Best Biotech Stocks to Buy for December 2025

Kevin Voigt Updated on December 12, 2025

VCYTNBIXFOLDKROSARQT

The biotech sector continues to draw intense investor interest — from innovation in gene editing and mRNA to breakthroughs in rare disease therapies. But with high risk comes high reward, and separating long-term winners from speculative bets is more important than ever.

Are Biotech Stocks a Good Investment Long-Term?

Biotech companies can deliver extraordinary upside when their clinical programs succeed — but the path is fraught. Long-term investing in biotech often hinges on believing in a company’s pipeline, cash runway and capacity to navigate regulatory hurdles. Many top biotechs have matured past early-stage risk, with commercial revenues and established R&D engines, making them more resilient in volatile markets.

Meanwhile, broader trends like aging populations, precision medicine, and platform technologies (like gene therapy and mRNA) bolster the long-term case. However, interest rate swings, clinical failures and capital burn remain real threats. For investors with sufficient time horizon and risk tolerance, biotechs offer a compelling opportunity.

Here, we analyze and rank the best biotech stocks to buy now ranked on a blend Zacks Rank signals, Style Scores and fundamentals:

5 Top Biotech Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
Veracyte (VCYT)	26.56%	26.15	$42.21	38.87%	14.09%
Neurocrine Biosciences (NBIX)	1.60%	21.48	$141.70	110.51%	21.39%
Amicus Therapeutics (FOLD)	33.46%	30.68	$11.00	47.92%	19.00%
Keros Therapeutics (KROS)	37.22%	9.56	$20.83	145.03%	6,809.40%
Arcutis Biotherapeutics (ARQT)	62.10%	NA	$28.34	79.02%	83.29%

*Updated on December 17, 2025.

Veracyte (VCYT)

$42.21 USD -1.01 (-2.34%)

3-Year Stock Price Performance

Premium Research for VCYT

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Bottom 40% (144 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

F Value B Growth C Momentum C VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $3.34 B (Mid Cap)
Projected EPS Growth:38.66%
Last Quarter EPS Growth:22.58%
Last EPS Surprise:59.38%
Next EPS Report dateFeb. 23, 2026

Our Take:

Veracyte is a genomic diagnostics company that applies advanced transcriptomics to improve and personalize cancer and thyroid disease decisions.

Q3 2025 results showed double-digit testing revenue growth, expanding adjusted EBITDA, and a guidance raise, reflecting broadening adoption across its portfolio and disciplined cost control. The company’s scale in targeted oncology diagnostics and steady product updates, such as Afirma enhancements, reinforce durable share gains and pricing power.

A Zacks Rank 1 (Strong Buy) signals positive estimate revisions. Style Score of A for Momentum and B for Growth align with accelerating topline and operating leverage, while an F Value score suggests shares command a premium for quality and category leadership rather than traditional value appeal. On the Price, Consensus & EPS Surprise chart, 2026–2027 EPS lines trend higher after a long trough, and the stock’s rebound has tracked those rising estimates, though pullbacks around quarterly updates point to typical diagnostics volatility.

Neurocrine Biosciences (NBIX)

$141.70 USD -7.04 (-4.73%)

3-Year Stock Price Performance

Premium Research for NBIX

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 32% (78 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value B Growth D Momentum C VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 15.61%

Market Cap: $15.43 B (Large Cap)
Projected EPS Growth:110.64%
Last Quarter EPS Growth:92.45%
Last EPS Surprise:29.11%
Next EPS Report date: Feb. 5, 2026

Our Take:

Neurocrine develops neuroscience medicines, led by INGREZZA for tardive dyskinesia and Huntington’s chorea, and CRENESSITY (crinecerfont) for classic congenital adrenal hyperplasia.

In the latest quarter, total net product sales increased 28% year over year, with INGREZZA delivering another record quarter and CRENESSITY launching strongly, supported by broad early reimbursement. The combination gives Neurocrine two meaningful commercial pillars, robust cash generation, and resources to advance a deep neurology pipeline, even as payer dynamics and a DOJ inquiry remain watch points.

A Zacks Rank #1 reflects upward estimate revisions. Style Score of B for Growth fits with sustained demand and pipeline progress, while C for Value and Momentum reflects a non-bargain multiple and uneven reactions. On the NBIX chart, the stock has consolidated after swings around guidance, but rising 2026–2027 EPS curves and a recent price turn higher suggest improving sentiment as CRENESSITY builds.

Amicus Therapeutics (FOLD)

$11.00 USD +0.11 (1.01%)

3-Year Stock Price Performance

Premium Research for FOLD

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 37% (89 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value C Growth B Momentum D VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$3.05 B (Mid Cap)
Projected EPS Growth:50.00%
Last Quarter EPS Growth:320.00%
Last EPS Surprise: 41.67%
Next EPS Report date: Feb. 18, 2026

Our Take:

Amicus develops and commercializes rare-disease medicines, led by Galafold for Fabry disease and the two-component therapy Pombiliti + Opfolda for late-onset Pompe.

The company delivered another constructive quarter. Revenue rose in the high teens, and Amicus reached GAAP profitability, driven by steady Galafold growth and strong Pombiliti + Opfolda uptake across new markets. Management reiterated guidance and highlighted continued adoption across geographies, encouraging a business now funding its pipeline from operations. Key watch items are reimbursement pacing and Pompe capacity.

A Zacks Rank #1 captures positive revisions. The Style Score of A for Momentum underscores supportive price action, while C for Growth and D for Value remind that execution must stay tight to sustain the multiple. On the chart, 2026–2027 EPS estimates inflect meaningfully higher, and the share price has followed those rising lines, albeit with sharp moves around quarterly updates.

Keros Therapeutics (KROS)

$20.83 USD -0.70 (-3.25%)

3-Year Stock Price Performance

Premium Research for KROS

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 37% (89 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value A Growth C Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$660.81 M (Small Cap)
Projected EPS Growth: 145.00%
Last Quarter EPS Growth:76.32%
Last EPS Surprise:83.78%
Next EPS Report date:Feb. 25, 2026

Our Take:

Keros is a clinical-stage biotech advancing TGF-β-pathway modulators for hematologic and neuromuscular disorders, including elritercept and KER-065. It has now partnered globally with Takeda to advance elritercept, and the deal delivered a $200 million upfront earlier this year.

In its latest update, Keros sharply narrowed losses versus last year, aided by collaboration revenue, and ended the quarter with a robust cash position, providing runway to progress KER-065 toward Phase 2 in Duchenne muscular dystrophy and continue mid-stage studies in blood disorders. Clinical and partnership execution are the key catalysts from here.

A Zacks Rank #1 with Style Scores of A for Value and Growth and B for Momentum indicates attractive estimate trends and balance-sheet support. On the KROS chart, the stock has climbed while out-year EPS lines stabilize after a dip, a constructive setup that still carries typical trial risk and sensitivity to data readouts.

Arcutis Biotherapeutics (ARQT)

$28.34 USD -0.19 (-0.67%)

3-Year Stock Price Performance

Premium Research for ARQT

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Buy 2

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 37% (89 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value B Growth C Momentum C VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$3.61 B (Mid Cap)
Projected EPS Growth: 79.31%
Last Quarter EPS Growth:146.15%
Last EPS Surprise:160.00%
Next EPS Report date:Feb. 24, 2026

Our Take:

Arcutis is a dermatology-focused biopharma commercializing ZORYVE (roflumilast) foam and cream across psoriasis, atopic dermatitis, and seborrheic dermatitis.

Q3 2025 marked a clear inflection with ZORYVE's net product revenue reaching about $99 million, up 22% sequentially and 122% year over year, and Arcutis posted its first quarterly profit while expanding labels into pediatrics. Management outlined a sustainability plan and issued a stronger sales outlook. The trajectory points to durable penetration in steroid-sparing topical care with additional lifecycle indications supporting growth, albeit with execution and competition risks.

A Zacks Rank #2 (Buy) with Style Scores of B for Growth and Momentum signals improving estimates and constructive sentiment, while a D Value score flags limited statistical cheapness after the rally. On the chart, 2026–2027 EPS lines moved sharply higher and price followed, with spikes around earnings illustrating above-average volatility typical for early commercial stories.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

Selections for Best Biotech Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. For this list, only companies that have average daily trading volumes of 100,000 shares or more of 135 biotech companies listed on the New York Stock Exchange or Nasdaq. All information is current as of market open, Dec. 12, 2025.

General Biotech Investment Questions

What Are Biotech Stocks?

Biotech stocks are shares of companies that use biological systems and organisms to develop new drugs, therapies, and diagnostics. These firms invest heavily in research & development and often carry greater risk than traditional pharmaceutical companies.

Types of Biotech Stocks

Platform biotechs: Focus on enabling technologies (e.g., mRNA, gene editing, synthetic biology).
Therapeutic biotechs: Develop specific drug candidates (e.g., rare disease, oncology).
Service biotechs: Provide research tools, reagents, or contract research services.

What Are the Benefits of Buying Biotech Stocks?

High upside: Successful trials or approvals can lead to big gains.
Innovative exposure: Access to cutting-edge science (e.g., gene therapy).
Diversification: Biotech can be a non-cyclical growth lever in a portfolio.
Partnering potential: Smaller biotech firms are often acquired by larger pharma.

What Are the Risks of Buying Biotech Stocks?

Clinical risk: Many drugs fail in trials
Cash burn: R&D is expensive, and many biotechs depend on funding.
Regulatory risk: FDA decisions can make or break a company.
Volatility: Stock prices swing wildly on news.

Biotech Stocks vs. Biotech ETFs

Stocks: Higher potential reward, but higher risk and volatility
ETFs: Diversified exposure, smoother ride, less binary outcomes

Which is right depends on your risk tolerance and conviction in individual companies.

Why Are Biotech Stocks So Volatile?

Clinical trial outcomes are binary (success/failure).
Regulatory approvals depend on strict criteria.
Biotechs often raise capital, diluting shareholders.
News-driven: trial results, partnership deals, or FDA news can swing sentiment.

Is It Too Late to Invest in Biotech Stocks?

Not necessarily. While some biotechs (especially large-caps) may look fully valued, many smaller, clinical-stage companies still offer asymmetric upside. Plus, emerging trends — gene editing, synthetic biology, AI-driven drug discovery — continue to open new frontiers.

Best Biotech ETFs

Not all investors want to take on the risk of single biotechs. Below are some top ETFs that offer diversified exposure:

iShares Biotechnology ETF (IBB): Focuses on large-cap biotech names, offering lower volatility compared to smaller biotechs.
SPDR S&P Biotech ETF (XBI): Equal-weighted, which means more exposure to mid- and small-cap biotech companies — higher risk, potentially higher reward.
VanEck Biotech ETF (BBH): Concentrated in major pure-play biotech names.

These ETFs help mitigate the binary risk inherent in individual biotech names by spreading exposure across many companies.

Biotech Stocks Trends and Forecast

What Biotech Stocks Could Benefit from New FDA Approvals?

Sarepta (SRPT): Pipeline in DMD and other neuromuscular disorders.
Beam (BEAM): Base-editing therapies could attract regulatory attention as clinical data matures.
Arcellx: Its CAR-T programs (e.g., anito-cel) could hit registrational milestones soon.

Which Biotech Firms Are Leading in Gene Editing or mRNA?

Beam Therapeutics: Base editing platform.
CRISPR Therapeutics / Vertex: CRISPR-based therapies.
Moderna: mRNA-based vaccines and therapies.

What Are the Most Promising Biotech Trends for 2025/2026?

Base editing and next-gen CRISPR.
Synthetic biology for therapeutics.
Precision medicine for rare diseases.
AI-driven drug discovery.
Cell and gene therapies for “undruggable” conditions.

How Does Interest Rate Policy Affect Biotech Valuations?

Higher interest rates make future cash flows less valuable, which disproportionately affects pre-commercial biotech companies. Biotechs with strong cash reserves, recurring revenues, or partnerships may weather a high-rate environment better than early-stage names.

What Startups Could Be the Next Big Biotech Breakout?

Some emerging companies to watch include those in base editing (like Beam) or synthetic biology (like Twist Bioscience). Also, small gene therapy firms that prove safety and efficacy could be acquisition targets.

How to Select Biotech Stocks

How to Evaluate a Biotech Company’s Pipeline

Examine clinical trial phases and data (Phase 1–3).
Check regulatory designations (Orphan, Fast Track, Breakthrough).
Assess manufacturing strategy (can they scale?)
Review partnerships with big pharma.

What Financial Metrics Should I Look at When Selecting Biotech Stocks?

Cash runway — Months until they need to raise capital.
Burn rate — How fast they spend R&D cash?
Debt levels — To help understand leverage risk.
Revenue sources — If any (e.g., royalties, partnerships).
Valuation multiples — P/E for commercial companies, or price-to-cash for R&D firms.

Which Biotech Companies Are Using AI for Drug Discovery?

Several biotech firms now leverage AI to speed up target identification, optimize molecules, and predict clinical success. While specific names vary, more platform-focused biotechs (especially in synthetic biology and precision medicine) are adopting AI broadly.

Advanced or Thematic Biotech Investing

Best Gene Therapy, Immunotherapy, or Synthetic Biology Stocks

Gene Therapy: Beam (base editing), Sarepta (DMD)
Immunotherapy/CAR-T: Arcellx (anito-cel).
Synthetic Biology: Twist Bioscience (DNA synthesis).

Top AI-Driven Biotech Companies to Watch

Companies combining AI with biology to accelerate drug development are particularly exciting. Though many remain private, public players using AI in drug discovery or platform development may include synthetic biology firms and next-gen therapeutic companies.

Small-Cap vs. Large-Cap Biotech Investing Strategies

Small-Cap: Higher risk/reward; ideal for speculative, event-driven plays.
Large-Cap: More stability, some revenue streams, diversified pipelines.
Balanced Approach: Use ETFs for broad exposure + pick 1–2 individual names for high conviction.

How FDA Approval Cycles Impact Biotech Valuations

Each clinical milestone (Phase 2 readout, Phase 3 initiation, NDA/BLA filing) can trigger major revaluations. Investors often build models around key FDA dates, trial data, and partner commitments. Failure or delay can lead to steep losses; success can lead to multi-bagger returns.