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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:

Aurinia Pharmaceuticals (NASDAQ:AUPH) is the #1 top biotech stock out of 651 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: B, Safety: C, Financials: A, and AI: C.

Aurinia Pharmaceuticals (NASDAQ:AUPH) has a Due Diligence Score of 62, which is 38 points higher than the biotech industry average of 24.

AUPH passed 20 out of 33 due diligence checks and has strong fundamentals. Aurinia Pharmaceuticals has seen its stock return 53.74% over the past year, overperforming other biotech stocks by 125 percentage points.

Exelixis (NASDAQ:EXEL) is the #2 top biotech stock out of 651 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 Exelixis (NASDAQ:EXEL) is: Value: A, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: C.

Exelixis (NASDAQ:EXEL) has a Due Diligence Score of 63, which is 39 points higher than the biotech industry average of 24.

EXEL passed 21 out of 33 due diligence checks and has strong fundamentals. Exelixis has seen its stock return 93.83% over the past year, overperforming other biotech stocks by 165 percentage points.

Exelixis has an average 1 year price target of $43.40, a downside of -0.62% from Exelixis's current stock price of $43.67.

Exelixis stock has a consensus Buy recommendation according to Wall Street analysts. Of the 15 analysts covering Exelixis, 40% have issued a Strong Buy rating, 20% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Incyte (NASDAQ:INCY) is the #3 top biotech stock out of 651 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: C, 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 11.44% over the past year, overperforming other biotech stocks by 82 percentage points.

Incyte has an average 1 year price target of $75.00, an upside of 9.7% from Incyte's current stock price of $68.37.

Incyte stock has a consensus Hold recommendation according to Wall Street analysts. Of the 10 analysts covering Incyte, 20% have issued a Strong Buy rating, 0% have issued a Buy, 80% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 5 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 5.77%, which is 4 percentage points higher than the biotech industry average of 1.56%.

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

Novo Nordisk (Ozempic) (NYSE:NVO) has an annual dividend yield of 2.35%, which is 1 percentage points higher than the biotech industry average of 1.56%. Novo Nordisk (Ozempic)'s dividend payout is not stable, having dropped more than 10% ten 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.

Royalty Pharma (NASDAQ:RPRX) has an annual dividend yield of 1.81%, which is the same as the biotech industry average of 1.56%. 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 34.4% indicates that its dividend yield is sustainable for the long-term.

Biotech stocks were down -0.86% in the last day, and up 1.66% over the last week. Achieve Life Sciences was the among the top losers in the biotechnology industry, dropping -36.47% yesterday.

Achieve Life Sciences shares are trading lower after the company announced a $45 million public offering.

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 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 1.59% in the past year. It has overperformed other stocks in the biotech industry by 73 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 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 gained 3.1% in the past year. It has overperformed other stocks in the biotech industry by 74 percentage points.

United Therapeutics (NASDAQ:UTHR) 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.

United Therapeutics 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.

United Therapeutics's stock has dropped -10.31% in the past year. It has overperformed other stocks in the biotech industry by 61 percentage points.

53.41% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 105.31% over the next year.

2.38% of biotech stocks have a Zen Rating of A (Strong Buy), 3.89% of biotech stocks are rated B (Buy), 37.15% are rated C (Hold), 36.29% are rated D (Sell), and 20.3% are rated F (Strong Sell).