Sectors & IndustriesHealthcareDrug Manufacturers - Specialty & Generic

Best Pharmaceutical Stocks to Buy Now (2022)

Top pharmaceutical stocks in 2022 ranked by overall Zen Score. See the best pharmaceutical stocks to buy now, according to analyst forecasts for the drug manufacturers - specialty & generic industry.

According to Zen Score, the 3 best pharma stocks to buy right now are:

Viatris (NASDAQ:VTRS) is the top pharmaceutical stock with a Zen Score of 61, which is 32 points higher than the pharmaceutical industry average of 29. It passed 21 out of 38 due diligence checks and has strong fundamentals. Viatris has seen its stock lose -37.95% over the past year, overperforming other pharmaceutical stocks by 2 percentage points.

Viatris has an average 1 year price target of $11.80, an upside of 37.21% from Viatris's current stock price of $8.60.

Viatris stock has a consensus Sell recommendation according to Wall Street analysts. Of the 6 analysts covering Viatris, 0% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 33.33% have issued a Strong Sell.

Ironwood Pharmaceuticals (NASDAQ:IRWD) is the second best pharmaceutical stock with a Zen Score of 58, which is 29 points higher than the pharmaceutical industry average of 29. It passed 18 out of 33 due diligence checks and has strong fundamentals. Ironwood Pharmaceuticals has seen its stock lose -21.68% over the past year, overperforming other pharmaceutical stocks by 18 percentage points.

Ironwood Pharmaceuticals has an average 1 year price target of $14.33, an upside of 38.22% from Ironwood Pharmaceuticals's current stock price of $10.37.

Ironwood Pharmaceuticals stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ironwood Pharmaceuticals, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dr Reddys Laboratories (NYSE:RDY) is the third best pharmaceutical stock with a Zen Score of 58, which is 29 points higher than the pharmaceutical industry average of 29. It passed 22 out of 38 due diligence checks and has strong fundamentals. Dr Reddys Laboratories has seen its stock lose -19.88% over the past year, overperforming other pharmaceutical stocks by 20 percentage points.

Dr Reddys Laboratories has an average 1 year price target of $69.00, an upside of 32.13% from Dr Reddys Laboratories's current stock price of $52.22.

Dr Reddys Laboratories stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Dr Reddys Laboratories, 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 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 5.47%, which is 3 percentage points higher than the pharmaceutical industry average of 2.49%. 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 73% indicates that its high dividend yield is sustainable for the long-term.

Phibro Animal Health (NASDAQ:PAHC) has an annual dividend yield of 3.64%, which is 1 percentage points higher than the pharmaceutical industry average of 2.49%. Phibro Animal Health's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Phibro Animal Health's dividend has shown consistent growth over the last 10 years.

Phibro Animal Health's dividend payout ratio of 39.7% indicates that its dividend yield is sustainable for the long-term.

Perrigo Co (NYSE:PRGO) has an annual dividend yield of 2.84%, which is the same as the pharmaceutical industry average of 2.49%. 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 -114.9% indicates that its dividend yield might not be sustainable for the long-term.

Pharmaceutical stocks were down -1.17% in the last day, and down -0.22% over the last week.

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

Based on WallStreetZen's Valuation Score, the 3 most undervalued pharmaceutical stocks right now are:

Viatris (NASDAQ:VTRS) is the most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Viatris has a valuation score of 86, which is 55 points higher than the pharmaceutical industry average of 31. It passed 6 out of 7 valuation due diligence checks.

Viatris's stock has dropped -37.95% in the past year. It has overperformed other stocks in the pharmaceutical industry by 2 percentage points.

Ironwood Pharmaceuticals (NASDAQ:IRWD) is the second most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Ironwood Pharmaceuticals has a valuation score of 86, which is 55 points higher than the pharmaceutical industry average of 31. It passed 6 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has dropped -21.68% in the past year. It has overperformed other stocks in the pharmaceutical industry by 18 percentage points.

Acelrx Pharmaceuticals (NASDAQ:ACRX) is the third most undervalued pharmaceutical stock based on WallStreetZen's Valuation Score. Acelrx Pharmaceuticals has a valuation score of 71, which is 40 points higher than the pharmaceutical industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Acelrx Pharmaceuticals's stock has dropped -79.42% in the past year. It has underperformed other stocks in the pharmaceutical industry by -39 percentage points.