An updated edition of the March 26, 2026, article.

The global oncology market is undergoing rapid transformation, driven by rising cancer incidence, aging population and ongoing scientific advances. According to the American Cancer Society, the United States alone is expected to see nearly 2.1 million new cancer cases and more than 626,000 deaths in 2026. Globally, growing exposure to lifestyle-related risk factors such as smoking, obesity and physical inactivity, along with demographic changes, is increasing cancer prevalence and supporting long-term growth in oncology healthcare spending.

At the same time, innovation is reshaping cancer care. Advances in immunotherapy, targeted treatments and personalized cancer vaccines have significantly broadened options beyond traditional chemotherapy and radiation. Immune-based approaches — including checkpoint inhibitors, CAR-T therapies, therapeutic vaccines and oncolytic viruses — are leveraging the body’s immune system to fight cancer more effectively. Meanwhile, targeted therapies are improving precision by addressing specific genetic and molecular abnormalities, while personalized vaccines are advancing individualized treatment strategies.

Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are accelerating biomarker discovery, improving patient selection, and enabling earlier and more accurate diagnosis. Although a universal cure remains elusive, steady gains in survival rates and patient outcomes across multiple cancer types underscore the impact of these advances, particularly when paired with earlier detection and intervention.

Pharmaceutical companies continue to increase investment and strategic focus in oncology. Industry leaders such as Novartis (NVS Quick QuoteNVS - Free Report) , AstraZeneca (AZN Quick QuoteAZN - Free Report) , J&J (JNJ Quick QuoteJNJ - Free Report) , Pfizer (PFE Quick QuotePFE - Free Report) , AbbVie, Merck, Bristol Myers Squibb and Eli Lilly are expanding oncology pipelines with advanced modalities such as antibody-drug conjugates (ADCs), bispecific antibodies and next-generation immuno-oncology therapies. Smaller biotech firms also remain critical innovation drivers, often developing novel platforms and targets that support partnerships, licensing deals and M&A activity.

Backed by continuous innovation, supportive reimbursement trends and expanding treatment options, oncology remains one of the most resilient and attractive areas 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 Summit Therapeutics (SMMT Quick QuoteSMMT - Free Report) , Verastem Oncology (VSTM Quick QuoteVSTM - Free Report) and Xilio Therapeutics (XLO Quick QuoteXLO - Free Report) may be worth evaluating as part of a forward-looking portfolio strategy.

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3 Cancer Stocks in Focus

Summit Therapeutics’ lead pipeline candidate is ivonescimab, a dual PD-1/VEGF inhibitor that inhibits both the PD-1 pathway and the VEGF pathway at once. They are designed to overcome the limitations of single-target therapies like Keytruda. Summit in-licensed rights to develop and commercialize ivonescimab in most major global markets outside China from China-based Akeso in early 2023.

Summit Therapeutics is evaluating this drug in multiple late-stage studies across different settings in non-small cell lung cancer (NSCLC) and colorectal cancer (CRC). Ivonescimab is currently approved only in China for two distinct NSCLC indications. 

For the NSCLC indication, the drug has already generated multiple positive phase III datasets. In January, the FDA accepted a biologics license application seeking approval of ivonescimab plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who had progressed after treatment with an EGFR-TKI. The BLA filing was based on encouraging results from the phase III HARMONi study. The FDA’s decision is expected on Nov. 14, 2026.

Per Summit Therapeutics, ivonescimab has the potential to replace PD-L1 inhibitors like Keytruda and Tevimbra as the next standard of care across multiple NSCLC settings. 

SMMT 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 and $18.7 million in the first quarter of 2026.

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 recently initiated three phase II registration-directed studies on VS-7375, an oral, KRAS G12D (ON/OFF) inhibitor, in pancreatic, non-small cell lung, and colorectal cancers.

VSTM has a relatively active pipeline calendar through 2026 and 2027.

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