Cancer Stocks to Buy as Innovation Reshapes Global Oncology Market

An updated edition of the February 5, 2026, article.

The global oncology market is entering a period of rapid evolution, fueled by rising cancer incidence, aging populations and continued scientific breakthroughs. According to the American Cancer Society, the United States alone is projected to record approximately 2.1 million new cancer cases and more than 626,000 deaths in 2026. On a global scale, increasing exposure to lifestyle-related risk factors—such as smoking, obesity, and sedentary behavior— and demographic shifts are driving higher cancer prevalence, reinforcing long-term growth in oncology-related healthcare spending.

At the same time, innovation is reshaping the treatment landscape. Breakthroughs in immunotherapy, targeted therapies and personalized cancer vaccines have expanded treatment options well beyond conventional chemotherapy and radiation. Immune-based strategies, including checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines and oncolytic viruses, harness the body’s immune system to detect and eliminate cancer cells. Simultaneously, targeted treatments are improving precision by focusing on specific genetic and molecular abnormalities, while personalized vaccines are pushing oncology further toward individualized care.

Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are accelerating biomarker discovery, enhancing patient stratification, and enabling earlier and more accurate diagnoses. While a universal cure remains out of reach, consistent improvements in survival rates and patient outcomes across multiple cancer types highlight the tangible benefits of these advances, particularly when combined with earlier detection and intervention.

Pharmaceutical companies are responding with sustained investment and strategic focus. Industry leaders such as Novartis NVS, AstraZeneca AZN, J&J JNJ, Pfizer PFE, AbbVie, Merck MRK, Bristol Myers Squibb and Eli Lilly are expanding their oncology pipelines with cutting-edge modalities such as antibody-drug conjugates (ADCs), bispecific antibodies, and next-generation immuno-oncology therapies. Meanwhile, smaller biotech firms continue to play a pivotal role in driving innovation, often serving as the source of novel platforms and targets that fuel partnerships, licensing agreements and M&A activity.

Supported by ongoing innovation, favorable reimbursement trends and a growing range of treatment options, oncology remains one of the most resilient and attractive segments of the global healthcare sector for long-term investors.

With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. For those looking to gain exposure to the oncology space, companies such as J&J, Verastem Oncology VSTM and Xilio Therapeutics XLO may be worth evaluating as part of a forward-looking portfolio strategy.

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3 Cancer Stocks in Focus

J&J is one of the key pharmaceutical players in the oncology segment with significant expertise in blood cancers and solid tumors. It is the #1 company in multiple myeloma, with its key drug Darzalex considered the foundational gold-standard treatment.

Its Oncology segment comprises around 27% of total revenues. Its oncology sales rose 20.9% on an operational basis in 2025, driven by strong market growth and share gains of key products such as Darzalex and prostate cancer drug, Erleada. The sales growth was partially dampened by lower sales of Imbruvica.

Three of J&J’s new cancer drugs are Carvykti, a BCMA CAR-T therapy for relapsed or refractory multiple myeloma, Tecvayli for relapsed or refractory multiple myeloma and Talvey, a novel bispecific therapy for heavily pretreated multiple myeloma. These drugs also contributed to top-line growth in 2025. Combined, they generated $3.0 billion in sales in 2025.

J&J expects the momentum to continue and targets its oncology sales to reach $50 billion by 2030. Though quite bullish, J&J seems quite confident that it can meet the target, citing strong growth in its marketed cancer drugs and new launches like Inlexzoh/TAR-200 in high-risk non-muscle invasive bladder cancer and the subcutaneous formulation of Rybrevant plus Lazcluze for advanced EGFR-mutated non-small cell lung cancer.

J&J believes its new cancer drugs, Talvey, Tecvayli and Rybrevant plus Lazcluze, have the potential to deliver peak sales of $5 billion.

J&J’s oncology pipeline has gained strong momentum in the last couple of years with promising developments in colorectal and head and neck cancers. It is also building its oncology pipeline through M&A deals. Last year, it acquired Halda Therapeutics, which added a promising clinical-stage treatment for prostate cancer with potential across multiple tumor types.

J&J has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Verastem Oncology is a precision oncology company focused on targeting key signaling pathways—particularly the RAS/MAPK pathway, which is affected in a large proportion of cancers. Its novel combination regimen of avutometinib plus defactinib was approved by the FDA in early May 2025 for treating KRAS mutant recurrent low-grade serous ovarian cancer (LGSOC), a rare and distinct type of ovarian cancer. The approval was granted under the FDA’s accelerated approval pathway. It is commercialized in the U.S. market as an oral combination co-pack with the two prescription products, known as Avmapki Fakzynja Co-Pack. The launch is off to a strong start. The innovative combination therapy generated $30.9 million in sales in 2025.

Following the FDA approval, Avmapki Fakzynja Co-Pack became the first and only FDA-approved treatment for the LGSOC indication. Per Verastem Oncology, the combo sets a new standard of care for women with recurrent LGSOC with a KRAS mutation.

The company is also evaluating avutometinib plus defactinib in combination studies in first-line metastatic pancreatic cancer, non-small cell lung cancer (NSCLC) and other RAS-driven tumors. The company is also developing VS-7375, an oral, KRAS G12D (ON/OFF) inhibitor, for treating patients with KRAS G12D mutant solid tumors, in early-stage studies.

Verastem has a Zacks Rank #2.

Xilio Therapeutics has an exclusive license agreement with Gilead to develop and commercialize its investigational tumor-activated IL-12 inhibitor, efarindodekin alfa, as a monotherapy in a phase II study in patients with advanced solid tumors.

Another key candidate in its pipeline is XTX501, a novel bispecific PD-1 / masked IL-2. For this candidate, Xilio plans to submit an investigational new drug (IND) application in mid-2026 to begin clinical studies. Xilio plans to begin a phase I study for XTX501 in the second half of 2026, subject to the FDA clearing the IND application. Xilio Therapeutics plans to initially evaluate XTX501 in NSCLC, with the goal of subsequently expanding development into additional solid tumor types, including those that are less responsive or resistant to PD-1–based therapies. The company sees XTX501 as a potential foundational “backbone” therapy.

In addition, Xilio is advancing a suite of preclinical “masked” T-cell engagers targeting tumor antigens such as PSMA, CLDN18.2 and STEAP1, with plans to enter clinical development by 2027, including a collaboration with AbbVie.

Xilio has a Zacks Rank #2

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