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:

Eton Pharmaceuticals (NASDAQ:ETON) is the #1 top pharmaceutical stock out of 75 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 Eton Pharmaceuticals (NASDAQ:ETON) is: Value: B, Growth: A, Momentum: A, Sentiment: A, Safety: D, Financials: A, and AI: C.

Eton Pharmaceuticals (NASDAQ:ETON) has a Due Diligence Score of 54, which is 27 points higher than the pharmaceutical industry average of 27.

ETON passed 19 out of 33 due diligence checks and has strong fundamentals. Eton Pharmaceuticals has seen its stock return 243.27% over the past year, overperforming other pharmaceutical stocks by 337 percentage points.

Eton Pharmaceuticals has an average 1 year price target of $67.50, an upside of 12.69% from Eton Pharmaceuticals's current stock price of $59.90.

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

Bausch Health Companies (NYSE:BHC) is the #2 top pharmaceutical stock out of 75 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 -8.03% over the past year, overperforming other pharmaceutical stocks by 86 percentage points.

Bausch Health Companies has an average 1 year price target of $9.00, an upside of 33.14% from Bausch Health Companies's current stock price of $6.76.

Bausch Health Companies stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst 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 #3 top pharmaceutical stock out of 75 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 53, which is 26 points higher than the pharmaceutical industry average of 27.

INDV passed 18 out of 33 due diligence checks and has strong fundamentals. Indivior Pharmaceuticals has seen its stock return 41.18% over the past year, overperforming other pharmaceutical stocks by 135 percentage points.

Indivior Pharmaceuticals has an average 1 year price target of $43.00, an upside of 23.46% from Indivior Pharmaceuticals's current stock price of $34.83.

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.

Out of 8 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 22.22%, which is 17 percentage points higher than the pharmaceutical industry average of 4.8%.

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

Perrigo Co (NYSE:PRGO) has an annual dividend yield of 6.1%, which is 1 percentage points higher than the pharmaceutical industry average of 4.8%. 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.

Kamada (NASDAQ:KMDA) has an annual dividend yield of 5.07%, which is the same as the pharmaceutical industry average of 4.8%.

Kamada's dividend payout ratio of 65.7% indicates that its high dividend yield is sustainable for the long-term.

Pharmaceutical stocks were down -0.74% in the last day, and down -0.62% 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:

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 71, which is 55 points higher than the pharmaceutical industry average of 16. It passed 5 out of 7 valuation due diligence checks.

Ironwood Pharmaceuticals's stock has gained 245.97% in the past year. It has overperformed other stocks in the pharmaceutical industry by 340 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 43, which is 27 points higher than the pharmaceutical industry average of 16. It passed 3 out of 7 valuation due diligence checks.

Amphastar Pharmaceuticals's stock has dropped -18.88% in the past year. It has overperformed other stocks in the pharmaceutical industry by 75 percentage points.

Bausch Health Companies (NYSE:BHC) 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.

Bausch Health Companies has a valuation score of 0, which is -16 points higher than the pharmaceutical industry average of 16. 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 -8.03% in the past year. It has overperformed other stocks in the pharmaceutical industry by 86 percentage points.

51.22% of pharmaceutical stocks rated by analysts are a strong buy right now. On average, analysts expect pharmaceutical stocks to rise by 40.39% over the next year.

11.11% of pharmaceutical stocks have a Zen Rating of A (Strong Buy), 25.93% of pharmaceutical stocks are rated B (Buy), 38.89% are rated C (Hold), 18.52% are rated D (Sell), and 5.56% are rated F (Strong Sell).