As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the immuno-oncology industry, including Exact Sciences (NASDAQ: EXAS) and its peers.

Over the next few years, immuno-oncology companies, which harness the immune system to fight illnesses such as cancer, faces strong tailwinds from advancements in precision medicine (including the use of AI to improve hit rates) and growing demand for treatments targeting rare diseases. However, headwinds such as rising scrutiny over drug pricing, regulatory unknowns, and competition from larger, more resourced pharmaceutical companies could weigh on growth.

The 4 immuno-oncology stocks we track reported a stunning Q3. As a group, revenues beat analysts’ consensus estimates by 8.4%.

Luckily, immuno-oncology stocks have performed well with share prices up 27% on average since the latest earnings results.

Exact Sciences (NASDAQ: EXAS)

With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ: EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.

Exact Sciences reported revenues of $850.7 million, up 20% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Interestingly, the stock is up 50.6% since reporting and currently trades at $100.90.

Is now the time to buy Exact Sciences? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Incyte (NASDAQ: INCY)

Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.

Incyte reported revenues of $1.37 billion, up 20% year on year, outperforming analysts’ expectations by 8.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 10% since reporting. It currently trades at $102.35.

Is now the time to buy Incyte? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Natera (NASDAQ: NTRA)

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Natera reported revenues of $592.2 million, up 34.7% year on year, exceeding analysts’ expectations by 15.1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Interestingly, the stock is up 18.1% since the results and currently trades at $234.42.

Read our full analysis of Natera’s results here.

Regeneron (NASDAQ: REGN)

Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.

Regeneron reported revenues of $3.75 billion, flat year on year. This print surpassed analysts’ expectations by 5.1%. It was an incredible quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Regeneron had the slowest revenue growth among its peers. The stock is up 29.1% since reporting and currently trades at $755.91.

Read our full, actionable report on Regeneron here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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