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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.

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:

Mimedx Group (NASDAQ:MDXG) is the #1 top biotech stock out of 624 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 Mimedx Group (NASDAQ:MDXG) is: Value: B, Growth: A, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: B.

Mimedx Group (NASDAQ:MDXG) has a Due Diligence Score of 45, which is 22 points higher than the biotech industry average of 23.

MDXG passed 14 out of 33 due diligence checks and has strong fundamentals. Mimedx Group has seen its stock return 11.68% over the past year, overperforming other biotech stocks by 32 percentage points.

Mimedx Group has an average 1 year price target of $12.00, an upside of 56.86% from Mimedx Group's current stock price of $7.65.

Mimedx Group stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Mimedx Group, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Incyte (NASDAQ:INCY) is the #2 top biotech stock out of 624 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: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: B.

Incyte (NASDAQ:INCY) has a Due Diligence Score of 60, which is 37 points higher than the biotech industry average of 23.

INCY passed 19 out of 33 due diligence checks and has strong fundamentals. Incyte has seen its stock return 26.12% over the past year, overperforming other biotech stocks by 46 percentage points.

Incyte has an average 1 year price target of $88.75, a downside of -5.06% from Incyte's current stock price of $93.48.

Incyte stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Incyte, 50% have issued a Strong Buy rating, 0% have issued a Buy, 41.67% have issued a hold, while 8.33% have issued a Sell rating, and 0% have issued a Strong Sell.

Theravance Biopharma (NASDAQ:TBPH) is the #3 top biotech stock out of 624 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 Theravance Biopharma (NASDAQ:TBPH) is: Value: B, Growth: A, Momentum: C, Sentiment: C, Safety: D, Financials: A, and AI: C.

Theravance Biopharma (NASDAQ:TBPH) has a Due Diligence Score of 36, which is 13 points higher than the biotech industry average of 23.

TBPH passed 11 out of 33 due diligence checks and has average fundamentals. Theravance Biopharma has seen its stock return 77.91% over the past year, overperforming other biotech stocks by 98 percentage points.

Theravance Biopharma has an average 1 year price target of $25.67, an upside of 75.08% from Theravance Biopharma's current stock price of $14.66.

Theravance Biopharma stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Theravance Biopharma, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 4 biotech stocks that have issued dividends in the past year, the 3 biotech stocks with the highest dividend yields are:

Dominari Holdings (NASDAQ:DOMH) has an annual dividend yield of 10.57%, which is 8 percentage points higher than the biotech industry average of 2.67%.

Dominari Holdings's dividend payout ratio of -13.4% indicates that its high dividend yield might not be sustainable for the long-term.

Royalty Pharma (NASDAQ:RPRX) has an annual dividend yield of 2.32%, which is the same as the biotech industry average of 2.67%. 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 37.2% indicates that its dividend yield is sustainable for the long-term.

Bio Techne (NASDAQ:TECH) has an annual dividend yield of 0.51%, which is -2 percentage points lower than the biotech industry average of 2.67%. Bio Techne's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Bio Techne's dividend has not shown consistent growth over the last 10 years.

Bio Techne's dividend payout ratio of 68.1% indicates that its dividend yield is sustainable for the long-term.

Biotech stocks were up 0.64% in the last day, and up 2.9% over the last week. Cabaletta Bio was the among the top gainers in the biotechnology industry, gaining 46.15% yesterday.

Cabaletta Bio shares are trading higher after Cantor Fitzgerald maintained its overweight on the stock and raised Its price target from $15 to $30.

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 -11.08% in the past year. It has overperformed other stocks in the biotech industry by 9 percentage points.

Puma Biotechnology (NASDAQ:PBYI) 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.

Puma Biotechnology 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.

Puma Biotechnology's stock has gained 78.95% in the past year. It has overperformed other stocks in the biotech industry by 99 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 57, which is 43 points higher than the biotech industry average of 14. It passed 4 out of 7 valuation due diligence checks.

Incyte's stock has gained 26.12% in the past year. It has overperformed other stocks in the biotech industry by 46 percentage points.

58.9% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 59.32% over the next year.

2.89% of biotech stocks have a Zen Rating of A (Strong Buy), 4.96% of biotech stocks are rated B (Buy), 44.21% are rated C (Hold), 33.47% are rated D (Sell), and 14.46% are rated F (Strong Sell).