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.

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 608 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: A, Safety: C, Financials: C, and AI: C.

Pharming Group Nv (NASDAQ:PHAR) has a Due Diligence Score of 36, which is 12 points higher than the biotech industry average of 24.

PHAR passed 11 out of 33 due diligence checks and has average fundamentals. Pharming Group Nv has seen its stock return 90.87% over the past year, overperforming other biotech stocks by 108 percentage points.

Aurinia Pharmaceuticals (NASDAQ:AUPH) is the #2 top biotech stock out of 608 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: A, Growth: C, Momentum: B, Sentiment: B, Safety: C, Financials: A, and AI: C.

Aurinia Pharmaceuticals (NASDAQ:AUPH) has a Due Diligence Score of 52, which is 28 points higher than the biotech industry average of 24.

AUPH passed 17 out of 33 due diligence checks and has strong fundamentals. Aurinia Pharmaceuticals has seen its stock return 87.68% over the past year, overperforming other biotech stocks by 105 percentage points.

Aurinia Pharmaceuticals has an average 1 year price target of $17.33, an upside of 22.32% from Aurinia Pharmaceuticals's current stock price of $14.17.

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.

Jazz Pharmaceuticals (NASDAQ:JAZZ) is the #3 top biotech stock out of 608 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: A, Momentum: C, Sentiment: C, Safety: C, 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 32.63% over the past year, overperforming other biotech stocks by 50 percentage points.

Jazz Pharmaceuticals has an average 1 year price target of $222.73, an upside of 17.21% from Jazz Pharmaceuticals's current stock price of $190.02.

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.

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 21.95%, which is 17 percentage points higher than the biotech industry average of 5.02%.

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

Oramed Pharmaceuticals (NASDAQ:ORMP) has an annual dividend yield of 7.32%, which is 2 percentage points higher than the biotech industry average of 5.02%.

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

Royalty Pharma (NASDAQ:RPRX) has an annual dividend yield of 1.94%, which is -3 percentage points lower than the biotech industry average of 5.02%. 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 49.2% indicates that its dividend yield is sustainable for the long-term.

Biotech stocks were down -0.66% in the last day, and up 1.01% over the last week. Ginkgo Bioworks Holdings was the among the top losers in the biotechnology industry, dropping -30.48% yesterday.

Ginkgo Bioworks Holdings shares are trading lower after the company reported worse-than-expected Q4 financial results.

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 dropped -12.85% in the past year. It has overperformed other stocks in the biotech industry by 4 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 28 points higher than the biotech industry average of 15. It passed 3 out of 7 valuation due diligence checks.

Exelixis's stock has gained 17.03% in the past year. It has overperformed other stocks in the biotech industry by 34 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 86, which is 71 points higher than the biotech industry average of 15. It passed 6 out of 7 valuation due diligence checks.

Incyte's stock has gained 38.38% in the past year. It has overperformed other stocks in the biotech industry by 56 percentage points.

62.72% of biotech stocks rated by analysts are a strong buy right now. On average, analysts expect biotech stocks to rise by 66.43% over the next year.

1.5% of biotech stocks have a Zen Rating of A (Strong Buy), 6.64% of biotech stocks are rated B (Buy), 47.32% are rated C (Hold), 34.26% are rated D (Sell), and 10.28% are rated F (Strong Sell).