Sectors & IndustriesHealthcareBiotechnology
Best Biotech Stocks to Buy Now (2025)
Top biotech stocks in 2025 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.

Industry: Biotechnology
F
Biotech is Zen Rated F and is the 139th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
DD Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
PTCT
PTC THERAPEUTICS INC
35
29
71
0
40
AUPH
AURINIA PHARMACEUTICALS INC
58
43
71
78
40
INCY
INCYTE CORP
47
57
57
56
20
EXEL
EXELIXIS INC
67
57
86
56
70
CPRX
CATALYST PHARMACEUTICALS INC
64
43
100
44
70

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Use Due Diligence Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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Biotech Stocks FAQ

What are the best biotech stocks to buy right now in May 2025?

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:

1. Ptc Therapeutics (NASDAQ:PTCT)


Ptc Therapeutics (NASDAQ:PTCT) is the #1 top biotech stock out of 657 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 Ptc Therapeutics (NASDAQ:PTCT) is: Value: A, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: C.

Ptc Therapeutics (NASDAQ:PTCT) has a Due Diligence Score of 35, which is 11 points higher than the biotech industry average of 24.

PTCT passed 11 out of 33 due diligence checks and has average fundamentals. Ptc Therapeutics has seen its stock return 17.65% over the past year, overperforming other biotech stocks by 97 percentage points.

Ptc Therapeutics has an average 1 year price target of $61.85, an upside of 31.03% from Ptc Therapeutics's current stock price of $47.20.

Ptc Therapeutics stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Ptc Therapeutics, 46.15% have issued a Strong Buy rating, 15.38% have issued a Buy, 23.08% have issued a hold, while 0% have issued a Sell rating, and 15.38% have issued a Strong Sell.

2. Aurinia Pharmaceuticals (NASDAQ:AUPH)


Aurinia Pharmaceuticals (NASDAQ:AUPH) is the #2 top biotech stock out of 657 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: B, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: C.

Aurinia Pharmaceuticals (NASDAQ:AUPH) has a Due Diligence Score of 58, which is 34 points higher than the biotech industry average of 24.

AUPH passed 19 out of 33 due diligence checks and has strong fundamentals. Aurinia Pharmaceuticals has seen its stock return 43.6% over the past year, overperforming other biotech stocks by 123 percentage points.

3. Incyte (NASDAQ:INCY)


Incyte (NASDAQ:INCY) is the #3 top biotech stock out of 657 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 Incyte (NASDAQ:INCY) is: Value: A, Growth: A, Momentum: D, Sentiment: B, Safety: C, Financials: B, and AI: B.

Incyte (NASDAQ:INCY) has a Due Diligence Score of 47, which is 23 points higher than the biotech industry average of 24.

INCY passed 15 out of 33 due diligence checks and has strong fundamentals. Incyte has seen its stock return 14.18% over the past year, overperforming other biotech stocks by 93 percentage points.

Incyte has an average 1 year price target of $73.50, an upside of 12.56% from Incyte's current stock price of $65.30.

Incyte stock has a consensus Hold recommendation according to Wall Street analysts. Of the 10 analysts covering Incyte, 10% have issued a Strong Buy rating, 0% have issued a Buy, 90% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the biotech stocks with highest dividends?

Out of 6 biotech stocks that have issued dividends in the past year, the 3 biotech stocks with the highest dividend yields are:

1. Jade Biosciences (NASDAQ:JBIO)


Jade Biosciences (NASDAQ:JBIO) has an annual dividend yield of 31.11%, which is 25 percentage points higher than the biotech industry average of 6.04%.

Jade Biosciences's dividend payout ratio of 0% indicates that its high dividend yield might not be sustainable for the long-term.

2. Dominari Holdings (NASDAQ:DOMH)


Dominari Holdings (NASDAQ:DOMH) has an annual dividend yield of 6.08%, which is the same as the biotech industry average of 6.04%.

Dominari Holdings's dividend payout ratio of -7.1% indicates that its high dividend yield might not be sustainable for the long-term.

3. Novo Nordisk (Ozempic) (NYSE:NVO)


Novo Nordisk (Ozempic) (NYSE:NVO) has an annual dividend yield of 2.36%, which is -4 percentage points lower than the biotech industry average of 6.04%. Novo Nordisk (Ozempic)'s dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Novo Nordisk (Ozempic)'s dividend has shown consistent growth over the last 10 years.

Novo Nordisk (Ozempic)'s dividend payout ratio of 45.2% indicates that its dividend yield is sustainable for the long-term.

Why are biotech stocks up?

Biotech stocks were up 1.58% in the last day, and up 5.12% over the last week. Neuraxis was the among the top gainers in the biotechnology industry, gaining 75.77% yesterday.

Neuraxis shares are trading lower. The company announced a direct offering consisting of 1.5 million shares.

What are the most undervalued biotech stocks?

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:

1. Puma Biotechnology (NASDAQ:PBYI)


Puma Biotechnology (NASDAQ:PBYI) 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.

Puma Biotechnology has a valuation score of 43, which is 28 points higher than the biotech industry average of 15. It passed 3 out of 7 valuation due diligence checks.

Puma Biotechnology's stock has dropped -16.93% in the past year. It has overperformed other stocks in the biotech industry by 62 percentage points.

2. Harmony Biosciences Holdings (NASDAQ:HRMY)


Harmony Biosciences Holdings (NASDAQ:HRMY) 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.

Harmony Biosciences Holdings has a valuation score of 71, which is 56 points higher than the biotech industry average of 15. It passed 5 out of 7 valuation due diligence checks.

Harmony Biosciences Holdings's stock has gained 19.85% in the past year. It has overperformed other stocks in the biotech industry by 99 percentage points.

3. Jazz Pharmaceuticals (NASDAQ:JAZZ)


Jazz Pharmaceuticals (NASDAQ:JAZZ) 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.

Jazz Pharmaceuticals has a valuation score of 71, which is 56 points higher than the biotech industry average of 15. It passed 5 out of 7 valuation due diligence checks.

Jazz Pharmaceuticals's stock has gained 2.21% in the past year. It has overperformed other stocks in the biotech industry by 82 percentage points.

Are biotech stocks a good buy now?

55.18% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 103.48% over the next year.

2.66% of biotech stocks have a Zen Rating of A (Strong Buy), 3.99% of biotech stocks are rated B (Buy), 38.36% are rated C (Hold), 34.37% are rated D (Sell), and 20.62% are rated F (Strong Sell).

What is the average p/e ratio of the biotechnology industry?

The average P/E ratio of the biotechnology industry is -156.07x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.