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:

Collegium Pharmaceutical (NASDAQ:COLL) 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 Collegium Pharmaceutical (NASDAQ:COLL) is: Value: A, Growth: B, Momentum: C, Sentiment: B, Safety: C, Financials: B, and AI: A.

Collegium Pharmaceutical (NASDAQ:COLL) has a Due Diligence Score of 46, which is 19 points higher than the pharmaceutical industry average of 27.

COLL passed 16 out of 33 due diligence checks and has strong fundamentals. Collegium Pharmaceutical has seen its stock return 49.48% over the past year, overperforming other pharmaceutical stocks by 63 percentage points.

Collegium Pharmaceutical has an average 1 year price target of $46.67, an upside of 4.94% from Collegium Pharmaceutical's current stock price of $44.47.

Collegium Pharmaceutical stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Collegium Pharmaceutical, 33.33% have issued a Strong Buy rating, 66.67% have issued a Buy, 0% 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 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 Indivior (NASDAQ:INDV) is: Value: B, Growth: B, Momentum: B, Sentiment: A, Safety: B, Financials: B, and AI: C.

Indivior (NASDAQ:INDV) 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 INDV as a "A".

INDV passed 7 out of 33 due diligence checks and has weak fundamentals. Indivior has seen its stock return 211.81% over the past year, overperforming other pharmaceutical stocks by 225 percentage points.

Indivior has an average 1 year price target of $32.50, a downside of -0.31% from Indivior's current stock price of $32.60.

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.

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

Ironwood Pharmaceuticals (NASDAQ:IRWD) has a Due Diligence Score of 19, which is -8 points lower than the pharmaceutical industry average of 27. Although this number is below the industry average, our proven quant model rates IRWD as a "A".

IRWD passed 6 out of 33 due diligence checks and has weak fundamentals. Ironwood Pharmaceuticals has seen its stock lose -16.54% over the past year, underperforming other pharmaceutical stocks by -3 percentage points.

Ironwood Pharmaceuticals has an average 1 year price target of $3.00, a downside of -5.66% from Ironwood Pharmaceuticals's current stock price of $3.18.

Ironwood Pharmaceuticals stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Ironwood 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.

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

Perrigo Co (NYSE:PRGO) has an annual dividend yield of 6.68%, which is 4 percentage points higher than the pharmaceutical industry average of 2.7%. 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 -301.6% indicates that its high dividend yield might not be sustainable for the long-term.

Viatris (NASDAQ:VTRS) has an annual dividend yield of 4.59%, which is 2 percentage points higher than the pharmaceutical industry average of 2.7%. 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 -15.5% indicates that its high dividend yield might not be sustainable for the long-term.

Kamada (NASDAQ:KMDA) has an annual dividend yield of 2.89%, which is the same as the pharmaceutical industry average of 2.7%.

Kamada's dividend payout ratio of 57.1% indicates that its dividend yield is sustainable for the long-term.

Pharmaceutical stocks were down -1.07% in the last day, and down -4.19% over the last week.

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

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 37 points higher than the pharmaceutical industry average of 20. It passed 4 out of 7 valuation due diligence checks.

Bausch Health Companies's stock has dropped -26.13% in the past year. It has underperformed other stocks in the pharmaceutical industry by -13 percentage points.

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 29, which is 9 points higher than the pharmaceutical industry average of 20. It passed 2 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has dropped -16.54% in the past year. It has underperformed other stocks in the pharmaceutical industry by -3 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 43, which is 23 points higher than the pharmaceutical industry average of 20. It passed 3 out of 7 valuation due diligence checks.

Collegium Pharmaceutical's stock has gained 49.48% in the past year. It has overperformed other stocks in the pharmaceutical industry by 63 percentage points.

54.76% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 43.23% over the next year.

26.79% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 8.93% of pharmaceutical stocks are rated B (Buy), 44.64% are rated C (Hold), 16.07% are rated D (Sell), and 3.57% are rated F (Strong Sell).