Best Biotech Stocks to Buy for January 2026
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) | -16.42% | 23.98 | $38.74 | -3.31% | 10.96% |
| ImmunityBio (IBRX) | 186.05% | NA | $5.91 | 21.25% | 83.41% |
| Compass Therapeutics, Inc. (CMPX) | 61.26% | NA | $6.38 | 1.16% | NA |
| Biohaven Ltd. (BHVN) | 46.04% | NA | $12.10 | 55.67% | 425.47% |
| ADMA Biologics (ADMA) | 6.25% | 19.21 | $17.01 | 49.12% | NA |
*Updated on January 29, 2026.
Veracyte (VCYT)
$38.74 USD +0.26 (0.68%)
3-Year Stock Price Performance
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- Zacks Rank
Strong Buy 1
- Style Scores
D Value A Growth B Momentum B VGM
- Market Cap:$3.15 B (Mid Cap)
- Projected EPS Growth:39.50%
- Last Quarter EPS Growth:22.58%
- Last EPS Surprise:59.38%
- Next EPS Report date:Feb. 23, 2026
Our Take:
Veracyte, a well-known diagnostics company focused on genomic cancer testing, reported strong preliminary full-year 2025 results, with the company expecting testing revenue to increase by 17% to 18% year over year on higher volumes and an adjusted EBITDA margin of more than 25%. Decipher and Afirma drove growth, while 2026 guidance implies continued revenue growth.
A Zacks Rank #1 (Strong Buy) reflects positive estimate revisions following 2026 guidance initiation. The A Growth and B Momentum Scores point to improving earnings power and constructive price action, while the D Value Score reminds investors that shares embed execution expectations typical of premium diagnostics names.
On the Price, Consensus & EPS Surprise chart, the stock’s multi-year uptrend has been punctuated by estimate increases for 2026–2027, even as pullbacks around updates have introduced volatility. The rising consensus lines that outpace price suggest sentiment has room to follow fundamentals should guidance continue to firm.
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ImmunityBio (IBRX)
$5.91 USD -0.24 (-3.90%)
3-Year Stock Price Performance
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- Zacks Rank
- Buy 2
- Style Scores
F Value C Growth A Momentum D VGM
- Market Cap:$5.86 B (Mid Cap)
- Projected EPS Growth:45.21%
- Last Quarter EPS Growth:30.00%
- Last EPS Surprise:30.00%
- Next EPS Report date:March 2, 2026
Our Take:
ImmunityBio is advancing immune-based cancer therapies that activate NK and T cells, led by ANKTIVA, which was approved by the FDA in April 2024 for BCG-unresponsive non-muscle invasive bladder cancer with carcinoma in situ (CIS) and launched in May 2024. Since launch, ANKTIVA has secured National Comprehensive Cancer Network guideline inclusion, a permanent J-code, and broad U.S. reimbursement coverage, supporting expansion into additional cancer indications.
A Zacks Rank #2 (Buy) captures upward estimate revisions alongside execution progress. The A Momentum Score reflects strong price trends, while C Growth and F Value Scores highlight early commercialization risks and a valuation that leans on continued uptake and pipeline catalysts.
The chart shows a choppy downtrend turning into stabilization as 2026–2027 EPS projections inflect higher. Consensus has begun to curl upward faster than price, implying leverage if sales trajectories persist, but the series also flags above-average volatility typical of single-asset ramps.
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Compass Therapeutics, Inc. (CMPX)
$6.38 USD +0.22 (3.57%)
3-Year Stock Price Performance
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- Zacks Rank
- Buy 2
- Style Scores
F Value F Growth C Momentum F VGM
- Market Cap:$1.14 B (Small Cap)
- Projected EPS Growth:-19.44%
- Last Quarter EPS Growth:42.86%
- Last EPS Surprise:42.86%
- Next EPS Report date:Feb. 26, 2026
Our Take:
Compass Therapeutics is a clinical-stage oncology company advancing a differentiated antibody pipeline led by tovecimig, a dual-target antibody that met its main study goal in a registrational Phase 2 and Phase 3 biliary tract cancer study. A survival data update is expected in late Q1 2026. A strong cash position is expected to fund operations into 2028, supporting continued pipeline progress.
A Zacks Rank #2 aligns with constructive estimate revisions as timelines firm. Style Scores of F for Value and Growth and C for Momentum reflect a pre-revenue profile where catalysts, not near-term earnings, drive the setup. The Rank helps frame that risk and reward skew.
On the chart, shares have broken higher from a long consolidation while out-year EPS lines steepen. That divergence between rising 2027 consensus and lagging historical numbers is typical for catalyst-driven biotechs and places outsized weight on upcoming readouts to validate the move.
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Biohaven Ltd. (BHVN)
$12.10 USD -0.08 (-0.66%)
3-Year Stock Price Performance
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- Zacks Rank
- Buy 2
- Style Scores
F Value C Growth F Momentum F VGM
- Market Cap:$1.34 B (Small Cap)
- Projected EPS Growth:25.75%
- Last Quarter EPS Growth:15.46%
- Last EPS Surprise:14.14%
- Next EPS Report date:March 2, 2026
Our Take:
Biohaven is a biopharmaceutical company advancing a broad and innovative pipeline across multiple high-value therapeutic areas. Its lead programs, BHV-1400 for IgA nephropathy and BHV-1300 for Graves’ disease, have delivered rapid, targeted clinical activity. With several pivotal milestones expected in 2026 and a solid financial position, the company remains focused on executing its clinical and development strategy.
A Zacks Rank #2 reflects estimate support tied to progress across the pipeline. F grades for Value and Momentum and a C for Growth underscore the pre-revenue nature of the story and sensitivity to trial outcomes, but the Rank suggests analysts are incrementally constructive as timelines clarify.
The chart depicts a prolonged base with a recent upswing as 2026–2027 consensus lifts. Rising estimates ahead of pivotal events often precede volatility. They indicate building confidence, though confirmation from regulatory filings or data will be the key to sustaining the move.
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ADMA Biologics (ADMA)
$17.01 USD +0.68 (4.16%)
3-Year Stock Price Performance
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- Zacks Rank
- Buy 2
- Style Scores
C Value D Growth B Momentum D VGM
- Market Cap:$3.95 B (Mid Cap)
- Projected EPS Growth:16.33%
- Last Quarter EPS Growth:6.67%
- Last EPS Surprise:0.00%
- Next EPS Report date:March 2, 2026
Our Take:
ADMA Biologics, a biologics drug company, closed 2025 with strong momentum, delivering preliminary full-year revenue of $510 to 511 million and demonstrating a highly profitable, scaled business model. FDA approval to sell product made with its new, higher-yield manufacturing process is a key milestone. With 2026 set to be the first full year of increased production, profits and margins are positioned to rise steadily as sales grow.
A Zacks Rank #2 reflects stable-to-rising estimates on operational execution. The B Momentum Score fits a stock supported by improving fundamentals, while C for Value and D for Growth suggest investors are paying up for defensible cash-flow visibility rather than explosive EPS acceleration.
On the chart, consensus EPS for 2026–2027 trends steadily higher while the share price grinds off a multi-year base. This suggests fundamentals are improving ahead of the share price, with further margin progress likely to be rewarded.
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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, Jan. 29, 2026.
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.
