There are few things in life more precious than cutting edge therapeutics. And medical stock BeOne Medicines (ONC) is near an entry amid strong growth for its blockbuster cancer drug.

Founded in 2010 in Beijing, China, the company redomiciled to Basel, Switzerland, in May. Its Brukinsa treatment was the first cancer medication developed in China to gain drug-status approval by the U.S. Food and Drug Administration. It accounts for more than 60% of the company's revenue. In the second quarter alone, global sales for the drug totaled $950 million.

Brukinsa is a non-chemotherapy drug that is used to treat certain types of blood cancers. It works by inhibiting a protein found within cancerous B cells, which are a type of white blood cell. The drug treats conditions including chronic lymphocytic leukemia and small lymphocytic lymphoma.

BeOne Medicines also makes the cancer treatments Tevimbra and Pamiparib, and has several other therapies at various stages of development in its pipeline.

Overall performance is very strong for the medical stock, with its IBD Composite Rating coming in at 97 out of 99.

Earnings performance is its weakest attribute, but this is improving. It holds an Earnings Per Share Rating of 82 out of 99. It is expected to swing from a loss of $3.61 per share in 2024 to earnings of $2.09 per share this year. BeOne Medicines is then expected to see earnings surge 175% in 2026.

The drugmaker turned a profit in each of the past two quarters, with per-share earnings surging 923% to $2.25 in the most recent quarter. Sales also popped, by 42% to $1.32 billion.

Analysts Bullish On Medical Stock

Wall Street is certainly bullish on BeOne Medicines stock. The stock holds a consensus rating of strong buy with an average price target of 353.45, according to TipRanks.

Guggenheim analyst Michael Schmidt is even more enthusiastic, rating it as a buy with a 365 price target. In a recent note to clients, he touted its "improved margins," as well as its "accelerating profitability" and "limited tariff exposure."

In an Aug. 6 report, Schmidt noted that BeOne management had raised its revenue guidance to $5 billion to $5.3 billion from $4.9 billion to $5.3 billion, stemming from expectations of "continued strong revenue growth driven by Brukinsa's U.S. leadership position and global expansion."

He also said the company now expects to be free cash flow positive this year rather than just operating cash flow positive.

BeOne Medicines Stock Analysis

The stock is pulling away from a consolidation with an ideal buy point of 287.88, MarketSurge analysis shows.

However, it is also offering a higher alternate entry of 313.29. This can be used to add to existing holdings, though aggressive investors could use it to open a new position.

The stock has rebounded after getting support at the 21-day exponential moving average, a bullish sign. It is also comfortably clear of its 50-day line. Its relative strength line is also bending higher.

Big Money certainly seems to be getting behind the medical stock. It holds an Accumulation/Distribution Rating of A-, which reflects heavy buying among institutions of late.

In total, 30% of shares are currently held by funds, according to MarketSurge data. The highly respected Fidelity Contrafund (FCNTX) is among the noteworthy backers.

Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.

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