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 74 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: B, Safety: B, Financials: C, and AI: B.

Bausch Health Companies (NYSE:BHC) has a Due Diligence Score of 6, which is -21 points lower than the pharmaceutical industry average of 27. Although this number is below the industry average, our proven quant model rates BHC as a "A".

BHC passed 2 out of 33 due diligence checks and has weak fundamentals. Bausch Health Companies has seen its stock lose -11.58% over the past year, overperforming other pharmaceutical stocks by 83 percentage points.

Bausch Health Companies has an average 1 year price target of $8.00, an upside of 26.18% from Bausch Health Companies's current stock price of $6.34.

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.

Indivior Pharmaceuticals (NASDAQ:INDV) is the #2 top pharmaceutical stock out of 74 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 Indivior Pharmaceuticals (NASDAQ:INDV) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: A, and AI: C.

Indivior Pharmaceuticals (NASDAQ:INDV) has a Due Diligence Score of 47, which is 20 points higher than the pharmaceutical industry average of 27.

INDV passed 16 out of 33 due diligence checks and has strong fundamentals. Indivior Pharmaceuticals has seen its stock return 66.39% over the past year, overperforming other pharmaceutical stocks by 161 percentage points.

Indivior Pharmaceuticals has an average 1 year price target of $43.00, an upside of 12.51% from Indivior Pharmaceuticals's current stock price of $38.22.

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

Kamada (NASDAQ:KMDA) is the #3 top pharmaceutical stock out of 74 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: A, Safety: C, Financials: C, and AI: B.

Kamada (NASDAQ:KMDA) has a Due Diligence Score of 47, which is 20 points higher than the pharmaceutical industry average of 27.

KMDA passed 18 out of 38 due diligence checks and has strong fundamentals. Kamada has seen its stock lose -1.63% over the past year, overperforming other pharmaceutical stocks by 93 percentage points.

Out of 9 pharmaceutical stocks that have issued dividends in the past year, the 3 pharmaceutical stocks with the highest dividend yields are:

Cumberland Pharmaceuticals (NASDAQ:CPIX) has an annual dividend yield of 37.97%, which is 29 percentage points higher than the pharmaceutical industry average of 8.79%.

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

Siga Technologies (NASDAQ:SIGA) has an annual dividend yield of 20.83%, which is 12 percentage points higher than the pharmaceutical industry average of 8.79%.

Siga Technologies's dividend payout ratio of -1,500% indicates that its high dividend yield might not be sustainable for the long-term.

Perrigo Co (NYSE:PRGO) has an annual dividend yield of 6.78%, which is -2 percentage points lower than the pharmaceutical industry average of 8.79%. 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 -9.3% indicates that its high dividend yield might not be sustainable for the long-term.

Pharmaceutical stocks were down -0.42% in the last day, and down -2.73% over the last week. Evotec Se was the among the top losers in the drug manufacturers - specialty & generic industry, dropping -7.76% yesterday.

Evotec shares are trading lower after the company reported worse-than-expected Q2 financial results.

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 69 points higher than the pharmaceutical industry average of 17. It passed 6 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has gained 274.31% in the past year. It has overperformed other stocks in the pharmaceutical industry by 369 percentage points.

Amphastar Pharmaceuticals (NASDAQ:AMPH) 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.

Amphastar Pharmaceuticals has a valuation score of 71, which is 54 points higher than the pharmaceutical industry average of 17. It passed 5 out of 7 valuation due diligence checks.

Amphastar Pharmaceuticals's stock has dropped -33.79% in the past year. It has overperformed other stocks in the pharmaceutical industry by 61 percentage points.

Zoetis (NYSE:ZTS) 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.

Zoetis has a valuation score of 29, which is 12 points higher than the pharmaceutical industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Zoetis's stock has dropped -50.25% in the past year. It has overperformed other stocks in the pharmaceutical industry by 45 percentage points.

53.85% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 43.94% over the next year.

11.32% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 24.53% of pharmaceutical stocks are rated B (Buy), 41.51% are rated C (Hold), 18.87% are rated D (Sell), and 3.77% are rated F (Strong Sell).