Sectors & IndustriesHealthcareBiotechnology
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.

Industry: Biotechnology
F
Biotech is Zen Rated F and is the 135th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Price
Value
Graham Fair Value
Graham Fair Value %
P/E
Forward P/E
P/S
P/B
PEG
Free Cash Flow
Free Cash Flow Yield
Book Value
BVPS
EV
EV/EBITDA
BBIO
BRIDGEBIO PHARMA INC
$68.05N/AN/A-16.20x-36.53x36.90x-6.78xN/A-$585.93M-4.49%-$1.93B-10.08$14.33B-21.57
TTRX
TURN THERAPEUTICS INC
$3.85N/AN/AN/A-34.31xN/A224.92xN/AN/AN/A$504.02k0.02$110.35MN/A
SLGL
SOL-GEL TECHNOLOGIES LTD
$65.78N/AN/AN/A-9.47xN/A7.04xN/AN/AN/A$26.03M9.34$177.62MN/A
CGEN
COMPUGEN LTD
$1.67N/AN/A-5.57x-7.65x22.57x3.56xN/AN/AN/A$43.83M0.47$99.79MN/A
NRSN
NEUROSENSE THERAPEUTICS LTD
$0.94N/AN/A-2.61x-3.59xN/A-44.56xN/A-$8.39M-35.11%-$519.00k-0.02$22.46M-2.54
KZIA
KAZIA THERAPEUTICS LTD
$5.79N/AN/A-2.36x-8.35x39.39x-8.69xN/A-$8.62M-18.39%-$5.39M-0.67$46.35M-3.32
RLMD
RELMADA THERAPEUTICS INC
$3.88N/AN/A-2.16x-5.85xN/A30.06xN/A-$39.99M-31.06%$9.47M0.29$283.15M-5.04
NXTC
NEXTCURE INC
$11.10N/AN/A-0.46x-1.32xN/A1.26xN/A-$48.91M-164.65%$23.65M8.84$26.83M-0.49
GRCE
GRACE THERAPEUTICS INC
$3.60N/AN/A-6.79x-3.53xN/A0.81xN/A-$12.01M-20.94%$62.82M3.95$34.00M-3.60
ABUS
ARBUTUS BIOPHARMA CORP
$3.84N/AN/A-16.70x-23.53x50.53x9.54xN/A-$45.35M-6.15%$77.40M0.40$720.72M-17.37
ZNTL
ZENTALIS PHARMACEUTICALS INC
$2.39N/AN/A-1.15x-1.26x-4.25x0.68xN/A-$133.44M-77.41%$252.87M3.51$167.69M-1.13
QTTB
Q32 BIO INC
$4.24N/AN/A-1.25x-1.60xN/A-2.83xN/A-$38.79M-74.74%-$18.45M-1.51$18.84M-0.46
IONS
IONIS PHARMACEUTICALS INC
$86.50N/AN/A-53.73x-27.67x14.29x22.67xN/A-$302.66M-2.19%$617.97M3.87$15.16B-102.87
CNTB
CONNECT BIOPHARMA HOLDINGS LTD
$2.43N/AN/AN/A-0.62xN/A2.45xN/AN/AN/A$55.37M0.99$98.78MN/A
RLAY
RELAY THERAPEUTICS INC
$8.92N/AN/A-5.19x-5.22x185.83x2.54xN/A-$248.87M-16.19%$607.71M3.53$1.49B-5.06
HYFT
MINDWALK HOLDINGS CORP
$1.57N/AN/A-2.55x-6.28x4.89x5.65xN/A-$7.43M-10.25%$12.83M0.28$63.04M-2.99
GLTO
GALECTO INC
$25.26N/AN/A-2.09x-19.35xN/A4.19xN/A-$12.23M-36.48%$8.01M6.03$25.98M-1.64
GLUE
MONTE ROSA THERAPEUTICS INC
$19.55N/AN/A61.09x-15.04x8.87x5.18xN/A$145.02M9.00%$245.84M2.98$1.10B36.32
CANF
CAN-FITE BIOPHARMA LTD
$4.16N/AN/AN/AN/A4.22x0.66xN/A-$8.36M-353.20%$4.18M7.36-$3.61M0.41
SLS
SELLAS LIFE SCIENCES GROUP INC
$3.73N/AN/A-13.32x-11.71xN/A11.64xN/A-$30.62M-7.56%$45.63M0.42$487.49M-19.23
NVO
NOVO NORDISK A S
$47.64$149.88-68.21%13.06x2.09x4.35x6.93x0.14x$9.33B4.38%$30.70B6.88$229.25B9.50
INSM
INSMED INC
$149.86N/AN/A-24.29x-49.03x70.99x33.80xN/A-$906.14M-2.86%$945.57M4.47$32.37B-30.06
CAMP
CAMP4 THERAPEUTICS CORP
$3.84N/AN/A0.06x-4.08x27.63x3.07xN/A-$47.64M-45.49%$58.67M2.15$109.49M-2.20
ACOG
ALPHA COGNITION INC
$5.10N/AN/A-3.72x-3.77x11.09x3.27xN/A-$15.95M-19.37%$33.91M2.10$75.43M-3.82
HRTX
HERON THERAPEUTICS INC
$1.26N/AN/A-15.75x-72.83x1.38x15.52xN/A-$31.03M-14.44%$14.89M0.09$328.41M-37.58
HYPD
HYPERION DEFI INC
$4.14N/AN/A-0.19x1.32x72.63x0.47xN/A-$16.82M-67.42%$70.76M11.74$33.79M-1.46
CYPH
CYPHERPUNK TECHNOLOGIES INC
$0.69N/AN/A-0.57x-1.28xN/A14.59xN/A-$52.80M-183.57%$2.70M0.07$28.89M-0.57
AKTS
AKTIS ONCOLOGY INC
$18.98N/AN/AN/AN/AN/AN/AN/AN/AN/A-$132.39M-2.52N/AN/A
GRDX
GRIDAI TECHNOLOGIES CORP
$2.91N/AN/A-0.24x-1.64xN/A0.43xN/A-$1.90M-39.52%$22.59M13.67$8.05M-1.63
TCRX
TSCAN THERAPEUTICS INC
$1.03N/AN/A-0.92x-1.13x15.85x0.41xN/A-$135.85M-101.55%$144.02M1.11-$20.46M0.15
IVVD
INVIVYD INC
$1.59N/AN/A-3.38x-6.78x5.41x3.98xN/A-$80.44M-29.75%$93.07M0.55$288.38M-5.09
SEER
SEER INC
$1.79N/AN/A-1.32x-1.29x6.15x0.37xN/A-$45.08M-44.75%$271.81M4.83$78.61M-1.08
LXEO
LEXEO THERAPEUTICS INC
$7.16N/AN/A-2.65x-4.62xN/A4.32xN/A-$107.21M-24.55%$120.83M1.98$486.80M-4.74
PLYX
POLARYX THERAPEUTICS INC
$8.91N/AN/AN/AN/AN/AN/AN/AN/AN/A$5.30M0.12N/AN/A
PASG
PASSAGE BIO INC
$9.51N/AN/A-0.66x-1.89xN/A0.97xN/A-$32.32M-106.91%$31.12M9.79$1.79M-0.04
XLO
XILIO THERAPEUTICS INC
$0.54N/AN/A-0.86x-2.98x2.45x-3.51xN/A-$17.58M-22.55%-$8.10M-0.06-$69.90M1.23
IBIO
IBIO INC
$2.42N/AN/A-1.74x-6.83x268.89x0.97xN/A-$17.30M-13.51%$56.04M1.06$29.37M-1.56
PBM
PSYENCE BIOMEDICAL LTD
$3.13N/AN/AN/AN/AN/A0.08xN/AN/AN/A$11.87M50.06-$6.26MN/A
FATE
FATE THERAPEUTICS INC
$1.14N/AN/A-0.86x-0.97x19.00x0.56xN/A-$115.30M-85.00%$234.07M1.97$159.90M-1.13
LEGN
LEGEND BIOTECH CORP
$17.10N/AN/A-13.15x45.12x3.47x3.12xN/A-$186.30M-5.90%$1.01B5.48$2.58B-14.50
PVLA
PALVELLA THERAPEUTICS INC
$82.20N/AN/A-50.74x-20.35x-16,440.00x25.15xN/A-$22.59M-2.48%$38.68M3.50$909.39M-32.53
IVA
INVENTIVA SA
$5.88N/AN/A-1.34x-5.97x31.28x-54.30xN/A-$106.44M-16.63%-$10.36M-0.10$574.96M-4.71
KYNB
KYNTRA BIO INC
$8.22N/AN/A0.15x-0.67x-0.28x-1.95xN/A-$16.89M-50.79%-$17.03M-4.21-$21.31M-0.10
SNSE
SENSEI BIOTHERAPEUTICS INC
$8.86N/AN/A-0.46x-0.58xN/A0.49xN/A-$22.15M-198.18%$23.01M18.24$2.63M-0.12
XNCR
XENCOR INC
$11.61N/AN/A-6.71x-4.14x5.75x1.33xN/A-$136.92M-15.85%$625.32M8.40$1.00B-11.81
PLRZ
POLYRIZON LTD
$12.85N/AN/A-0.03xN/AN/A0.69xN/A-$2.63M-85.22%$18.38M76.39-$3.24M1.03
JBIO
JADE BIOSCIENCES INC
$15.32N/AN/A-1.46x-7.85xN/A3.93xN/A-$72.28M-11.92%$179.35M4.53$655.43M-10.06
NCNA
NUCANA PLC
$2.22N/AN/A0.01x-1.82xN/A0.00xN/A-$23.37M-252.88%$34.11M8.20-$33.04M1.60
CVM
CEL SCI CORP
$5.00N/AN/A-0.80x-1.19xN/A2.63xN/A-$17.16M-84.62%$15.96M3.93$38.15M-1.83
CNTA
CENTESSA PHARMACEUTICALS PLC
$23.49N/AN/A-12.36x-13.98x209.73x10.47xN/A-$181.17M-5.75%$301.57M2.25$3.22B-14.19
ALGS
ALIGOS THERAPEUTICS INC
$7.32N/AN/A-0.58x-1.02x28.71x0.63xN/A-$79.53M-104.78%$71.83M6.93$9.05M-0.13
MDWD
MEDIWOUND LTD
$17.79N/AN/A-9.62x-7.21x9.37x4.55xN/A-$18.60M-9.49%$50.16M4.55$177.27M-11.49
CRBU
CARIBOU BIOSCIENCES INC
$1.57N/AN/A-0.92x-1.09x15.70x1.03xN/A-$127.72M-87.20%$141.85M1.52$161.06M-1.07
MDGL
MADRIGAL PHARMACEUTICALS INC
$477.60N/AN/A-37.05x453.91x14.50x17.33xN/A-$164.63M-1.53%$625.73M27.83$10.89B-40.58
OKYO
OKYO PHARMA LTD
$1.92N/AN/A-10.11x-8.82xN/A-21.62xN/A-$6.50M-8.80%-$3.42M-0.09$69.80M-11.16
ROIV
ROIVANT SCIENCES LTD
$25.82N/AN/A-22.07x-20.12x1,358.95x4.33xN/A-$766.86M-4.26%$4.27B6.13$17.11B-24.02
PEPG
PEPGEN INC
$4.48N/AN/A-1.59x-3.32xN/A1.89xN/A-$85.76M-55.71%$163.14M4.75$181.11M-1.95
EVMN
EVOMMUNE INC
$17.31N/AN/AN/A-6.24xN/A-2.98xN/AN/AN/A-$183.14M-118.54$517.61MN/A
COYA
COYA THERAPEUTICS INC
$4.84N/AN/A-4.36x-3.19x20.34x3.71xN/A-$12.14M-15.00%$27.28M1.63$73.14M-3.82
URGN
UROGEN PHARMA LTD
$21.35N/AN/A-6.55x-17.85x10.63x-8.66xN/A-$138.13M-13.46%-$115.41M-2.40$1.04B-7.19
PRTA
PROTHENA CORP PUBLIC LTD CO
$8.91N/AN/A-1.71x14.66x40.68x1.63xN/A-$188.22M-39.25%$294.99M5.48$157.86M-0.67
PTHS
PELTHOS THERAPEUTICS INC
$22.99N/AN/A-1.35x-3.73x9.50x1.21xN/A-$17.01M-24.17%$58.25M19.03$59.62M-2.83
LBRX
LB PHARMACEUTICALS INC
$23.82N/AN/AN/A-5.75xN/A1.94xN/AN/AN/A$310.22M53.42$336.03MN/A
STOK
STOKE THERAPEUTICS INC
$32.40N/AN/A44.38x-10.40x9.24x6.01xN/A$52.37M2.76%$308.11M5.26$1.77B55.77
ALMS
ALUMIS INC
$26.19N/AN/A-11.24x-8.28x123.54x7.11xN/A-$373.40M-13.70%$384.77M3.70$2.71B-10.87
GLSI
GREENWICH LIFESCIENCES INC
$29.00N/AN/A-19.86x-20.91xN/A183.88xN/A-$8.59M-2.17%$2.18M0.16$397.97M-20.44
CRVS
CORVUS PHARMACEUTICALS INC
$20.46N/AN/A-120.35x-33.41xN/A21.29xN/A-$32.22M-1.90%$71.77M0.87$1.53B-101.91
MRKR
MARKER THERAPEUTICS INC
$1.65N/AN/A-1.34x-1.12x5.89x1.50xN/A-$14.82M-53.58%$18.39M1.10$8.57M-0.60
ADCT
ADC THERAPEUTICS SA
$4.01N/AN/A-2.80x-3.60x7.28x-2.09xN/A-$132.26M-24.16%-$238.18M-1.75$378.34M-3.36
GERN
GERON CORP
$1.53N/AN/A-12.75x-33.33x5.56x3.93xN/A-$132.82M-13.01%$248.71M0.37$1.15B-25.69
RARE
ULTRAGENYX PHARMACEUTICAL INC
$24.70N/AN/A-4.17x-6.24x3.91x1,103.75xN/A-$451.39M-18.32%$2.16M0.02$3.04B-5.62
TLSA
TIZIANA LIFE SCIENCES LTD
$1.36N/AN/A-12.36x-6.67xN/A38.51xN/A-$1.55M-1.03%$3.94M0.04$147.97M-8.90
KALV
KALVISTA PHARMACEUTICALS INC
$14.90N/AN/AN/A-4.82xN/A44.30xN/AN/AN/A$17.00M0.32$657.80MN/A
TRVI
TREVI THERAPEUTICS INC
$11.46N/AN/A-30.97x-23.81xN/A7.74xN/A-$44.03M-2.64%$189.79M1.31$1.41B-30.90
ATON
ALPHATON CAPITAL CORP
$0.54N/AN/A-0.07x-1.01xN/A0.32xN/A-$3.65M-313.25%$9.59M4.42$2.89M-0.19
NAMS
NEWAMSTERDAM PHARMA CO NV
$34.30N/AN/A-14.39x-19.61x95.01x4.59xN/A-$168.07M-4.32%$846.59M7.47$3.26B-12.70
JANX
JANUX THERAPEUTICS INC
$13.07N/AN/A-7.83x-4.41x81.18x0.81xN/A-$71.40M-8.81%$976.56M15.75$759.59M-7.61
ZLAB
ZAI LAB LTD
$18.00N/AN/A-9.47x-135.24x4.49x2.62xN/A-$190.48M-9.60%$759.95M6.90$1.39B-7.81
ALT
ALTIMMUNE INC
$4.87N/AN/A-4.55x-3.92xN/A2.74xN/A-$66.36M-15.24%$185.60M2.08$460.88M-5.51
OCS
OCULIS HOLDING AG
$28.48N/AN/A-10.58x-15.05x4,746.67x9.87xN/A-$74.45M-4.68%$161.23M2.89$1.54B-12.09
THAR
THARIMMUNE INC
$4.14N/AN/A-1.04x-57.98xN/A23.57xN/A-$8.72M-33.74%$6.15M0.99$137.67M-13.37
VYGR
VOYAGER THERAPEUTICS INC
$3.68N/AN/A-1.70x-2.25x6.90x0.93xN/A-$118.86M-54.92%$219.83M3.74$192.24M-1.62
TPST
TEMPEST THERAPEUTICS INC
$2.40N/AN/A-0.24x-0.85xN/A1.68xN/A-$33.40M-313.42%$6.35M1.43$11.55M-0.34
NKTX
NKARTA INC
$2.02N/AN/A-1.47x-1.47xN/A0.42xN/A-$93.55M-62.57%$337.90M4.57$157.26M-1.72
CGTX
COGNITION THERAPEUTICS INC
$1.06N/AN/A-2.21x-3.78xN/A2.56xN/A-$29.53M-35.75%$36.53M0.47$54.13M-1.95
NBY
NOVABAY PHARMACEUTICALS INC
$0.76N/AN/A0.33x-1.98x1.58x86.36xN/A-$7.13M-159.61%$1.11M0.19$94.43M27.24
PCSA
PROCESSA PHARMACEUTICALS INC
$2.38N/AN/A-0.07x-0.48xN/A0.92xN/A-$10.73M-237.23%$5.83M3.07-$915.89k0.07
NAUT
NAUTILUS BIOTECHNOLOGY INC
$2.03N/AN/A-4.06x-3.26xN/A1.52xN/A-$53.92M-21.03%$169.14M1.34$259.53M-4.60
PTGX
PROTAGONIST THERAPEUTICS INC
$84.49N/AN/A109.73x226.45x25.75x8.18xN/A$63.71M1.18%$645.44M10.12$5.18B102.04
GALT
GALECTIN THERAPEUTICS INC
$2.80N/AN/A-4.75x-6.70xN/A-1.44xN/A-$30.62M-17.04%-$125.30M-1.95$291.27M-9.66
XCUR
EXICURE INC
$4.03N/AN/A-1.09xN/AN/A3.71xN/A-$8.43M-33.08%$6.93M1.10$21.27M-2.44
ELVN
ENLIVEN THERAPEUTICS INC
$29.42N/AN/A-15.99x-14.69xN/A3.67xN/A-$71.82M-3.93%$476.12M7.67$1.64B-17.03
RANI
RANI THERAPEUTICS HOLDINGS INC
$1.22N/AN/A-1.54x-4.43x46.92x-18.86xN/A-$27.78M-49.02%-$7.86M-0.17$161.65M-7.43
NUVB
NUVATION BIO INC
$5.70N/AN/A-11.63x-11.48x73.08x6.00xN/A-$190.25M-9.75%$325.88M0.95$2.06B-9.88
MBX
MBX BIOSCIENCES INC
$37.67N/AN/A4.90x-12.48xN/A4.36xN/A-$78.91M-6.12%$387.54M11.33$1.47B-18.33
DBVT
DBV TECHNOLOGIES SA
$21.26N/AN/A-4.13x-577.72x105.77x13.60xN/A-$98.29M-16.90%$52.85M1.93$656.93M-5.39
KPTI
KARYOPHARM THERAPEUTICS INC
$6.26N/AN/A-0.43x-0.92x0.38x-0.40xN/A-$89.30M-164.55%-$269.26M-31.06$265.14M-3.32
ANRO
ALTO NEUROSCIENCE INC
$15.22N/AN/A-6.65x-6.48xN/A4.24xN/A-$53.80M-13.04%$111.56M4.12$360.92M-6.16
SION
SIONNA THERAPEUTICS INC
$36.11N/AN/A-7.73x-15.71xN/A5.01xN/A-$61.65M-3.86%$321.67M7.27$1.57B-23.05
OCGN
OCUGEN INC
$1.33N/AN/A-6.05x-5.53x73.89x117.57xN/A-$53.53M-13.23%$3.53M0.01$415.47M-7.39

Biotech Stocks FAQ

What are the best biotech stocks to buy right now in Feb 2026?

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. Biocryst Pharmaceuticals (NASDAQ:BCRX)


Biocryst Pharmaceuticals (NASDAQ:BCRX) is the #1 top biotech stock out of 610 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 Biocryst Pharmaceuticals (NASDAQ:BCRX) is: Value: B, Growth: A, Momentum: C, Sentiment: A, Safety: C, Financials: B, and AI: B.

Biocryst Pharmaceuticals (NASDAQ:BCRX) has a Due Diligence Score of 15, which is -9 points lower than the biotech industry average of 24. Although this number is below the industry average, our proven quant model rates BCRX as a "A".

BCRX passed 5 out of 33 due diligence checks and has weak fundamentals. Biocryst Pharmaceuticals has seen its stock lose -26.92% over the past year, overperforming other biotech stocks by 4 percentage points.

Biocryst Pharmaceuticals has an average 1 year price target of $21.86, an upside of 242.59% from Biocryst Pharmaceuticals's current stock price of $6.38.

Biocryst Pharmaceuticals stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Biocryst Pharmaceuticals, 28.57% have issued a Strong Buy rating, 57.14% have issued a Buy, 14.29% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Jazz Pharmaceuticals (NASDAQ:JAZZ)


Jazz Pharmaceuticals (NASDAQ:JAZZ) is the #2 top biotech stock out of 610 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 Jazz Pharmaceuticals (NASDAQ:JAZZ) is: Value: A, Growth: B, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: B.

Jazz Pharmaceuticals (NASDAQ:JAZZ) has a Due Diligence Score of 16, which is -8 points lower than the biotech industry average of 24. Although this number is below the industry average, our proven quant model rates JAZZ as a "A".

JAZZ passed 5 out of 33 due diligence checks and has weak fundamentals. Jazz Pharmaceuticals has seen its stock return 37.84% over the past year, overperforming other biotech stocks by 69 percentage points.

Jazz Pharmaceuticals has an average 1 year price target of $213.27, an upside of 28.87% from Jazz Pharmaceuticals's current stock price of $165.50.

Jazz Pharmaceuticals stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Jazz Pharmaceuticals, 63.64% have issued a Strong Buy rating, 27.27% have issued a Buy, 9.09% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Pharming Group Nv (NASDAQ:PHAR)


Pharming Group Nv (NASDAQ:PHAR) is the #3 top biotech stock out of 610 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: A, Sentiment: B, Safety: C, Financials: C, and AI: B.

Pharming Group Nv (NASDAQ:PHAR) has a Due Diligence Score of 33, which is 9 points higher than the biotech industry average of 24.

PHAR passed 10 out of 33 due diligence checks and has average fundamentals. Pharming Group Nv has seen its stock return 81.4% over the past year, overperforming other biotech stocks by 112 percentage points.

What are the biotech stocks with highest dividends?

Out of 5 biotech stocks that have issued dividends in the past year, the 3 biotech stocks with the highest dividend yields are:

1. Dominari Holdings (NASDAQ:DOMH)


Dominari Holdings (NASDAQ:DOMH) has an annual dividend yield of 26.41%, which is 21 percentage points higher than the biotech industry average of 5.56%.

Dominari Holdings's dividend payout ratio of 8.4% indicates that its high dividend yield is sustainable for the long-term.

2. Oramed Pharmaceuticals (NASDAQ:ORMP)


Oramed Pharmaceuticals (NASDAQ:ORMP) has an annual dividend yield of 7.33%, which is 2 percentage points higher than the biotech industry average of 5.56%.

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

3. Royalty Pharma (NASDAQ:RPRX)


Royalty Pharma (NASDAQ:RPRX) has an annual dividend yield of 1.97%, which is -4 percentage points lower than the biotech industry average of 5.56%. Royalty Pharma's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Royalty Pharma's dividend has shown consistent growth over the last 10 years.

Royalty Pharma's dividend payout ratio of 49.4% indicates that its dividend yield is sustainable for the long-term.

Why are biotech stocks up?

Biotech stocks were up 2.73% in the last day, and down -0.36% over the last week. Roivant Sciences was the among the top gainers in the biotechnology industry, gaining 22.14% yesterday.

Roivant Sciences shares are trading higher after the company reported better-than-expected Q3 sales results.

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. Harmony Biosciences Holdings (NASDAQ:HRMY)


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 55 points higher than the biotech industry average of 16. It passed 5 out of 7 valuation due diligence checks.

Harmony Biosciences Holdings's stock has dropped -3.89% in the past year. It has overperformed other stocks in the biotech industry by 27 percentage points.

2. Innoviva (NASDAQ:INVA)


Innoviva (NASDAQ:INVA) 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.

Innoviva has a valuation score of 57, which is 41 points higher than the biotech industry average of 16. It passed 4 out of 7 valuation due diligence checks.

Innoviva's stock has gained 19.39% in the past year. It has overperformed other stocks in the biotech industry by 50 percentage points.

3. Incyte (NASDAQ:INCY)


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 57, which is 41 points higher than the biotech industry average of 16. It passed 4 out of 7 valuation due diligence checks.

Incyte's stock has gained 44.62% in the past year. It has overperformed other stocks in the biotech industry by 75 percentage points.

Are biotech stocks a good buy now?

64.15% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 67.9% over the next year.

3.35% of biotech stocks have a Zen Rating of A (Strong Buy), 6.5% of biotech stocks are rated B (Buy), 41.93% are rated C (Hold), 37.53% are rated D (Sell), and 10.69% 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 234.95x.
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