Sectors & IndustriesHealthcare

Best Healthcare Stocks to Buy Now (2025)

Top healthcare stocks in 2025 ranked by overall Due Diligence Score. See the best healthcare stocks to buy now, according to analyst forecasts for the healthcare sector.

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 healthcare stocks to buy right now are:

Phibro Animal Health (NASDAQ:PAHC) is the #1 top healthcare stock out of 1109 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 20 points higher than the healthcare sector average of 25. It passed 16 out of 38 due diligence checks and has strong fundamentals. Phibro Animal Health has seen its stock return 70.29% over the past year, overperforming other healthcare stocks by 119 percentage points.

Phibro Animal Health has an average 1 year price target of $30.50, a downside of -0.23% from Phibro Animal Health's current stock price of $30.57.

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.

Embecta (NASDAQ:EMBC) is the #2 top healthcare stock out of 1109 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 Embecta (NASDAQ:EMBC) is: Value: A, Growth: A, Momentum: D, Sentiment: B, Safety: D, Financials: A, and AI: A.

Embecta (NASDAQ:EMBC) has a Due Diligence Score of 31, which is 6 points higher than the healthcare sector average of 25. It passed 11 out of 38 due diligence checks and has average fundamentals. Embecta has seen its stock lose -6.1% over the past year, overperforming other healthcare stocks by 42 percentage points.

Embecta has an average 1 year price target of $12.00, a downside of -13.48% from Embecta's current stock price of $13.87.

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

Theravance Biopharma (NASDAQ:TBPH) is the #3 top healthcare stock out of 1109 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 Theravance Biopharma (NASDAQ:TBPH) is: Value: B, Growth: A, Momentum: C, Sentiment: B, Safety: D, Financials: A, and AI: C.

Theravance Biopharma (NASDAQ:TBPH) has a Due Diligence Score of 39, which is 14 points higher than the healthcare sector average of 25. It passed 12 out of 33 due diligence checks and has average fundamentals. Theravance Biopharma has seen its stock return 59.39% over the past year, overperforming other healthcare stocks by 108 percentage points.

Theravance Biopharma has an average 1 year price target of $21.33, an upside of 64.86% from Theravance Biopharma's current stock price of $12.94.

Theravance Biopharma stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Theravance Biopharma, 66.67% have issued a Strong Buy rating, 33.33% 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 71 healthcare stocks that have issued dividends in the past year, the 3 healthcare stocks with the highest dividend yields are:

Simulations Plus (NASDAQ:SLP) has an annual dividend yield of N/A, which is N/A percentage points lower than the healthcare sector average of 1.95%. Simulations Plus's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Simulations Plus's dividend has shown consistent growth over the last 10 years.

Simulations Plus's dividend payout ratio of -1.9% indicates that its dividend yield might not be sustainable for the long-term.

Dr Reddys Laboratories (NYSE:RDY) has an annual dividend yield of N/A, which is N/A percentage points lower than the healthcare sector average of 1.95%. 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.

Select Medical Holdings (NYSE:SEM) has an annual dividend yield of 14.1%, which is 12 percentage points higher than the healthcare sector average of 1.95%. Select Medical Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Select Medical Holdings's dividend has not shown consistent growth over the last 10 years.

Select Medical Holdings's dividend payout ratio of 35.1% indicates that its high dividend yield is sustainable for the long-term.

Healthcare stocks were down -0.19% in the last day, and up 4.59% over the last week. Onemednet was the among the top losers in the healthcare sector, dropping -33.06% yesterday.

OneMedNet shares are trading higher after the company reported a year-over-year increase in Q2 EPS 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 healthcare stocks right now are:

Embecta (NASDAQ:EMBC) is the most undervalued healthcare stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Embecta has a valuation score of 57, which is 41 points higher than the healthcare sector average of 16. It passed 4 out of 7 valuation due diligence checks.

Embecta's stock has dropped -6.1% in the past year. It has overperformed other stocks in the healthcare sector by 42 percentage points.

Harmony Biosciences Holdings (NASDAQ:HRMY) is the second most undervalued healthcare stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Harmony Biosciences Holdings has a valuation score of 57, which is 41 points higher than the healthcare sector average of 16. It passed 4 out of 7 valuation due diligence checks.

Harmony Biosciences Holdings's stock has gained 4.6% in the past year. It has overperformed other stocks in the healthcare sector by 53 percentage points.

Puma Biotechnology (NASDAQ:PBYI) is the third most undervalued healthcare stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Puma Biotechnology has a valuation score of 43, which is 27 points higher than the healthcare sector average of 16. It passed 3 out of 7 valuation due diligence checks.

Puma Biotechnology's stock has gained 116.23% in the past year. It has overperformed other stocks in the healthcare sector by 165 percentage points.

50.6% of healthcare stocks rated by analysts are a strong buy right now. On average, analysts expect healthcare stocks to rise by 44.32% over the next year.

5.45% of healthcare stocks have a Zen Rating of A (Strong Buy), 12.32% of healthcare stocks are rated B (Buy), 42.3% are rated C (Hold), 26.54% are rated D (Sell), and 13.39% are rated F (Strong Sell).