Sectors & IndustriesHealthcareDrug Manufacturers - Specialty & Generic
Best Pharmaceutical Stocks to Buy Now (2025)
Top pharmaceutical stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best pharmaceutical stocks to buy now. Learn More.

Industry: Drug Manufacturers - Spec...
B
Pharmaceutical is Zen Rated B and is the 37th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Value
Growth
Momentum
Sentiment
Safety
Financials
AI
1w Zen Rating
1m Zen Rating
3m Zen Rating
1y Zen Rating
AMRX
AMNEAL PHARMACEUTICALS INC
ABACCBCBAAA
SUPN
SUPERNUS PHARMACEUTICALS INC
AACCBBBBAAA
PCRX
PACIRA BIOSCIENCES INC
ABBCCBBCABB
HCM
HUTCHMED (CHINA) LTD
ABACBCCCAA
KMDA
KAMADA LTD
ABCCACCBAAA

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Use the proven Zen Ratings quant model to find stocks with high potential to beat the market. Stocks Zen-Rated "A" have beaten the market by +32.52% annually. Learn More

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Pharmaceutical Stocks FAQ

What are the best pharmaceutical 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 pharma stocks to buy right now are:

1. Amneal Pharmaceuticals (NASDAQ:AMRX)


Amneal Pharmaceuticals (NASDAQ:AMRX) is the #1 top pharmaceutical stock out of 78 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 Amneal Pharmaceuticals (NASDAQ:AMRX) is: Value: B, Growth: A, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: B.

Amneal Pharmaceuticals (NASDAQ:AMRX) has a Due Diligence Score of 14, which is -13 points lower than the pharmaceutical industry average of 27. Although this number is below the industry average, our proven quant model rates AMRX as a "A".

AMRX passed 5 out of 33 due diligence checks and has weak fundamentals. Amneal Pharmaceuticals has seen its stock return 26.61% over the past year, overperforming other pharmaceutical stocks by 85 percentage points.

Amneal Pharmaceuticals has an average 1 year price target of $11.33, an upside of 47.95% from Amneal Pharmaceuticals's current stock price of $7.66.

Amneal Pharmaceuticals stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Amneal Pharmaceuticals, 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.

2. Supernus Pharmaceuticals (NASDAQ:SUPN)


Supernus Pharmaceuticals (NASDAQ:SUPN) is the #2 top pharmaceutical stock out of 78 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 Supernus Pharmaceuticals (NASDAQ:SUPN) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: B, and AI: B.

Supernus Pharmaceuticals (NASDAQ:SUPN) has a Due Diligence Score of 64, which is 37 points higher than the pharmaceutical industry average of 27.

SUPN passed 20 out of 33 due diligence checks and has strong fundamentals. Supernus Pharmaceuticals has seen its stock return 7.91% over the past year, overperforming other pharmaceutical stocks by 66 percentage points.

Supernus Pharmaceuticals has an average 1 year price target of $36.00, an upside of 10.84% from Supernus Pharmaceuticals's current stock price of $32.48.

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

3. Pacira Biosciences (NASDAQ:PCRX)


Pacira Biosciences (NASDAQ:PCRX) is the #3 top pharmaceutical stock out of 78 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 Pacira Biosciences (NASDAQ:PCRX) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: B, and AI: C.

Pacira Biosciences (NASDAQ:PCRX) has a Due Diligence Score of 23, which is -4 points lower than the pharmaceutical industry average of 27. Although this number is below the industry average, our proven quant model rates PCRX as a "A".

PCRX passed 7 out of 33 due diligence checks and has weak fundamentals. Pacira Biosciences has seen its stock return 2.48% over the past year, overperforming other pharmaceutical stocks by 61 percentage points.

Pacira Biosciences has an average 1 year price target of $32.80, an upside of 21.93% from Pacira Biosciences's current stock price of $26.90.

Pacira Biosciences stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Pacira Biosciences, 20% have issued a Strong Buy rating, 40% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the pharmaceutical stocks with highest dividends?

Out of 7 pharmaceutical stocks that have issued dividends in the past year, the 3 pharmaceutical stocks with the highest dividend yields are:

1. Siga Technologies (NASDAQ:SIGA)


Siga Technologies (NASDAQ:SIGA) has an annual dividend yield of 10.87%, which is 7 percentage points higher than the pharmaceutical industry average of 3.51%.

Siga Technologies's dividend payout ratio of 72.3% indicates that its high dividend yield is sustainable for the long-term.

2. Perrigo Co (NYSE:PRGO)


Perrigo Co (NYSE:PRGO) has an annual dividend yield of 3.27%, which is the same as the pharmaceutical industry average of 3.51%. Perrigo Co's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Perrigo Co's dividend has shown consistent growth over the last 10 years.

Perrigo Co's dividend payout ratio of -88.6% indicates that its dividend yield might not be sustainable for the long-term.

3. Kamada (NASDAQ:KMDA)


Kamada (NASDAQ:KMDA) has an annual dividend yield of 3.09%, which is the same as the pharmaceutical industry average of 3.51%.

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

Why are pharmaceutical stocks up?

Pharmaceutical stocks were up 2.62% in the last day, and up 6.64% over the last week.

We couldn't find a catalyst for why pharmaceutical stocks are up.

What are the most undervalued pharmaceutical 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 pharmaceutical stocks right now are:

1. Bausch Health Companies (NYSE:BHC)


Bausch Health Companies (NYSE:BHC) is the most undervalued pharmaceutical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bausch Health Companies has a valuation score of 0, which is -16 points higher than the pharmaceutical industry average of 16. It passed 0 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates BHC a Valuation Rating of "A".

Bausch Health Companies's stock has dropped -39.5% in the past year. It has overperformed other stocks in the pharmaceutical industry by 19 percentage points.

2. Ironwood Pharmaceuticals (NASDAQ:IRWD)


Ironwood Pharmaceuticals (NASDAQ:IRWD) is the second most undervalued pharmaceutical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Ironwood Pharmaceuticals has a valuation score of 14, which is -2 points higher than the pharmaceutical industry average of 16. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates IRWD a Valuation Rating of "A".

Ironwood Pharmaceuticals's stock has dropped -87.97% in the past year. It has underperformed other stocks in the pharmaceutical industry by -30 percentage points.

3. Collegium Pharmaceutical (NASDAQ:COLL)


Collegium Pharmaceutical (NASDAQ:COLL) is the third most undervalued pharmaceutical stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Collegium Pharmaceutical has a valuation score of 57, which is 41 points higher than the pharmaceutical industry average of 16. It passed 4 out of 7 valuation due diligence checks.

Collegium Pharmaceutical's stock has dropped -26.9% in the past year. It has overperformed other stocks in the pharmaceutical industry by 31 percentage points.

Are pharmaceutical stocks a good buy now?

47.62% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 47.25% over the next year.

10.71% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 19.64% of pharmaceutical stocks are rated B (Buy), 51.79% are rated C (Hold), 12.5% are rated D (Sell), and 5.36% are rated F (Strong Sell).

What is the average p/e ratio of the drug manufacturers - specialty & generic industry?

The average P/E ratio of the drug manufacturers - specialty & generic industry is 21.23x.
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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.