Betting Big on Cancer: 3 Oncology Stocks Set to Surge in 2025
The global cancer treatment market is experiencing rapid growth, driven by rising cancer incidence, aging population and increasing demand for safer, more effective therapies. Per the American Cancer Society, in the United States alone, over 2 million new cancer cases and 618,000 related deaths are projected for 2025.
Breakthroughs in immunotherapy, targeted treatments, and personalized cancer vaccines are reshaping the oncology landscape. These next-generation therapies offer greater precision and improved outcomes, supporting strong market expansion.
Major pharma companies — including Novartis NVS, AstraZeneca AZN, Johnson & Johnson JNJ, Pfizer PFE, AbbVie ABBV, Bristol Myers Squibb and Eli Lilly LLY — are investing heavily in cutting-edge approaches like antibody-drug conjugates (ADCs) and immuno-oncology agents. Meanwhile, smaller biotechs are driving innovation, making them attractive acquisition targets for larger players seeking to enhance their oncology pipelines.
As scientific progress accelerates, the oncology market is poised for robust, long-term growth — offering compelling opportunities for investors.
These factors highlight the huge potential of cancer-focused companies. With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you're looking to align your portfolio with this rising trend, now might be the time to consider stocks like J&J, Novartis and Allogene Therapeutics ALLO
3 Cancer Stocks in Focus
J&J's Oncology segment comprises around 27% of its total revenues. Its oncology sales rose 22.3% on an operational basis in the second quarter of 2025 to $6.3 billion, driven by strong market growth and share gains of key products such as multiple myeloma treatment Darzalex and prostate cancer drug, Erleada. New cancer drugs, such as Carvykti, Tecvayli, Talvey and Rybrevant plus Lazcluze, contributed significantly to growth as they witnessed strong launches.
On its second-quarter conference call, J&J stated that it expects its oncology sales to reach $50 billion by the end of the decade. J&J seems quite confident in the target, citing strong growth in its marketed cancer drugs and the potential of upcoming launches like TAR-200 in bladder cancer and the subcutaneous formulation of Rybrevant plus Lazcluze for advanced EGFR-mutated non-small cell lung cancer (NSCLC). TAR-200 is under priority review with the FDA for treating non-muscle invasive bladder cancer and is expected to be approved this year. The subcutaneous formulation of Rybrevant plus Lazcluze has been recommended for approval in the EU while it is under review in the United States.
J&J's oncology pipeline has gained strong momentum in the last year and a half, with promising developments in colorectal and head and neck cancers. In this period, J&J had eight proof-of-concept readouts, which led the candidates to move to late-stage pivotal studies across the portfolio.
J&J has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Novartis has a diverse oncology portfolio, including targeted therapies and immunotherapies.
The FDA's approval of Kisqali, its CDK4/6 inhibitor for the first-line treatment of postmenopausal women with HR+/HER2 advanced or metastatic breast cancer, significantly boosted the company's oncology portfolio, with the drug now being one of the top growth drivers for the company. In particular, Kisqali has shown robust uptake in the metastatic breast cancer setting. The recent approval of a broader label for Kisqali in the United States and the EU should further fuel its sales. Kisqali recorded sales of $1.1 billion in the second quarter of 2025, up 64% year over year.
Other new oncology drugs like Pluvicto (PSMA-positive metastatic castration-resistant prostate cancer) and Scemblix (chronic myeloid leukemia) also put up a stellar performance, setting the momentum for the coming years as well. Novartis' oncology sales rose 20% in constant currency terms to $4.3 billion in the second quarter of 2025.
In 2024, Novartis acquired Mariana Oncology and Germany-based MorphoSys AG, which strengthened its oncology pipeline.
This Zacks Rank #2 company is also investing in research to develop treatments for both common and rare cancers, focusing on precision medicine strategies.
Allogene Therapeutics is focused on developing allogeneic CAR T therapies for treating cancer, especially hematologic indications with high unmet needs.
This Zacks Rank #2 company has multiple pipeline candidates in the clinical stage of development, including CAR T cell product candidates — cemacabtagene ansegedleucel (cema-cel or formerly ALLO-501A) and ALLO-316 for cancer indications.
Lead candidate, cema-cel, is being developed as a frontline treatment for patients with large B-cell lymphoma (LBCL). In this regard, the company has initiated the pivotal phase II ALPHA3 study to evaluate cema-cel in patients with first-line LBCL.
ALLO-316, the company's first CAR T candidate for solid tumors, is being evaluated in the TRAVERSE study in adults with advanced or metastatic renal cell carcinoma. Data from the study has shown that the therapy-induced early anti-tumor activity with deepening responses over time, especially in heavily pre-treated patients with high CD70 expression.
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Pfizer Inc. (PFE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
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Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
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