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: B, Sentiment: A, Safety: B, Financials: C, and AI: B.

Phibro Animal Health (NASDAQ:PAHC) has a Due Diligence Score of 45, which is 18 points higher than the pharmaceutical industry average of 27.

PAHC passed 16 out of 38 due diligence checks and has strong fundamentals. Phibro Animal Health has seen its stock return 51.09% over the past year, overperforming other pharmaceutical stocks by 114 percentage points.

Phibro Animal Health has an average 1 year price target of $30.50, a downside of -4.51% from Phibro Animal Health's current stock price of $31.94.

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

Indivior (NASDAQ:INDV) 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 Indivior (NASDAQ:INDV) is: Value: B, Growth: C, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: C.

Indivior (NASDAQ:INDV) has a Due Diligence Score of 26, which is -1 points lower than the pharmaceutical industry average of 27. Although this number is below the industry average, our proven quant model rates INDV as a "A".

INDV passed 8 out of 33 due diligence checks and has average fundamentals. Indivior has seen its stock return 92.85% over the past year, overperforming other pharmaceutical stocks by 156 percentage points.

Indivior has an average 1 year price target of $20.75, a downside of -13.58% from Indivior's current stock price of $24.01.

Indivior stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Indivior, 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.

Amneal Pharmaceuticals (NASDAQ:AMRX) 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 Amneal Pharmaceuticals (NASDAQ:AMRX) is: Value: B, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: B, and AI: C.

Amneal Pharmaceuticals (NASDAQ:AMRX) has a Due Diligence Score of 37, which is 10 points higher than the pharmaceutical industry average of 27.

AMRX passed 12 out of 33 due diligence checks and has average fundamentals. Amneal Pharmaceuticals has seen its stock return 9.56% over the past year, overperforming other pharmaceutical stocks by 73 percentage points.

Amneal Pharmaceuticals has an average 1 year price target of $11.00, an upside of 18.53% from Amneal Pharmaceuticals's current stock price of $9.28.

Amneal Pharmaceuticals stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst 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.

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

Dr Reddys Laboratories (NYSE:RDY) has an annual dividend yield of N/A, which is N/A percentage points lower than the pharmaceutical industry average of 2.13%. Dr Reddys Laboratories's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Dr Reddys Laboratories's dividend has shown consistent growth over the last 10 years.

Dr Reddys Laboratories's dividend payout ratio of 12.2% indicates that its dividend yield is sustainable for the long-term.

Viatris (NASDAQ:VTRS) has an annual dividend yield of 4.55%, which is 2 percentage points higher than the pharmaceutical industry average of 2.13%. 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 -16.6% indicates that its high dividend yield might not be sustainable for the long-term.

Kamada (NASDAQ:KMDA) has an annual dividend yield of 2.84%, which is 1 percentage points higher than the pharmaceutical industry average of 2.13%.

Kamada's dividend payout ratio of 60.6% indicates that its dividend yield is sustainable for the long-term.

Pharmaceutical stocks were down -1.59% in the last day, and up 0.42% over the last week. Biofrontera was the among the top losers in the drug manufacturers - specialty & generic industry, dropping -4.36% yesterday.

Biofrontera shares are trading higher after the company announced that the final patient in its Phase 2b clinical trial evaluating Ameluz for the treatment of moderate to severe acne vulgaris completed participation. The company expects to receive top-line data in Q1 2026 and will present findings to the FDA in Q3 2026 as the basis for a future Phase III program.

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:

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

Bausch Health Companies's stock has gained 22.28% in the past year. It has overperformed other stocks in the pharmaceutical industry by 86 percentage points.

Emergent Biosolutions (NYSE:EBS) 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.

Emergent Biosolutions has a valuation score of 14, which is -5 points higher than the pharmaceutical industry average of 19. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates EBS a Valuation Rating of "A".

Emergent Biosolutions's stock has dropped -1.29% in the past year. It has overperformed other stocks in the pharmaceutical industry by 62 percentage points.

Siga Technologies (NASDAQ:SIGA) 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.

Siga Technologies has a valuation score of 86, which is 67 points higher than the pharmaceutical industry average of 19. It passed 6 out of 7 valuation due diligence checks.

Siga Technologies's stock has dropped -7.55% in the past year. It has overperformed other stocks in the pharmaceutical industry by 56 percentage points.

47.62% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 30.64% over the next year.

19.64% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 16.07% of pharmaceutical stocks are rated B (Buy), 44.64% are rated C (Hold), 17.86% are rated D (Sell), and 1.79% are rated F (Strong Sell).