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Best Biotech Stocks to Buy Now (2026)

Top biotech stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best biotech stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best biotechnology stocks to buy right now are:

Pharming Group Nv (NASDAQ:PHAR) is the #1 top biotech stock out of 606 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Pharming Group Nv (NASDAQ:PHAR) is: Value: B, Growth: B, Momentum: B, Sentiment: B, Safety: C, Financials: B, and AI: C.

Pharming Group Nv (NASDAQ:PHAR) has a Due Diligence Score of 30, which is 5 points higher than the biotech industry average of 25.

PHAR passed 9 out of 33 due diligence checks and has average fundamentals. Pharming Group Nv has seen its stock return 98.9% over the past year, overperforming other biotech stocks by 127 percentage points.

Pharming Group Nv has an average 1 year price target of $39.00, an upside of 134.38% from Pharming Group Nv's current stock price of $16.64.

Pharming Group Nv stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Pharming Group Nv, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Innoviva (NASDAQ:INVA) is the #2 top biotech stock out of 606 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Innoviva (NASDAQ:INVA) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: C.

Innoviva (NASDAQ:INVA) has a Due Diligence Score of 56, which is 31 points higher than the biotech industry average of 25.

INVA passed 17 out of 33 due diligence checks and has strong fundamentals. Innoviva has seen its stock return 28.52% over the past year, overperforming other biotech stocks by 57 percentage points.

Innoviva has an average 1 year price target of $37.33, an upside of 60.23% from Innoviva's current stock price of $23.30.

Innoviva stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Innoviva, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Aurinia Pharmaceuticals (NASDAQ:AUPH) is the #3 top biotech stock out of 606 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Aurinia Pharmaceuticals (NASDAQ:AUPH) is: Value: B, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Aurinia Pharmaceuticals (NASDAQ:AUPH) has a Due Diligence Score of 55, which is 30 points higher than the biotech industry average of 25.

AUPH passed 18 out of 33 due diligence checks and has strong fundamentals. Aurinia Pharmaceuticals has seen its stock return 84.33% over the past year, overperforming other biotech stocks by 113 percentage points.

Aurinia Pharmaceuticals has an average 1 year price target of $17.33, an upside of 16.96% from Aurinia Pharmaceuticals's current stock price of $14.82.

Aurinia Pharmaceuticals stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Aurinia Pharmaceuticals, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 7 biotech stocks that have issued dividends in the past year, the 3 biotech stocks with the highest dividend yields are:

Novabay Pharmaceuticals (NYSEMKT:NBY) has an annual dividend yield of 268.46%, which is 231 percentage points higher than the biotech industry average of 37.84%.

Novabay Pharmaceuticals's dividend payout ratio of -105.3% indicates that its high dividend yield might not be sustainable for the long-term.

Dominari Holdings (NASDAQ:DOMH) has an annual dividend yield of 20.46%, which is -17 percentage points lower than the biotech industry average of 37.84%.

Dominari Holdings's dividend payout ratio of -42.4% indicates that its high dividend yield might not be sustainable for the long-term.

Oramed Pharmaceuticals (NASDAQ:ORMP) has an annual dividend yield of 7.35%, which is -30 percentage points lower than the biotech industry average of 37.84%.

Oramed Pharmaceuticals's dividend payout ratio of 16.3% indicates that its high dividend yield is sustainable for the long-term.

Biotech stocks were up 5.53% in the last day, and up 5.59% over the last week. Apellis Pharmaceuticals was the among the top gainers in the biotechnology industry, gaining 135.4% yesterday.

Apellis Pharmaceuticals share are trading higher after the company announced that it will be acquired by Biogen for $41 per share.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued biotech stocks right now are:

Harmony Biosciences Holdings (NASDAQ:HRMY) is the most undervalued biotech stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Harmony Biosciences Holdings has a valuation score of 71, which is 57 points higher than the biotech industry average of 14. It passed 5 out of 7 valuation due diligence checks.

Harmony Biosciences Holdings's stock has dropped -15.61% in the past year. It has overperformed other stocks in the biotech industry by 13 percentage points.

Exelixis (NASDAQ:EXEL) is the second most undervalued biotech stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Exelixis has a valuation score of 43, which is 29 points higher than the biotech industry average of 14. It passed 3 out of 7 valuation due diligence checks.

Exelixis's stock has gained 16.17% in the past year. It has overperformed other stocks in the biotech industry by 45 percentage points.

Incyte (NASDAQ:INCY) is the third most undervalued biotech stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Incyte has a valuation score of 71, which is 57 points higher than the biotech industry average of 14. It passed 5 out of 7 valuation due diligence checks.

Incyte's stock has gained 55.44% in the past year. It has overperformed other stocks in the biotech industry by 84 percentage points.

63.46% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 63.66% over the next year.

2.19% of biotech stocks have a Zen Rating of A (Strong Buy), 4.82% of biotech stocks are rated B (Buy), 48.68% are rated C (Hold), 33.99% are rated D (Sell), and 10.31% are rated F (Strong Sell).