Let’s dig into the relative performance of Natera (NASDAQ: NTRA) and its peers as we unravel the now-completed Q1 immuno-oncology earnings season.

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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.9%.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

Best Q1: 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 $501.8 million, up 36.5% year on year. This print exceeded analysts’ expectations by 12.5%. Overall, it was an exceptional quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

“We delivered another strong quarter, with volume growth across the business, including a record growth quarter for Signatera,” said Steve Chapman, chief executive officer of Natera.

Natera pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 2.5% since reporting and currently trades at $166.95.

We think Natera is a good business, but is it a buy today? Read our full report here, it’s free.

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 $1.05 billion, up 19.5% year on year, outperforming analysts’ expectations by 6.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $67.42.

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

Weakest Q1: 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 $3.03 billion, down 3.7% year on year, falling short of analysts’ expectations by 6.1%. It was a disappointing quarter as it posted a miss of analysts’ EPS estimates.

Regeneron delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 14.1% since the results and currently trades at $524.

Read our full analysis of Regeneron’s results here.

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 $706.8 million, up 10.9% year on year. This number surpassed analysts’ expectations by 2.7%. Taking a step back, it was a satisfactory quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.

Exact Sciences had the weakest full-year guidance update among its peers. The stock is up 13.7% since reporting and currently trades at $53.59.

Read our full, actionable report on Exact Sciences here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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