Sectors & Industries HealthcareDrug Manufacturers - General
Best General Drug Manufacturer Stocks to Buy Now (2025)
Top general drug manufacturer stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best general drug manufacturer stocks to buy now. Learn More.

Industry: Drug Manufacturers - Gene...

Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

General Drug Manufacturers is Zen Rated A and is the 7th ranked industry out of 145 stock market industries

Ticker	Company	Price	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
JNJ	JOHNSON & JOHNSON	$156.31	$79.97	95.47%	17.25x	14.75x	4.21x	4.81x	1.94x	$20.37B	5.41%	$78.11B	32.45	$389.87B	11.23
GILD	GILEAD SCIENCES INC	$106.54	$27.79	283.37%	280.37x	13.48x	4.62x	6.86x	1.49x	$10.31B	7.76%	$19.33B	15.50	$149.40B	33.69
BMY	BRISTOL MYERS SQUIBB CO	$50.20	$43.36	15.79%	18.73x	7.28x	2.14x	5.88x	0.64x	$13.09B	12.81%	$17.39B	8.55	$141.00B	9.95
NVS	NOVARTIS AG	$113.49	$65.65	72.86%	17.62x	13.27x	4.20x	5.80x	1.39x	$17.70B	7.92%	$38.37B	19.50	$246.56B	9.33
AZN	ASTRAZENECA PLC	$71.79	$41.13	74.55%	28.66x	15.95x	3.25x	5.42x	0.95x	$11.16B	5.01%	$41.04B	13.24	$248.97B	14.08
GSK	GSK PLC	$39.85	$37.13	7.32%	19.59x	9.41x	1.96x	4.37x	0.56x	$7.17B	8.80%	$18.63B	9.11	$99.83B	16.21
ABBV	ABBVIE INC	$195.10	$88.28	121.01%	81.29x	15.88x	6.13x	103.59x	0.94x	$17.83B	5.17%	$3.33B	1.88	$406.04B	28.49
LLY	ELI LILLY & CO	$898.95	$276.60	225.00%	76.44x	40.07x	17.97x	60.06x	1.53x	$3.76B	0.46%	$14.19B	15.76	$882.73B	61.10
GRFS	GRIFOLS SA	$6.95	$21.91	-68.28%	27.15x	7.24x	0.60x	0.73x	0.12x	$357.52M	7.48%	$6.54B	9.51	$14.99B	8.75
BIIB	BIOGEN INC	$121.08	$121.05	0.03%	10.80x	7.82x	1.82x	1.06x	0.75x	$2.60B	14.77%	$16.72B	114.81	$21.98B	8.33
SNY	SANOFI	$54.95	$39.21	40.15%	23.76x	12.44x	2.98x	1.72x	0.75x	$7.65B	5.57%	$80.74B	32.26	$149.72B	12.58
PFE	PFIZER INC	$24.41	$22.44	8.79%	17.19x	8.23x	2.17x	1.57x	0.61x	$9.84B	7.11%	$88.20B	15.57	$201.65B	13.43
AMGN	AMGEN INC	$290.92	$159.37	82.55%	38.18x	14.14x	4.67x	26.59x	0.90x	$10.39B	6.65%	$5.88B	10.94	$204.41B	15.30
MRK	MERCK & CO INC	$85.20	$79.10	7.71%	12.60x	9.53x	3.36x	4.65x	0.75x	$18.10B	8.39%	$46.31B	18.29	$239.09B	9.31
OGN	ORGANON & CO	$12.93	$23.77	-45.61%	3.85x	3.63x	0.52x	7.07x	0.96x	$768.00M	23.11%	$472.00M	1.84	$11.54B	7.19
SCLX	SCILEX HOLDING CO	$4.74	N/A	N/A	-0.24x	-0.33x	0.31x	-0.17x	N/A	$19.35M	108.95%	-$192.64M	-51.42	$74.44M	-1.13
AMRN	AMARIN CORP PLC	$10.76	N/A	N/A	-2.69x	-2.15x	0.97x	0.46x	N/A	-$31.02M	-14.03%	$486.18M	23.66	$109.22M	-1.47
MIRA	MIRA PHARMACEUTICALS INC	$1.16	N/A	N/A	-2.27x	-2.15x	N/A	8.87x	N/A	-$5.56M	-31.03%	$2.20M	0.14	$16.67M	-2.08

General Drug Manufacturer Stocks FAQ

What are the best general drug manufacturer 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 general drug manufacturer stocks to buy right now are:

1. Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson (NYSE:JNJ) is the #1 top general drug manufacturer stock out of 18 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 Johnson & Johnson (NYSE:JNJ) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: A, Financials: B, and AI: B.

Johnson & Johnson (NYSE:JNJ) has a Due Diligence Score of 53, which is 13 points higher than the general drug manufacturer industry average of 40.

JNJ passed 19 out of 38 due diligence checks and has strong fundamentals. Johnson & Johnson has seen its stock return 8.11% over the past year, overperforming other general drug manufacturer stocks by 5 percentage points.

Johnson & Johnson has an average 1 year price target of $168.08, an upside of 7.53% from Johnson & Johnson's current stock price of $156.31.

Johnson & Johnson stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Johnson & Johnson, 16.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Gilead Sciences (NASDAQ:GILD)

Gilead Sciences (NASDAQ:GILD) is the #2 top general drug manufacturer stock out of 18 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 Gilead Sciences (NASDAQ:GILD) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: B.

Gilead Sciences (NASDAQ:GILD) has a Due Diligence Score of 37, which is -3 points lower than the general drug manufacturer industry average of 40. Although this number is below the industry average, our proven quant model rates GILD as a "A".

GILD passed 13 out of 38 due diligence checks and has average fundamentals. Gilead Sciences has seen its stock return 63.4% over the past year, overperforming other general drug manufacturer stocks by 60 percentage points.

Gilead Sciences has an average 1 year price target of $112.11, an upside of 5.22% from Gilead Sciences's current stock price of $106.54.

Gilead Sciences stock has a consensus Buy recommendation according to Wall Street analysts. Of the 19 analysts covering Gilead Sciences, 42.11% have issued a Strong Buy rating, 26.32% have issued a Buy, 31.58% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Bristol Myers Squibb Co (NYSE:BMY)

Bristol Myers Squibb Co (NYSE:BMY) is the #3 top general drug manufacturer stock out of 18 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 Bristol Myers Squibb Co (NYSE:BMY) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: B.

Bristol Myers Squibb Co (NYSE:BMY) has a Due Diligence Score of 50, which is 10 points higher than the general drug manufacturer industry average of 40.

BMY passed 18 out of 38 due diligence checks and has strong fundamentals. Bristol Myers Squibb Co has seen its stock return 14.25% over the past year, overperforming other general drug manufacturer stocks by 11 percentage points.

Bristol Myers Squibb Co has an average 1 year price target of $60.00, an upside of 19.52% from Bristol Myers Squibb Co's current stock price of $50.20.

Bristol Myers Squibb Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 13 analysts covering Bristol Myers Squibb Co, 23.08% have issued a Strong Buy rating, 7.69% have issued a Buy, 61.54% have issued a hold, while 0% have issued a Sell rating, and 7.69% have issued a Strong Sell.

What are the general drug manufacturer stocks with highest dividends?

Out of 11 general drug manufacturer stocks that have issued dividends in the past year, the 3 general drug manufacturer stocks with the highest dividend yields are:

1. Organon & Co (NYSE:OGN)

Organon & Co (NYSE:OGN) has an annual dividend yield of 4.33%, which is 1 percentage points higher than the general drug manufacturer industry average of 3.24%.

Organon & Co's dividend payout ratio of 25% indicates that its high dividend yield is sustainable for the long-term.

2. Gsk (NYSE:GSK)

Gsk (NYSE:GSK) has an annual dividend yield of 3.89%, which is 1 percentage points higher than the general drug manufacturer industry average of 3.24%. Gsk's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Gsk's dividend has not shown consistent growth over the last 10 years.

Gsk's dividend payout ratio of 76.2% indicates that its dividend yield is sustainable for the long-term.

3. Merck & Co (NYSE:MRK)

Merck & Co (NYSE:MRK) has an annual dividend yield of 3.71%, which is the same as the general drug manufacturer industry average of 3.24%. Merck & Co's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Merck & Co's dividend has shown consistent growth over the last 10 years.

Merck & Co's dividend payout ratio of 46.2% indicates that its dividend yield is sustainable for the long-term.

Why are general drug manufacturer stocks up?

General drug manufacturer stocks were up 1.17% in the last day, and up 6.08% over the last week. Gsk was the among the top gainers in the drug manufacturers - general industry, gaining 2.26% yesterday.

GSK shares are trading higher after the company reported better-than-expected Q1 financial results and raised its FY25 adjusted EPS guidance. Also, the company raised its FY25 sales guidance above estimates.

What are the most undervalued general drug manufacturer 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 general drug manufacturer stocks right now are:

1. Biogen (NASDAQ:BIIB)

Biogen (NASDAQ:BIIB) is the most undervalued general drug manufacturer stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Biogen has a valuation score of 86, which is 42 points higher than the general drug manufacturer industry average of 44. It passed 6 out of 7 valuation due diligence checks.

Biogen's stock has dropped -43.64% in the past year. It has underperformed other stocks in the general drug manufacturer industry by -47 percentage points.

2. Organon & Co (NYSE:OGN)

Organon & Co (NYSE:OGN) is the second most undervalued general drug manufacturer stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Organon & Co has a valuation score of 57, which is 13 points higher than the general drug manufacturer industry average of 44. It passed 4 out of 7 valuation due diligence checks.

Organon & Co's stock has dropped -30.52% in the past year. It has underperformed other stocks in the general drug manufacturer industry by -34 percentage points.

3. Merck & Co (NYSE:MRK)

Merck & Co (NYSE:MRK) is the third most undervalued general drug manufacturer stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Merck & Co has a valuation score of 57, which is 13 points higher than the general drug manufacturer industry average of 44. It passed 4 out of 7 valuation due diligence checks.

Merck & Co's stock has dropped -34.07% in the past year. It has underperformed other stocks in the general drug manufacturer industry by -37 percentage points.

Are general drug manufacturer stocks a good buy now?

46.15% of general drug manufacturer stocks rated by analysts are a buy right now. On average, analysts expect general drug manufacturer stocks to rise by 45.4% over the next year.

16.67% of general drug manufacturer stocks have a Zen Rating of A (Strong Buy), 33.33% of general drug manufacturer stocks are rated B (Buy), 38.89% are rated C (Hold), 11.11% are rated D (Sell), and 0% are rated F (Strong Sell).

What is the average p/e ratio of the drug manufacturers - general industry?

The average P/E ratio of the drug manufacturers - general industry is 54.95x.

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.

General Drug Manufacturer Stocks FAQ

1. Johnson & Johnson (NYSE:JNJ)

2. Gilead Sciences (NASDAQ:GILD)

3. Bristol Myers Squibb Co (NYSE:BMY)

1. Organon & Co (NYSE:OGN)

2. Gsk (NYSE:GSK)

3. Merck & Co (NYSE:MRK)

1. Biogen (NASDAQ:BIIB)

2. Organon & Co (NYSE:OGN)

3. Merck & Co (NYSE:MRK)

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