Sectors & IndustriesHealthcareDrug Manufacturers - Specialty & Generic

Best Pharmaceutical Stocks to Buy Now (2026)

Top pharmaceutical stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best pharmaceutical 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 pharma stocks to buy right now are:

Bausch Health Companies (NYSE:BHC) is the #1 top pharmaceutical stock out of 75 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Bausch Health Companies (NYSE:BHC) is: Value: A, Growth: B, Momentum: C, Sentiment: A, Safety: B, Financials: C, and AI: B.

Bausch Health Companies (NYSE:BHC) has a Due Diligence Score of 9, which is -20 points lower than the pharmaceutical industry average of 29. Although this number is below the industry average, our proven quant model rates BHC as a "A".

BHC passed 3 out of 33 due diligence checks and has weak fundamentals. Bausch Health Companies has seen its stock return 17.4% over the past year, overperforming other pharmaceutical stocks by 117 percentage points.

Bausch Health Companies has an average 1 year price target of $9.00, an upside of 13.07% from Bausch Health Companies's current stock price of $7.96.

Bausch Health Companies stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Bausch Health Companies, 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.

Eton Pharmaceuticals (NASDAQ:ETON) is the #2 top pharmaceutical stock out of 75 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Eton Pharmaceuticals (NASDAQ:ETON) is: Value: B, Growth: B, Momentum: B, Sentiment: B, Safety: D, Financials: A, and AI: D.

Eton Pharmaceuticals (NASDAQ:ETON) has a Due Diligence Score of 54, which is 25 points higher than the pharmaceutical industry average of 29.

ETON passed 19 out of 33 due diligence checks and has strong fundamentals. Eton Pharmaceuticals has seen its stock return 144.94% over the past year, overperforming other pharmaceutical stocks by 245 percentage points.

Eton Pharmaceuticals has an average 1 year price target of $67.50, an upside of 43.16% from Eton Pharmaceuticals's current stock price of $47.15.

Eton Pharmaceuticals stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Eton Pharmaceuticals, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Kamada (NASDAQ:KMDA) is the #3 top pharmaceutical stock out of 75 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Kamada (NASDAQ:KMDA) is: Value: B, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Kamada (NASDAQ:KMDA) has a Due Diligence Score of 59, which is 30 points higher than the pharmaceutical industry average of 29.

KMDA passed 22 out of 38 due diligence checks and has strong fundamentals. Kamada has seen its stock lose -0.58% over the past year, overperforming other pharmaceutical stocks by 99 percentage points.

Out of 10 pharmaceutical stocks that have issued dividends in the past year, the 3 pharmaceutical stocks with the highest dividend yields are:

Supernus Pharmaceuticals (NASDAQ:SUPN) has an annual dividend yield of 30.4%, which is 20 percentage points higher than the pharmaceutical industry average of 10.16%.

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

Indivior Pharmaceuticals (NASDAQ:INDV) has an annual dividend yield of 30.4%, which is 20 percentage points higher than the pharmaceutical industry average of 10.16%.

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

Cumberland Pharmaceuticals (NASDAQ:CPIX) has an annual dividend yield of 29.94%, which is 20 percentage points higher than the pharmaceutical industry average of 10.16%.

Cumberland Pharmaceuticals's dividend payout ratio of -411% indicates that its high dividend yield might not be sustainable for the long-term.

Pharmaceutical stocks were down -4.18% in the last day, and down -3.24% over the last week. Eton Pharmaceuticals was the among the top losers in the drug manufacturers - specialty & generic industry, dropping -7.04% yesterday.

Eton Pharmaceuticals shares are trading higher after the company reported better-than-expected Q3 financial results and issued FY26 guidance above estimates.

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:

Ironwood Pharmaceuticals (NASDAQ:IRWD) 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.

Ironwood Pharmaceuticals has a valuation score of 86, which is 65 points higher than the pharmaceutical industry average of 21. It passed 6 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has gained 95.63% in the past year. It has overperformed other stocks in the pharmaceutical industry by 196 percentage points.

Bausch Health Companies (NYSE:BHC) 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.

Bausch Health Companies has a valuation score of 0, which is -21 points higher than the pharmaceutical industry average of 21. 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 gained 17.4% in the past year. It has overperformed other stocks in the pharmaceutical industry by 117 percentage points.

Amphastar Pharmaceuticals (NASDAQ:AMPH) 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.

Amphastar Pharmaceuticals has a valuation score of 86, which is 65 points higher than the pharmaceutical industry average of 21. It passed 6 out of 7 valuation due diligence checks.

Amphastar Pharmaceuticals's stock has gained 9.28% in the past year. It has overperformed other stocks in the pharmaceutical industry by 109 percentage points.

52.27% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 185.32% over the next year.

13.04% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 17.39% of pharmaceutical stocks are rated B (Buy), 45.65% are rated C (Hold), 15.22% are rated D (Sell), and 8.7% are rated F (Strong Sell).