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21-07-2025
- Business
- Yahoo
Betting Big on Cancer: 3 Oncology Stocks Set to Surge in 2025
An updated edition of the June 10, 2025, article. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
02-06-2025
- Business
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Zacks.com featured highlights Novartis, ENGIE, MasTec, Dorman Products and Sterling Infrastructure
Chicago, IL – June 2, 2025 – The stocks in this week's article are Novartis NVS, ENGIE SA ENGIY, MasTec MTZ, Dorman Products DORM and Sterling Infrastructure, Inc. STRL. The U.S. stock market showed mixed signals on May 29, with investors reacting to a combination of events. While NVIDIA's strong quarterly results and a favorable ruling from the U.S. International Trade court against Trump-imposed tariffs supported gains on the Nasdaq and S&P 500, the Dow Jones slipped, weighed down by investor concerns over the broader economic outlook amid escalating geopolitical uncertainties. Given such volatile market sentiment, prudent investors are expected to choose safe bet stocks like Novartis, ENGIE SA, MasTec, Dorman Products and Sterling Infrastructure, Inc. to safeguard their portfolio from huge losses (in times of crisis). These stocks bear low leverage and, therefore, should be a safer option for investors if they don't want to lose big in times of market turmoil. Now, before selecting low-leverage stocks, let's explore what leverage is and how choosing a low-leverage stock helps investors. In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing. However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing. The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find. The equity market can be volatile at times, and, as an investor, if you don't want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky. To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios. Debt-to-Equity Ratio = Total Liabilities/Shareholders' Equity This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company. With the first-quarter 2025 earnings season almost behind us, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare. Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the nine stocks that made it through the screen. Novartis: It has one of the strongest and broadest portfolios of varied drugs. On May 27, 2025, Novartis announced that it had launched a tender offer to acquire Regulus Therapeutics for $7.00 per share in cash plus a potential $7.00 contingent payment tied to a regulatory milestone, as part of a previously announced merger agreement. The move is likely to strengthen Novartis's pipeline in RNA-targeted therapies, enhancing its long-term innovation and growth strategy. The Zacks Consensus Estimate for NVS' 2025 sales suggests an improvement of 7.1% from the 2024 reported figure. The company boasts a long-term (three-to-five years) earnings growth rate of 7.9%. It currently has a Zacks Rank #2. ENGIE SA: It engages in the power, natural gas, and energy services businesses. On May 14, 2025, the company announced its first-quarter 2025 results. Its revenues grew 5.6% year over year in the first quarter. As of March 31, 2025, ENGIE has 8.5 GW of renewable and battery capacity under construction, representing more than 100 projects worldwide. The Zacks Consensus Estimate for its 2025 earnings suggests a year-over-year improvement of 22.9%. It currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here. MasTec: It is a leading infrastructure construction company operating mainly throughout North America. On May 1, 2025, the company announced its first-quarter 2025 results. Its revenues increased 6% year over year, while adjusted EBITDA margin improved 6 basis points. The Zacks Consensus Estimate for its 2025 sales indicates an improvement of 11% from the 2024 actual. The Zacks Consensus Estimate for its 2025 earnings suggests a year-over-year improvement of 54.9%. It currently carries a Zacks Rank #2. Dorman Products: It is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. On May 29, Dorman Products announced the release of hundreds of new light-duty automotive repair solutions, including several aftermarket-first innovations across key vehicle systems. This product expansion not only boosts Dorman's extensive 138,000-SKU catalog but also creates over 12 million new sales opportunities, reinforcing its market leadership and growth in the aftermarket parts industry. The Zacks Consensus Estimate for its 2025 sales indicates an improvement of 4.9% from the 2024 actual. The Zacks Consensus Estimate for its 2025 earnings suggests a year-over-year improvement of 9.7%. It currently has a Zacks Rank #2. Sterling Infrastructure: It operates through subsidiaries within segments specializing in E-Infrastructure, Building and Transportation Solutions, principally in the United States. On May 5, the company announced its first-quarter 2025 results. Its revenues increased 7% year over year, while adjusted earnings per share surged 29%. STRL boasts a long-term earnings growth rate of 15%. The stock boasts an average earnings surprise of 11.54%. It currently carries a Zacks Rank #2. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your trading. Further, you can also create your strategies and backtest them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novartis AG (NVS) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Dorman Products, Inc. (DORM) : Free Stock Analysis Report ENGIE - Sponsored ADR (ENGIY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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06-02-2025
- Business
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Novartis Rises 5% Since Q4 Earnings: How Should You Play the Stock?
Last week, Swiss pharma giant Novartis NVS reported better-than-expected fourth-quarter 2024 results, wherein both earnings and revenues beat estimates. Core earnings (excluding one-time charges) of $1.98 per share easily beat the Zacks Consensus Estimate of $1.81 and were up from $1.53 reported a year ago. Revenues of $13.15 billion rose 15% from the year-ago reported figure and beat the Zacks Consensus Estimate of $12.97 billion. On a constant currency basis, sales increased 16%, driven by the momentum in its key drugs like Entresto, Kesimpta, Kisqali, Cosentyx and Leqvio. Investors were impressed by the company's strong quarterly performance and impressive outlook for 2025. Net sales are expected to grow in mid to high single digits in 2025. Core operating income is expected to grow in high single to low double digits. Shares of the company have gained 5% since the earnings release. Novartis has performed well in the previous few months. For a company like NVS, the results of a single quarter are not that paramount, and the focus is mostly on its fundamentals. With the successful spin-off of the Sandoz business, Novartis operates as a single global operating segment. It now concentrates on four core therapeutic areas — cardiovascular, renal, metabolic, immunology, neuroscience and oncology. Top drugs like Entresto (cardiovascular) and Cosentyx (psoriasis, spondylitis and arthritis) performed well in 2024. Cosentyx sales are being boosted by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States, and volume growth in core indications. Key drugs like Kisqali (breast cancer), Kesimpta (multiple sclerosis), Scemblix (chronic myeloid leukemia or CML), Pluvicto (prostate cancer), Leqvio (cholesterol) and Fabhalta (paroxysmal nocturnal hemoglobinuria) are likely to drive Novartis' growth in the coming years. Kisqali put up a stellar performance in 2024 as sales grew across all regions, driven by growth in the United States. Strong momentum from the recently launched early breast cancer (eBC) indication also fueled sales. On its fourth-quarter conference call, Novartis announced that it has settled the compound patent litigation with a generic manufacturer for Kisqali. This supports patent protection for Kisqali in the United States is until at least the first quarter of 2031. Strong growth in Pluvicto (post-taxane setting) is also propelling sales. An anticipated launched in the first half of 2025 in the pre-taxane setting should further fuel sales. Leqvio put up a strong performance in the United States. Solid uptake in markets such as Germany and China is also fueling sales. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals ALNY. New drug Fabhalta for PNH and IgAN has shown encouraging uptake and should gain traction. An application was submitted to the FDA for expanding the drug's label for the treatment of C3 glomerulopathy (C3G). The FDA granted Priority Review status to Fabhalta in this indication. The FDA also confirmed that there wasn't any need for an Advisory Committee meeting. Label expansion of existing drugs should further fuel sales. Novartis has a deep pipeline with a number of promising candidates (remibrutinib, ianalumab, pelacarsen, atrasentan and zigakibart). The company recently announced that the phase III STEER study of OAV101 IT met the primary endpoint in children and young adults with spinal muscular atrophy. NVS also strengthened its neuroscience pipeline with the in-licensing of votoplam (PTC518), the potential first oral disease-modifying therapy for Huntington's Disease, from PTC Therapeutics PTCT. In 2024, Novartis acquired MorphoSys AG. The acquisition added pelabresib (late-stage BET inhibitor for myelofibrosis) and tulmimetostat (early-stage dual EZH2 and EZH1 inhibitor for solid tumors or lymphomas) to NVS' pipeline. Generic competition for Tasigna, Promacta and Entresto may affect sales. Entersto is likely to face generics in the United States by mid-2025. Entresto is a top drug for NVS and a decline in its sales should have an adverse impact on the top line. Meanwhile, a readout on cardiovascular candidate pelacarsen (secondary prevention of cardiovascular events in patients with elevated levels of lipoprotein) was expected in 2025. However, the same is now anticipated in 2026. Shares of Novartis have risen 6.2% in the past year against the industry's decline of 4.4%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings per share has risen from $8.34 per share to $8.42 while that for 2026 has increased from $8.80 to $8.84 over the past seven days. Image Source: Zacks Investment Research Pharma bigwigs are mostly considered safe havens for investors interested in this sector. NVS has one of the most diversified portfolios in the industry, with a presence in most markets. Newer drugs pave the way for growth, and the approval of additional new drugs should further bolster the portfolio. While generic competition, particularly for Entresto, is a major headwind, the performance of key brands is impressive and should enable the company offset this decline. Backed by strong momentum in key drugs in 2024, Novartis is confident in its mid-term guidance of 5% CAGR (2024-2029) at constant currency in sales and continues to target a core operating income margin guidance of 40%+ by 2027. For investors already owning the stock, staying invested would be prudent, given the company's strong and diversified portfolio, encouraging pipeline progress, rising estimates and a good dividend yield. Novartis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alnylam Pharmaceuticals, Inc. (ALNY) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report PTC Therapeutics, Inc. (PTCT) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research
