Sectors & IndustriesHealthcareDrug Manufacturers - Specialty & Generic

Best Pharmaceutical Stocks to Buy Now (2023)

Top pharmaceutical stocks in 2023 ranked by overall Zen Score. See the best pharmaceutical stocks to buy now, according to analyst forecasts for the drug manufacturers - specialty & generic industry.

According to Zen Score, the 3 best pharma stocks to buy right now are:

Dr Reddys Laboratories (NYSE:RDY) is the top pharmaceutical stock with a Zen Score of 57, which is 30 points higher than the pharmaceutical industry average of 27. It passed 21 out of 38 due diligence checks and has strong fundamentals. Dr Reddys Laboratories has seen its stock lose -7.93% over the past year, overperforming other pharmaceutical stocks by 24 percentage points.

Dr Reddys Laboratories has an average 1 year price target of $67.00, an upside of 26.51% from Dr Reddys Laboratories's current stock price of $52.96.

Dr Reddys Laboratories stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Dr Reddys Laboratories, 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.

Phibro Animal Health (NASDAQ:PAHC) is the second best pharmaceutical stock with a Zen Score of 51, which is 24 points higher than the pharmaceutical industry average of 27. It passed 18 out of 38 due diligence checks and has strong fundamentals. Phibro Animal Health has seen its stock lose -14.63% over the past year, overperforming other pharmaceutical stocks by 17 percentage points.

Phibro Animal Health has an average 1 year price target of $18.33, an upside of 14.65% from Phibro Animal Health's current stock price of $15.99.

Phibro Animal Health stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Phibro Animal Health, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 33.33% have issued a Strong Sell.

Organigram Holdings (NASDAQ:OGI) is the third best pharmaceutical stock with a Zen Score of 50, which is 23 points higher than the pharmaceutical industry average of 27. It passed 16 out of 33 due diligence checks and has strong fundamentals. Organigram Holdings has seen its stock lose -42.58% over the past year, underperforming other pharmaceutical stocks by -11 percentage points.

Organigram Holdings has an average 1 year price target of $2.08, an upside of 133.48% from Organigram Holdings's current stock price of $0.89.

Organigram Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Organigram Holdings, 37.5% have issued a Strong Buy rating, 25% have issued a Buy, 37.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 6 pharmaceutical stocks that have issued dividends in the past year, the 3 pharmaceutical stocks with the highest dividend yields are:

Viatris (NASDAQ:VTRS) has an annual dividend yield of 3.98%, which is 2 percentage points higher than the pharmaceutical industry average of 2.35%. Viatris's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Viatris's dividend has shown consistent growth over the last 10 years.

Viatris's dividend payout ratio of 71.2% indicates that its dividend yield is sustainable for the long-term.

Prophase Labs (NASDAQ:PRPH) has an annual dividend yield of 3.8%, which is 1 percentage points higher than the pharmaceutical industry average of 2.35%.

Prophase Labs's dividend payout ratio of 29.3% indicates that its dividend yield is sustainable for the long-term.

Phibro Animal Health (NASDAQ:PAHC) has an annual dividend yield of 3%, which is 1 percentage points higher than the pharmaceutical industry average of 2.35%. Phibro Animal Health's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Phibro Animal Health's dividend has shown consistent growth over the last 10 years.

Phibro Animal Health's dividend payout ratio of 41.7% indicates that its dividend yield is sustainable for the long-term.

Pharmaceutical stocks were down -0.03% in the last day, and up 2.93% over the last week. Durect was the among the top losers in the drug manufacturers - specialty & generic industry, dropping -9.38% yesterday.

Durect shares are trading lower after the company announced a $10 million registerd direct offering of common stock and warrants.

Based on WallStreetZen's Valuation Score, the 3 most undervalued pharmaceutical stocks right now are:

Acelrx Pharmaceuticals (NASDAQ:ACRX) is the most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Acelrx Pharmaceuticals has a valuation score of 71, which is 44 points higher than the pharmaceutical industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Acelrx Pharmaceuticals's stock has dropped -76.58% in the past year. It has underperformed other stocks in the pharmaceutical industry by -45 percentage points.

Ironwood Pharmaceuticals (NASDAQ:IRWD) is the second most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Ironwood Pharmaceuticals has a valuation score of 71, which is 44 points higher than the pharmaceutical industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has gained 3.33% in the past year. It has overperformed other stocks in the pharmaceutical industry by 35 percentage points.

Organogenesis Holdings (NASDAQ:ORGO) is the third most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Organogenesis Holdings has a valuation score of 71, which is 44 points higher than the pharmaceutical industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Organogenesis Holdings's stock has dropped -62.7% in the past year. It has underperformed other stocks in the pharmaceutical industry by -31 percentage points.