Best Biotech Stocks to Buy for December 2025
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) | 28.35% | 25.97 | $42.92 | 38.87% | 14.09% |
| Neurocrine Biosciences (NBIX) | 2.11% | 20.94 | $145.00 | 110.51% | 21.39% |
| Amicus Therapeutics (FOLD) | 72.09% | 39.94 | $14.18 | 47.92% | 19.00% |
| Keros Therapeutics (KROS) | 26.23% | 8.90 | $20.26 | 145.53% | 6,809.40% |
| Arcutis Biotherapeutics (ARQT) | 59.42% | NA | $28.01 | 79.02% | 83.29% |
*Updated on December 22, 2025.
Veracyte (VCYT)
$42.92 USD +0.88 (2.09%)
3-Year Stock Price Performance
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- Zacks Rank
- Strong Buy 1
- Style Scores
D Value B Growth F Momentum D VGM
- 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 develops genomic diagnostics that guide cancer diagnosis and treatment, led by Afirma for thyroid nodules and Decipher for prostate cancer, alongside lung and breast assays. Its volume-driven model benefits from growing clinical validation and payor coverage as tests embed into standard care.
Fundamentals strengthened in Q3 2025, with revenue of about $132 million, testing revenue up 17% year over year, and raised full-year revenue and profitability guidance, reflecting operating leverage from sustained Decipher adoption and supporting continued pipeline investment.
A Zacks Rank #1 (Strong Buy) signals estimate revisions upward. A Style Score of B for Growth aligns with accelerating testing economics, while the F Value and C Momentum Scores argue for selectivity on entry points. On the Price, Consensus & EPS Surprise chart, EPS estimates for 2025–2027 have trended higher with the stock following that trajectory, though pullbacks around earnings and guidance resets keep volatility elevated, typical for diagnostics growth stories.
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Neurocrine Biosciences (NBIX)
$145.00 USD +3.16 (2.23%)
3-Year Stock Price Performance
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- Zacks Rank
- Strong Buy 1
- Style Scores
C Value B Growth C Momentum B VGM
- Market Cap: $14.13 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 and endocrine therapies, led by INGREZZA for tardive dyskinesia and Huntington’s chorea, and CRENESSITY for classic congenital adrenal hyperplasia. The portfolio targets chronic specialty markets where diagnosis and treatment pathways are becoming better defined, supporting durable prescription trends.
Fundamentals remain solid, with INGREZZA net sales reaching $687 million in the latest reported quarter, up 12% year-over-year, and CRENESSITY generating $98 million on strong early patient starts and broad reimbursement coverage. Record new INGREZZA prescriptions further underscore resilient demand despite rising competition.
A Zacks Rank #1 signals favorable estimate revisions, and the B Growth Score aligns with improving earnings power, while C scores for Value and Momentum indicate the stock isn’t cheap and may be catalyst-driven, warranting selective entries. On the chart, 2025–2027 EPS trends have risen since a midyear dip, and the stock has stair-stepped higher, though sharp moves around guidance remain common for commercial-stage biopharma.
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Amicus Therapeutics (FOLD)
$14.18 USD +3.29 (30.21%)
3-Year Stock Price Performance
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- Zacks Rank
- Strong Buy 1
- Style Scores
F Value C Growth B Momentum D VGM
- Market Cap:$3.39 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 commercial-stage rare-disease biotechnology company focused on Fabry and Pompe diseases, marketing Galafold and the two-component therapy Pombiliti + Opfolda. Its strategy centers on specialist uptake, broader reimbursement, and phased international launches that drive durable treatment use.
Results strengthened in the latest quarter, as Q3 2025 revenue reached $169 million, up 17% at constant currency. Galafold delivered modest growth, while Pombiliti + Opfolda surged more than 40%. Amicus posted positive GAAP income, boosted cash, reaffirmed 2025 guidance, and cited reimbursement wins in Japan and Belgium, underscoring operating leverage.
A Zacks Rank #1 reflects positive estimate revisions. B Momentum and C Growth scores fit a catalyst-led earnings recovery, while an F Value score argues for disciplined entry points. On the chart, 2026–2027 EPS estimates trend higher, with shares advancing but prone to swings around quarterly updates, typical for launch-phase biotechs.
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Keros Therapeutics (KROS)
$20.26 USD +0.13 (0.65%)
3-Year Stock Price Performance
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- Zacks Rank
Strong Buy 1
- Style Scores
A Value A Growth A Momentum A VGM
- Market Cap:$634.61 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 protein therapeutics that modulate TGF-β signaling, led by elritercept (KER-050) for cytopenias and KER-065 for muscle disorders. The company reshaped its portfolio after mixed PAH readouts for cibotercept, focusing development on programs with clearer benefit-risk profiles.
Fundamentals today hinge on capital discipline and a long cash runway. Following a strategic review, Keros initiated a $375 million return of excess capital and completed a tender offer, while maintaining resources to advance KER-065 and late-stage plans for elritercept. These steps reflect a cleaner story, with non-core risk reduced and shareholder alignment improved.
A Zacks Rank #2 (Buy) signals improving estimate revisions, while A scores for Value and Growth highlight attractive risk-reward, despite a C Momentum score implying choppier trading. On the chart, shares turned higher as 2026–2027 EPS estimates inflected upward, then consolidated after a sharp gap, tracking rising longer-term expectations amid near-term volatility.
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Arcutis Biotherapeutics (ARQT)
$28.01 USD +0.23 (0.83%)
3-Year Stock Price Performance
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- Zacks Rank
- Buy 2
- Style Scores
D Value B Growth C Momentum C VGM
- Market Cap:$3.40 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 Biotherapeutics is a commercial dermatology biotech built around roflumilast (Zoryve) cream and foam for psoriasis and atopic dermatitis. The franchise keeps widening: foam won FDA approval in May for scalp and body psoriasis, and the cream label was extended in October to children as young as two, opening broader primary-care and pediatric channels.
In Q3 2025, Zoryve's net product revenue rose 122% year over year to $99.2 million, with the company delivering its first quarterly profit and setting initial 2026 sales guidance of $455–$470 million. Execution is being supported by improved gross-to-net, life-cycle studies, and a focused commercial model around the core formulations.
A Zacks Rank #2 signals favorable estimate revisions. A B Growth score reflects accelerating adoption, while D for Value and Momentum Score highlight ongoing volatility. On the chart, shares have risen from 2024 lows with 2025–2027 EPS trends climbing, though pullbacks around updates persist as prices reset higher.
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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, Dec. 19, 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.
