Best Biotech Stocks to Buy for December 2025

Kevin Voigt Updated on December 4, 2025

VCYTNBIXKROSFOLDARQT

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)	54.93%	28.94	$47.41	38.66%	14.07%
Neurocrine Biosciences (NBIX)	7.58%	23.14	$154.22	99.61%	21.39%
Keros Therapeutics (KROS)	15.65%	8.04	$20.27	145.03%	6,809.40%
Amicus Therapeutics (FOLD)	23.17%	27.55	$9.95	47.92%	19.00%
Arcutis Biotherapeutics (ARQT)	70.52%	NA	$31.16	79.02%	83.29%

*Updated on December 4, 2025.

Veracyte (VCYT)

$47.41 USD -0.34 (-0.71%)

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 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% 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	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

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 40% (97 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 19% (3 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 A 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: $3.77 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 develops and commercializes genomic tests that help physicians make more precise cancer and specialty disease diagnoses, anchoring its franchise in thyroid, breast, and prostate oncology.

Fundamentals look durable: the latest quarter showed strong testing-revenue growth and expanding adjusted EBITDA, and management raised full-year revenue and profitability guidance, evidence that the platform is scaling across indications and geographies. New product iterations and clinical evidence continue to widen the moat around Afirma and other assays.

A Zacks Rank #1 (Strong Buy) reflects positive estimate revisions, while Style Scores of F for Value and B for Growth frame the setup as a growth-led story rather than a valuation call, while an A Momentum score supports near-term technical sponsorship. On the Price, Consensus & EPS Surprise chart, EPS lines for 2026–2027 have stepped higher as the stock has rebounded, with brief dips around earnings that quickly retraced, an encouraging setup for revision-led follow-through.

Neurocrine Biosciences (NBIX)

$154.22 USD +2.26 (1.49%)

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 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% 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	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

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 29% (69 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 19% (3 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 F 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: -5.70%

Market Cap: $15.15 B (Large Cap)
Projected EPS Growth:99.70%
Last Quarter EPS Growth:92.45%
Last EPS Surprise:29.11%
Next EPS Report date: Feb. 5, 2026

Our Take:

Neurocrine is a neuroscience-focused biopharma company led by INGREZZA for tardive dyskinesia and Huntington’s chorea, with CRENESSITY (crinecerfont) expanding the base into congenital adrenal hyperplasia. The most recent quarter delivered double-digit revenue growth, record patient starts for INGREZZA, and a meaningful early contribution from CRENESSITY, underscoring a cash-generative model to fund pipeline work in neurology and psychiatry.

The Zacks Rank #1 captures upward estimate revisions tied to sustained INGREZZA execution and the ramp of CRENESSITY. A B Growth score fits improving earnings power, while F Momentum tempers expectations for near-term technical follow-through, and a C Value score indicates valuation in line with peers.

On the NBIX chart, EPS lines for 2026–2027 trend higher even as the share price has chopped sideways, reflecting consolidation while estimates rise. That gap usually resolves as fundamentals catch up, though competitive dynamics and pricing scrutiny remain watch items.

Keros Therapeutics (KROS)

$20.27 USD +2.17 (11.99%)

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 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% 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	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

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% (77 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 19% (3 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 A 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:$551.44 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 Therapeutics is a clinical-stage biotech developing TGF-β/activin-pathway therapies for blood and musculoskeletal disorders. Its lead asset elritercept (KER-050) is now in Phase 3 for transfusion-dependent anemia in lower-risk MDS.

Fundamentals hinge on a fortified balance sheet and a cleaner focus. In Q3 2025, Keros reported $693 million in cash and said, even after returning $375 million to shareholders via a tender offer, it expects runway into the first half of 2028. Management has also benefited from Takeda-related revenue that narrowed losses, giving flexibility to execute late-stage trials.

A Zacks Rank #1 underscores positive estimate revisions, while Style Scores of A for Value, Growth, and Momentum suggest an attractive blend of improving earnings outlook, reasonable valuation, and supportive technicals. On the chart, consensus EPS lines jump for 2026–2027 following these catalysts, and shares have rebounded with estimate revisions, though prior clinical volatility keeps risk elevated.

Amicus Therapeutics (FOLD)

$9.95 USD +0.17 (1.74%)

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 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% 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	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

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% (77 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 19% (3 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 C 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: -4.09%

Market Cap:$3.02 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 is a rare-disease company commercializing Galafold for Fabry disease and the Pombiliti + Opfolda regimen for late-onset Pompe disease. The most recent quarter delivered double-digit revenue growth, GAAP profitability, and continued uptake for both franchises, with guidance reiterated. The portfolio’s global expansion, coupled with operating discipline, supports a transition to self-funded growth.

A Zacks Rank #1 captures favorable revisions as the dual-brand portfolio scales. Style Scores of C for Growth and Momentum suggest steadier, execution-driven progress rather than a fast-moving trade, while a D Value score reminds that shares price in durable growth.

On the FOLD chart, the stock’s uptrend has tracked rising 2026–2027 EPS lines, with brief dips around earnings followed by rebounds as consensus holds. That pattern points to solid demand signals and operational consistency, even as payer dynamics and competitive enzyme therapies remain ongoing risks.

Arcutis Biotherapeutics (ARQT)

$31.16 USD +1.20 (4.01%)

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 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% 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	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

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% (77 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 19% (3 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:$3.67 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) cream and foam for plaque psoriasis and atopic dermatitis. Operations inflected in 2025: Zoryve sales accelerated triple digits year over year, Q3 marked the first profitable quarter, and label expansions are broadening the addressable market. Earlier in the year, Q2 results already showed significant sales momentum and narrowing losses.

A Zacks Rank #2 reflects rising but mixed revisions post-run. Style Score of B for Growth and C for Momentum signal constructive fundamentals with moderating technical, while a D Value score indicates investors are paying for the trajectory.

On the ARQT chart, 2026–2027 EPS lines trend steadily upward as price rebounds from lows, with estimate revisions leading the move. That setup suggests the story is transitioning from proof-of-concept to scale, though execution on access, adherence, and competitive topical launches will determine durability.

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. 4, 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.