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3 Cancer Stocks to Watch as Oncology Innovation Accelerates
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An updated edition of the May 18, 2026, article.
The global oncology market is evolving rapidly, fueled by rising cancer incidence, an aging population and continued scientific innovation. According to the American Cancer Society, the United States is projected to record nearly 2.1 million new cancer cases and more than 626,000 cancer-related deaths in 2026. Worldwide, increasing exposure to lifestyle risk factors such as smoking, obesity and physical inactivity, combined with aging demographics, is driving cancer prevalence and supporting sustained growth in oncology-related healthcare spending.
Meanwhile, breakthroughs in cancer treatment are transforming patient care. Advances in immunotherapy, targeted medicines and personalized cancer vaccines have expanded treatment options well beyond conventional chemotherapy and radiation. Immune-based therapies — including checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines and oncolytic viruses — harness the immune system to combat cancer more effectively. At the same time, targeted therapies improve treatment precision by addressing specific genetic and molecular alterations, while personalized vaccines are paving the way for individualized care.
Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are speeding biomarker discovery, refining patient selection and enabling earlier, more accurate diagnosis. While a universal cure remains out of reach, continued improvements in survival rates and clinical outcomes across multiple cancer types highlight the progress achieved, particularly through earlier detection and timely intervention.
Pharmaceutical companies continue to prioritize oncology through increased investment and pipeline expansion. Industry leaders such as Novartis (NVS - Free Report) , AstraZeneca (AZN - Free Report) , J&J (JNJ - Free Report) , Pfizer (PFE - 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 drug targets that support partnerships, licensing deals and M&A activity.
Supported by ongoing innovation, favorable reimbursement trends and expanding treatment options, oncology remains one of the most durable and compelling segments of the global healthcare industry 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 Autolus Therapeutics (AUTL - Free Report) , NextCure (NXTC - Free Report) and Recursion Pharmaceuticals (RXRX - Free Report) may be worth evaluating as part of a forward-looking portfolio strategy.
A commercial-stage company, Autolus is primarily focused on developing, manufacturing and marketing next-generation T cell therapies targeting cancer and autoimmune diseases. Autolus has a marketed therapy, Aucatzyl (obecabtagene autoleucel or obe-cel), a CD19-directed CAR-T therapy approved in the United States and United Kingdom for adults with relapsed or refractory B-cell precursor acute lymphoblastic leukemia (B-ALL). Aucatzyl has seen a strong launch in the United States backed by market share gains. The launch in the United Kingdom, which began in January, is off to a strong start. The company has guided 2026 Aucatzyl net product revenues of $120-$135 million, up from approximately $74 million in 2025.
Beyond its marketed therapy, Autolus is pursuing a "pipeline-in-a-product" strategy by expanding obe-cel into several additional indications. Phase II pivotal studies are ongoing in pediatric relapsed or refractory B-cell precursor ALL and severe lupus nephritis patients, while a phase I study is being conducted for progressive multiple sclerosis.
NextCure is a clinical-stage biotech focused on developing targeted therapies to treat cancer. Management has concentrated resources on two lead ADC programs while seeking strategic partners for several earlier-stage assets.
The company's lead asset is SIM0505, a CDH6-targeted antibody-drug conjugate (ADC) licensed from Simcere Zaiming. NextCure owns worldwide commercialization rights outside China, Hong Kong, Macau and Taiwan, which are retained by Simcere. SIM0505 is being evaluated in a phase I study across multiple advanced solid tumors, with a particular emphasis on platinum-resistant ovarian cancer (PROC). The FDA has granted Fast Track designation to SIM0505 for women with PROC.
Early dose-escalation data presented at ASCO 2026 demonstrated encouraging antitumor activity in heavily pretreated gynecologic cancer patients. The data showed an objective response rate (ORR) of 55% for gynecologic cancers (ovarian cancer and uterine serous carcinoma) and 52.9% for ovarian cancer.
NextCure's second major program is LNCB74, a B7-H4-targeted ADC being co-developed with LigaChem Biosciences. B7-H4 is an attractive oncology target because it is highly expressed in several difficult-to-treat cancers. LNCB74 is being evaluated in a phase I study for the potential treatment of advanced solid tumors.
NXTC has a Zacks Rank #2.
Recursion Pharmaceuticals is a clinical-stage TechBio company that decodes biology and chemistry to industrialize drug discovery. Recursion is using its proprietary technology to build a novel pipeline of candidates, with an initial focus on Precision Oncology and Rare Diseases. RXRX currently has no approved commercial cancer products.
Recursion's most advanced wholly owned oncology asset is REC-1245, a potential first-in-class RBM39 degrader, being evaluated in the phase I/II DAHLIA study for the treatment of biomarker-enriched solid tumors and lymphoma. Early clinical data have been encouraging, showing a favorable safety profile, predictable dose-dependent pharmacokinetics and no dose-limiting toxicities during dose escalation. Other candidates being developed include REC-617 (CDK7 inhibitor for advanced solid tumors), REC-4539 (an LSD1 inhibitor for solid tumors) and REC-3565 (a MALT1 inhibitor for B-cell malignancies), in separate early-stage studies.
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Image: Bigstock
3 Cancer Stocks to Watch as Oncology Innovation Accelerates
An updated edition of the May 18, 2026, article.
The global oncology market is evolving rapidly, fueled by rising cancer incidence, an aging population and continued scientific innovation. According to the American Cancer Society, the United States is projected to record nearly 2.1 million new cancer cases and more than 626,000 cancer-related deaths in 2026. Worldwide, increasing exposure to lifestyle risk factors such as smoking, obesity and physical inactivity, combined with aging demographics, is driving cancer prevalence and supporting sustained growth in oncology-related healthcare spending.
Meanwhile, breakthroughs in cancer treatment are transforming patient care. Advances in immunotherapy, targeted medicines and personalized cancer vaccines have expanded treatment options well beyond conventional chemotherapy and radiation. Immune-based therapies — including checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines and oncolytic viruses — harness the immune system to combat cancer more effectively. At the same time, targeted therapies improve treatment precision by addressing specific genetic and molecular alterations, while personalized vaccines are paving the way for individualized care.
Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are speeding biomarker discovery, refining patient selection and enabling earlier, more accurate diagnosis. While a universal cure remains out of reach, continued improvements in survival rates and clinical outcomes across multiple cancer types highlight the progress achieved, particularly through earlier detection and timely intervention.
Pharmaceutical companies continue to prioritize oncology through increased investment and pipeline expansion. Industry leaders such as Novartis (NVS - Free Report) , AstraZeneca (AZN - Free Report) , J&J (JNJ - Free Report) , Pfizer (PFE - 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 drug targets that support partnerships, licensing deals and M&A activity.
Supported by ongoing innovation, favorable reimbursement trends and expanding treatment options, oncology remains one of the most durable and compelling segments of the global healthcare industry 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 Autolus Therapeutics (AUTL - Free Report) , NextCure (NXTC - Free Report) and Recursion Pharmaceuticals (RXRX - Free Report) may be worth evaluating as part of a forward-looking portfolio strategy.
Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.
3 Cancer Stocks in Focus
A commercial-stage company, Autolus is primarily focused on developing, manufacturing and marketing next-generation T cell therapies targeting cancer and autoimmune diseases. Autolus has a marketed therapy, Aucatzyl (obecabtagene autoleucel or obe-cel), a CD19-directed CAR-T therapy approved in the United States and United Kingdom for adults with relapsed or refractory B-cell precursor acute lymphoblastic leukemia (B-ALL). Aucatzyl has seen a strong launch in the United States backed by market share gains. The launch in the United Kingdom, which began in January, is off to a strong start. The company has guided 2026 Aucatzyl net product revenues of $120-$135 million, up from approximately $74 million in 2025.
Beyond its marketed therapy, Autolus is pursuing a "pipeline-in-a-product" strategy by expanding obe-cel into several additional indications. Phase II pivotal studies are ongoing in pediatric relapsed or refractory B-cell precursor ALL and severe lupus nephritis patients, while a phase I study is being conducted for progressive multiple sclerosis.
Autolus has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextCure is a clinical-stage biotech focused on developing targeted therapies to treat cancer. Management has concentrated resources on two lead ADC programs while seeking strategic partners for several earlier-stage assets.
The company's lead asset is SIM0505, a CDH6-targeted antibody-drug conjugate (ADC) licensed from Simcere Zaiming. NextCure owns worldwide commercialization rights outside China, Hong Kong, Macau and Taiwan, which are retained by Simcere. SIM0505 is being evaluated in a phase I study across multiple advanced solid tumors, with a particular emphasis on platinum-resistant ovarian cancer (PROC). The FDA has granted Fast Track designation to SIM0505 for women with PROC.
Early dose-escalation data presented at ASCO 2026 demonstrated encouraging antitumor activity in heavily pretreated gynecologic cancer patients. The data showed an objective response rate (ORR) of 55% for gynecologic cancers (ovarian cancer and uterine serous carcinoma) and 52.9% for ovarian cancer.
NextCure's second major program is LNCB74, a B7-H4-targeted ADC being co-developed with LigaChem Biosciences. B7-H4 is an attractive oncology target because it is highly expressed in several difficult-to-treat cancers. LNCB74 is being evaluated in a phase I study for the potential treatment of advanced solid tumors.
NXTC has a Zacks Rank #2.
Recursion Pharmaceuticals is a clinical-stage TechBio company that decodes biology and chemistry to industrialize drug discovery. Recursion is using its proprietary technology to build a novel pipeline of candidates, with an initial focus on Precision Oncology and Rare Diseases. RXRX currently has no approved commercial cancer products.
Recursion's most advanced wholly owned oncology asset is REC-1245, a potential first-in-class RBM39 degrader, being evaluated in the phase I/II DAHLIA study for the treatment of biomarker-enriched solid tumors and lymphoma. Early clinical data have been encouraging, showing a favorable safety profile, predictable dose-dependent pharmacokinetics and no dose-limiting toxicities during dose escalation. Other candidates being developed include REC-617 (CDK7 inhibitor for advanced solid tumors), REC-4539 (an LSD1 inhibitor for solid tumors) and REC-3565 (a MALT1 inhibitor for B-cell malignancies), in separate early-stage studies.
RXRX has a Zacks Rank #2.