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.

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:

Phibro Animal Health (NASDAQ:PAHC) is the #1 top pharmaceutical stock out of 77 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 Phibro Animal Health (NASDAQ:PAHC) is: Value: A, Growth: A, Momentum: C, Sentiment: A, Safety: B, Financials: C, and AI: A.

Phibro Animal Health (NASDAQ:PAHC) has a Due Diligence Score of 48, which is 21 points higher than the pharmaceutical industry average of 27.

PAHC passed 17 out of 38 due diligence checks and has strong fundamentals. Phibro Animal Health has seen its stock return 34.61% over the past year, overperforming other pharmaceutical stocks by 92 percentage points.

Phibro Animal Health has an average 1 year price target of $21.50, a downside of -9.97% from Phibro Animal Health's current stock price of $23.88.

Phibro Animal Health stock has a consensus Sell recommendation according to Wall Street analysts. Of the 2 analysts covering Phibro Animal Health, 0% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 50% have issued a Strong Sell.

Cumberland Pharmaceuticals (NASDAQ:CPIX) is the #2 top pharmaceutical stock out of 77 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 Cumberland Pharmaceuticals (NASDAQ:CPIX) is: Value: B, Growth: A, Momentum: B, Sentiment: C, Safety: C, Financials: B, and AI: C.

Cumberland Pharmaceuticals (NASDAQ:CPIX) has a Due Diligence Score of 30, which is 3 points higher than the pharmaceutical industry average of 27.

CPIX passed 9 out of 33 due diligence checks and has average fundamentals. Cumberland Pharmaceuticals has seen its stock return 202.08% over the past year, overperforming other pharmaceutical stocks by 259 percentage points.

Kamada (NASDAQ:KMDA) is the #3 top pharmaceutical stock out of 77 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 Kamada (NASDAQ:KMDA) is: Value: C, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: A.

Kamada (NASDAQ:KMDA) has a Due Diligence Score of 53, which is 26 points higher than the pharmaceutical industry average of 27.

KMDA passed 20 out of 38 due diligence checks and has strong fundamentals. Kamada has seen its stock return 46.61% over the past year, overperforming other pharmaceutical stocks by 104 percentage points.

Kamada has an average 1 year price target of $13.00, an upside of 80.56% from Kamada's current stock price of $7.20.

Kamada stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Kamada, 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.

Out of 7 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 4.06%, which is 2 percentage points higher than the pharmaceutical industry average of 1.87%. 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 -15.1% indicates that its high dividend yield might not be sustainable for the long-term.

Perrigo Co (NYSE:PRGO) has an annual dividend yield of 3.18%, which is 1 percentage points higher than the pharmaceutical industry average of 1.87%. 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 -85.6% indicates that its dividend yield might not be sustainable for the long-term.

Kamada (NASDAQ:KMDA) has an annual dividend yield of 2.78%, which is 1 percentage points higher than the pharmaceutical industry average of 1.87%.

Kamada's dividend payout ratio of 71.4% indicates that its dividend yield is sustainable for the long-term.

Pharmaceutical stocks were down -2.05% in the last day, and up 2.36% over the last week. Aurora Cannabis was the among the top losers in the drug manufacturers - specialty & generic industry, dropping -12.82% yesterday.

Aurora Cannabis shares are trading lower after the company announced that earlier reports were incorrect and clarified that it did not enter into an agreement to acquire MedLeaf Therapeutics, nor did it enter a distribution partnership with MediPharm GmbH.

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 0, which is -19 points higher than the pharmaceutical industry average of 19. It passed 0 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 -87.42% in the past year. It has underperformed other stocks in the pharmaceutical industry by -30 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 -19 points higher than the pharmaceutical industry average of 19. 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 -8.17% in the past year. It has overperformed other stocks in the pharmaceutical industry by 49 percentage points.

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 38 points higher than the pharmaceutical industry average of 19. It passed 4 out of 7 valuation due diligence checks.

Collegium Pharmaceutical's stock has dropped -5.54% in the past year. It has overperformed other stocks in the pharmaceutical industry by 51 percentage points.

40% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 40.29% over the next year.

10.71% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 16.07% of pharmaceutical stocks are rated B (Buy), 55.36% are rated C (Hold), 12.5% are rated D (Sell), and 5.36% are rated F (Strong Sell).