-881, a high-concentration subcutaneous immunoglobulin therapy facilitated with recombinant hyaluronidase, was comparable to the established HYQVIA treatment in terms of drug exposure.
Secondary outcomes indicated similar safety, efficacy, and tolerability profiles between the two therapies, with no new safety concerns identified. The results also suggested that TAK-881 may enable effective immune protection while reducing infusion volume and time, potentially offering a more convenient dosing experience for patients. The study included both adult and pediatric participants and supports continued development of TAK-881 as a next-generation immunoglobulin therapy, with additional analyses ongoing and regulatory submissions planned across major global markets in 2026.
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a global biopharmaceutical company headquartered in Tokyo and Osaka, Japan. Founded in 1781, it is Japan’s largest pharmaceutical firm and ranks among the top 20 globally.
7. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 30
Twist Bioscience Corporation (NASDAQ:TWST) is among the best immunology stocks.
TheFly reported on May 5 that a Guggenheim analyst increased the price target on TWST from $55 to $60 while maintaining a Buy rating on the stock. The revision followed the company’s latest quarterly results and came ahead of its investor day held on May 21. The adjustment reflects updated financial estimates and expectations after recent performance data. The analyst’s note highlighted continued positive sentiment toward the company’s outlook, with valuation changes incorporated based on the most recent earnings report and upcoming strategic presentation to investors.
Twist Bioscience Corporation (NASDAQ:TWST) reported its fiscal second quarter 2026 financial results on May 4, 2026, covering the period ended March 31, 2026. The company recorded revenue of $110.7 million, representing 19% year-over-year growth, driven by gains in both DNA Synthesis and Protein Solutions as well as NGS Applications. Gross margin improved to 51.6%, while research and development expenses declined compared to the prior year period. Selling, general, and administrative expenses increased year over year, contributing to a wider net loss of $44.0 million, or $0.71 per share. Adjusted EBITDA showed a modest improvement but remained negative at $13.3 million.
The company ended the quarter with approximately $172 million in cash and investments and raised its full-year outlook, projecting continued revenue growth and gross margin expansion, with expectations of approaching adjusted EBITDA breakeven in the fourth quarter of fiscal 2026.
Twist Bioscience Corporation (NASDAQ:TWST) is a biotechnology company that engineers synthetic DNA on silicon to support immunology and drug discovery. It provides tools like antibody discovery platforms, DNA libraries, and sequencing solutions to help researchers study and engineer the immune system.
