The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Natera (NASDAQ: NTRA) and the rest of the immuno-oncology stocks fared in Q3.

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 17.5% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 15.1%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

“Results in the third quarter were excellent, including our largest increase in quarterly clinical MRD units to date,” said Steve Chapman, chief executive officer of Natera.

Natera scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 10.1% since reporting and currently trades at $218.48.

Read why we think that Natera is one of the best immuno-oncology stocks, our full report is free.

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 an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $101.17.

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

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, exceeding analysts’ expectations by 5%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Exact Sciences delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 28.3% since the results and currently trades at $85.93.

Read our full analysis of Exact Sciences’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 number topped 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 23% since reporting and currently trades at $719.99.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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