In this article, we will look at the Top 10 Gene Therapy Stocks to Buy According to Hedge Funds.
On February 23, Lauren Goodwin, New York Life Investments, appeared on CNBC’s ‘Closing Bell’ to talk about the state of equity markets and tariff uncertainties. Talking about the situation around tariffs, tech, and software, she stated that we are finally seeing a moment of the market looking at the wall of worry and feeling some indigestion. This makes sense to her, as we have seen a lot of inconsistency around AI and software, and a lot of the risks related to geopolitics are getting very binary for investors.
That said, she stated that she has a very constructive outlook for this year, with earnings growth last quarter of 13% and the forecast for this year looking very similar to that, policy rate moving lower, and a 10-year yield that is just above 4%. All of these factors, according to her, make it very hard to be overly pessimistic.
READ ALSO: 11 Best Transportation Stocks to Buy According to Wall Street Analysts AND 10 Small-Cap Stocks With Huge Growth Potential.
Talking about tariffs, Goodwin stated that from a macroeconomic perspective, not a lot has changed, as we have an average effective tariff rate that looks pretty similar. The story on tariffs is really on the micro level, according to her, spanning across how these new tariffs are put into position, and where the sector and company winners and losers play out. That is likely to be challenging for certain names. We talked about the healthcare sector in a recently published article on 11 Best Strong Buy Healthcare Stocks to Invest In. Here is an excerpt from the article:
“On February 23, Steven Wieting, CIO Group chief investment strategist, appeared on CNBC’s ‘The Exchange’ to talk about the stock market and the recent price action in stocks. CNBC reported that staples, healthcare, and utilities are all leading, outperforming since January 1 and showing that this is not a one-day trend but has rather been going on since the turn of the calendar. Wieting stated that a lot is going on in the market, with trends showing AI hardware eating software, its effects on the lending industry for software, and several other undercurrents, with healthcare and energy up, the probability of a US strike on Iran, and oil prices picking up sharply at the expense of growth sentiment. He also cited tariffs at 15% and the situation surrounding them.
Talking about healthcare, Wieting stated that he is strongly overweight in healthcare because of how badly it performed and how much policy concern played a role in its deep underperformance, which is now catching up. While it is not a wonderful year-to-date performer, he thinks that there is more there, and cited its low correlation to tech and the circumstances there.
Wieting also talked about the shifting AI sentiment, stating that the market narrative has generally gone quite negative on the broader impact of AI, with the market pricing in the ongoing AI infrastructure boom while associated applications drive considerable declines in business costs. He further said that there are likely to be mistakes and exaggerations within the market sentiment associated with AI.”
With these broader market trends in view, let’s narrow down and look at the top gene therapy stocks to buy according to hedge funds.
Our Methodology
We sifted through stock screeners and financial media reports to compile a list of the best gene therapy stocks and selected the top 10 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 26.
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).
Top 10 Gene Therapy Stocks to Buy According to Hedge Funds
10. Beam Therapeutics Inc. (NASDAQ:BEAM)
Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the top gene therapy stocks to buy according to hedge funds. On February 25, RBC Capital adjusted the price target on Beam Therapeutics Inc. (NASDAQ:BEAM) to $26 from $22 and maintained a Sector Perform rating on the shares. The rating update came after the company reported its fiscal Q4 financial results, with the firm telling investors that Beam Therapeutics Inc. (NASDAQ:BEAM) is continually targeting BLA submission this year on sickle cell disease, and announced a non-dilutive debt deal with Sixth Street to support potential commercialization.
Beam Therapeutics Inc. (NASDAQ:BEAM) reported its fiscal Q4 and full-year 2025 results on February 24 and also announced the expansion of its liver-targeted genetic disease franchise with a new program, BEAM-304, for the treatment of phenylketonuria (PKU). PKU has a considerable unmet need and affects around 20,000 individuals in the United States. The company’s plans for 2026 include a focus on execution across its most advanced programs, including reporting updated Phase 1/2 data, further defining the pivotal path forward for BEAM-302, and preparing for a potential BLA submission for risto-cel as early as year-end.
Beam Therapeutics Inc. (NASDAQ:BEAM) also announced that it entered into a strategic financing agreement with Sixth Street for significant, long-term, non-dilutive capital to fund the potential launch of risto-cel in sickle cell disease (SCD). The company reported cash, cash equivalents, and marketable securities of $1.25 billion as of December 31, 2025, compared to $850.7 million as of December 31, 2024.
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops precision genetic medicines through base editing, a technology that allows efficient and predictable single-base changes at targeted genomic sequences. The company’s lead programs focus on sickle cell disease and alpha-1 antitrypsin deficiency. Beam Therapeutics Inc. (NASDAQ:BEAM) is advancing programs in other genetic diseases as well, along with oncology and immunology. Its primary programs include BEAM-101, Engineered Stem Cell Antibody Paired Evasion (ESCAPE), BEAM-302, BEAM-301, and BEAM-201.
9. Krystal Biotech, Inc. (NASDAQ:KRYS)
Krystal Biotech, Inc. (NASDAQ:KRYS) is one of the top gene therapy stocks to buy according to hedge funds. On February 25, Guggenheim revised the price target on Krystal Biotech, Inc. (NASDAQ:KRYS) to $284 from $224 and reiterated a Buy rating on the shares following the company’s fiscal Q4 report. Krystal Biotech, Inc. (NASDAQ:KRYS) announced its fiscal Q4 and full year 2025 financial results on February 17, reporting that it recorded $107.1 million and $389.1 million in VYJUVEK net product revenue for fiscal Q4 and full year 2025, respectively.
The company further reported that it has secured over 660 reimbursement approvals for VYJUVEK in the United States and is continuing to maintain strong access nationwide. Steady VYJUVEK uptake is being driven by high patient demand since launch in Germany, France, and Japan, and Krystal Biotech’s (NASDAQ:KRYS) estimates show that over 90 patients have been prescribed VYJUVEK therapy across the three countries. It is advancing pricing discussions with the reimbursement authorities in Italy and is currently on track for a potential launch in the second half of 2026. Krystal Biotech, Inc. (NASDAQ:KRYS) also reported a strong balance sheet, ending the quarter with $955.9 million in cash and investments.
Krystal Biotech, Inc. (NASDAQ:KRYS) is a biotechnology company that develops and commercializes pharmaceutical products and offers the product VYJUVEK, which is a topical gel that treats wounds in adult and pediatric patients (from birth) with dystrophic epidermolysis bullosa (DEB).
