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Best Pharmaceutical Stocks to Buy for December 2025

Kevin Voigt Updated on December 2, 2025

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Eli Lilly (LLY), the Indianapolis-based drugmaker, recently made news by becoming the first pharmaceutical company to top $1 trillion in market value, thanks in part to its breakout weight-loss drugs, Mounjaro and Zepbound. Are other pharma stocks worth a look?

Are Pharmaceutical Stocks a Good Investment?

Pharmaceutical firms have long been viewed as a blend of defensive income plays and growth opportunities. As demand for medicines, vaccines, and chronic-disease treatments remains steady regardless of economic cycles, pharma companies often deliver stable earnings. That stability — combined with generous dividends many pharma companies pay — makes them especially attractive when the broader market is choppy or inflation is high.

Additionally, the global pharmaceutical industry continues to grow: Analysts expect the sector to expand over the coming years, aided by rising demand for treatments for chronic illnesses, oncology, vaccines and demographic factors such as aging populations.

However, pharmaceutical investing isn’t risk-free. Outcomes often depend on R&D success, regulatory approvals, patent expirations, and competitive pressures. That’s why smart investors often balance stable dividend-payers with growth-oriented firms or diversify across multiple names.

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

5 Best Pharma Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
ANI Pharmaceuticals (ANIP)	-16.60%	10.89	$82.67	45.00%	41.61%
Phibro Animal Health (PAHC)	-1.33%	14.75	$41.39	31.94%	13.07%
Collegium Pharmaceutical (COLL)	25.13%	6.29	$47.85	17.11%	24.15%
Theravance Biopharma (TBPH)	33.94%	80.13	$18.89	171.88%	56.64%
Enliven Therapeutics, Inc. (ELVN)	4.26%	NA	$21.00	6.35%	NA

*Updated on December 3, 2025.

ANI Pharmaceuticals (ANIP)

$82.67 USD +0.55 (0.67%)

3-Year Stock Price Performance

Premium Research for ANIP

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 33% (80 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

B Value B 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:$1.90 B (Small Cap)
Projected EPS Growth:45.00%
Last Quarter EPS Growth: 18.84%
Last EPS Surprise:17.24%
Next EPS Report date:Feb. 27, 2026

Our Take:

ANI Pharmaceuticals develops and commercializes specialty generics and rare-disease brands, led by Purified Cortrophin Gel and an expanding ophthalmology franchise (ILUVIEN). The latest quarter delivered record revenue and EBITDA with Cortrophin nearly doubling year over year, and management raised full-year guidance, underscoring durable demand and better mix.

The story works because rare-disease cash flow is now about half of sales while generics continue to contribute and launch new products, supporting investment and balance-sheet flexibility. Execution around Cortrophin’s prefilled syringe and multi-specialty reach remains a clear growth lever.

A Zacks Rank #1 (Strong Buy) reflects upward estimate revisions. Style Scores of B for Value and Growth suggest a balanced setup, though an F on Momentum flags the recent pullback and choppier trading. On the Price, Consensus & EPS Surprise chart, estimates for 2026–2027 trend higher and the stock’s uptrend largely follows those rising lines, with brief pullbacks around earnings.

Phibro Animal Health (PAHC)

$41.39 USD +0.71 (1.75%)

3-Year Stock Price Performance

Premium Research for PAHC

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: Bottom 29% (171 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

B Value B Growth B 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:$1.65 B (Small Cap)
Projected EPS Growth: 32.06%
Last Quarter EPS Growth: 28.07%
Last EPS Surprise: 23.73%
Next EPS Report date: Feb. 4, 2026

Our Take:

Phibro sells medicated feed additives, vaccines and specialty nutrition products that support livestock and companion-animal health. Its Q1 fiscal 2026 results showed solid gains in revenue, adjusted EBITDA and EPS, supported by acquisition and steady demand across Animal Health and Mineral Nutrition. For fiscal 2026, management expects continued growth in sales and EBITDA.

Mix improvements and operating discipline are helping expand margins, though higher interest costs from acquisition financing remain a consideration. A diverse species and geographic footprint reduces volatility, and profitability has strengthened versus last year.

A Zacks Rank 1 captures positive estimate revisions. Style Scores of B for Value, Growth and Momentum, indicate a balanced setup where valuation, execution and recent stock performance reinforce each other. On the chart, shares have broken to new highs as 2026–2027 earnings lines trend higher. Periodic swings around quarterly reports are evident, but the slope of consensus remains constructive.

Collegium Pharmaceutical (COLL)

$47.85 USD +0.34 (0.72%)

3-Year Stock Price Performance

Premium Research for COLL

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 30% (73 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 D Growth C Momentum B 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: $1.48 B (Small Cap)
Projected EPS Growth: 17.05%
Last Quarter EPS Growth:40.14%
Last EPS Surprise:19.68%
Next EPS Report date:Feb. 26, 2026

Our Take:

Collegium markets differentiated pain medicines (Xtampza ER, Belbuca, Nucynta) and the ADHD therapy Jornay PM. Q3 2025 was another record with net product revenue rising 31% with double-digit growth across the pain portfolio and a 20% prescription lift for Jornay. Management raised full-year revenue and EBITDA guidance and ended the quarter with ample cash.

The growth engine is durable with diversified brands, rising ADHD penetration and disciplined capital deployment (debt paydown and buybacks) supporting cash generation even as litigation and pricing remain industry risks. Updated 2025 guidance and operating momentum strengthen visibility heading into 2026.

A Zacks Rank #1 and a Value Score A counter a weaker D in Growth, reflecting strong cash yield and buyback capacity amid steady, not rapid, expansion. A Momentum Score B signals improving sentiment. On the chart, shares have climbed as 2026–2027 EPS lines grind higher, with pullbacks around earnings followed by quick recoveries.

Theravance Biopharma (TBPH)

$18.89 USD +0.46 (2.50%)

3-Year Stock Price Performance

Premium Research for TBPH

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 30% (73 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 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: 5.44%

Market Cap: $993.69 M (Small Cap)
Projected EPS Growth:171.88%
Last Quarter EPS Growth: -102.78%
Last EPS Surprise: 233.33%
Next EPS Report date: Feb. 25, 2026

Our Take:

Theravance is a respiratory-focused biopharma anchored by YUPELRI royalties and a late-stage program, ampreloxetine, for neurogenic orthostatic hypotension. In Q3 2025, YUPELRI U.S. net sales hit a record, the company achieved non-GAAP breakeven, and cash stood above $330 million with no debt. Management completed enrollment in the Phase 3 CYPRESS study, guiding to a Q1 2026 topline.

This mix of royalty durability, expense control and a near-term catalyst improves the risk-reward, though regulatory and clinical execution remain central. A prospective TRELEGY milestone adds optionality.

A Zacks Rank 2 (Buy) reflects constructive revisions. A Growth score of A and Momentum score of B reflect accelerating product metrics and improving stock action, while a Value score of C keeps attention on execution and milestone timing. On the chart, the stock’s recovery has tracked rising 2026–2027 EPS estimates, with spikes around data and event updates emphasizing a catalyst-driven path.

Enliven Therapeutics, Inc. (ELVN)

$21.00 USD +0.44 (2.14%)

3-Year Stock Price Performance

Premium Research for ELVN

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 30% (73 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 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: $1.18 B (Small Cap)
Projected EPS Growth:6.35%
Last Quarter EPS Growth: 34.69%
Last EPS Surprise:25.58%
Next EPS Report date: March 12, 2026

Our Take:

Enliven Therapeutics is a clinical-stage oncology company developing ELVN-001, a selective BCR-ABL inhibitor for CML. In Q3 2025, the company reported continued pipeline progress, completed randomized Phase 1b enrollment for ELVN-001, reiterated plans to start Phase 3 in 2026, and ended the quarter with roughly $478 million in cash, extending runway into 2029.

Updated Phase 1 ENABLE data showed activity in heavily pretreated CML and supported the program’s best-in-class ambition. The balance sheet lets Enliven run pivotal trials without near-term financing risk. As a development-stage story, regulatory, competitive and trial-execution risks are material.

A Zacks Rank 2, with a Style Score of D for Value and C for Growth, reflects the pre-revenue stage and milestone risk, while a Momentum score of B signals improving sentiment after data presentations. On the chart, the stock shows sharp moves around clinical news, with 2026–2027 loss estimates narrowing as the program de-risks.

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 Pharmaceutical Stocks are based on the current top ranking stocks based on Zacks Indicator Score and other factors. For this list, only companies that have average daily trading volumes of 100,000 shares or more are considered. All information is current as of market open, Dec. 2, 2025.

Learn More about Pharmaceutical Stocks

What are Pharmaceutical Stocks?

“Pharmaceutical stocks” refer to publicly traded companies engaged primarily in the discovery, development, manufacturing, and sale of drugs — including brand-name medicines, biologics, vaccines and sometimes generics.

Types of Pharmaceutical Stocks

Large-cap, established pharmaceutical companies – These are the global leaders with diverse drug portfolios, steady revenue streams, and long histories of paying dividends. Examples include Pfizer (PFE), Merck (MRK), Johnson & Johnson (JNJ), AbbVie (ABBV), Bristol-Myers Squibb (BMY) and Novartis (NVS). These companies tend to have well-funded pipelines and wide geographic reach, making them popular with conservative investors.

Specialty-drug and focused biopharma firms – These companies concentrate on specific therapeutic areas such as rare diseases, oncology, immunology, or metabolic conditions. They can deliver strong growth if a breakthrough therapy succeeds. Examples include Vertex Pharmaceuticals (VRTX) in genetic diseases, Regeneron (REGN) in immunology and ophthalmology, Incyte (INCY) in oncology and Horizon Therapeutics (HZNP) in autoimmune disorders.

Pipeline-driven or R&D-intensive pharmaceutical developers – These companies may have fewer commercialized drugs but invest heavily in research, clinical trials, and next-generation treatments. Revenue may be uneven, but the upside can be significant if major approvals come through. Notable examples include Moderna (MRNA) in mRNA therapeutics, BioNTech (BNTX) in immuno-oncology, Alnylam Pharmaceuticals (ALNY) in RNA interference drugs and Sarepta Therapeutics (SRPT) in genetic therapies.

Pros of Pharmaceutical Stocks

Consistent demand for medicines: Healthcare needs remain steady regardless of economic cycles, helping companies like Merck, Eli Lilly (LLY), or AstraZeneca (AZN) maintain dependable revenue.
Attractive dividends: Many large pharmaceutical companies, such as Pfizer, AbbVie, and Johnson & Johnson, are known for long-standing dividend programs and high payout reliability.
Potential for major upside from drug launches: A successful approval or breakthrough therapy—such as Eli Lilly’s diabetes/obesity drugs or Regeneron’s eye-disease treatments—can significantly boost a company’s valuation.
Diversification within healthcare: Pharma stocks often behave differently from technology, consumer, or financial sectors, providing balance to an investment portfolio.

Cons of Pharmaceutical Stocks

Regulatory hurdles: Failure to secure FDA approval, clinical-trial setbacks, or safety concerns can sharply impact valuations when trials don’t meet expectations.
Patent cliffs and generic competition: Once exclusivity ends, branded drugs can face rapid erosion from generics or biosimilars. For instance, AbbVie’s Humira — once the world’s top-selling drug — saw sales drop after biosimilar competition entered the market.
Competitive pressures: New drugs from rivals can displace existing blockbusters. For example, Novo Nordisk (NVO) and Eli Lilly (LLY) dominate the obesity/diabetes segment, squeezing competitors.
High research costs and uncertainties: Pharma R&D is expensive and unpredictable. Firms like Moderna, Alnylam, or Sarepta often experience stock volatility tied directly to clinical-trial outcomes or scientific feasibility.

Best Pharmaceutical Stocks vs. Biotechnology Stocks: Which Is Better?

Pharmaceutical companies (large-cap pharma)
These firms—such as Merck, Pfizer, AbbVie, and Novartis—tend to be more stable due to established product lines and recurring revenue. They typically appeal to income-focused investors because they often pay strong and consistent dividends.

Biotechnology companies
Biotech firms like Regeneron, Vertex, Moderna, and BioNTech often target cutting-edge scientific approaches with high growth potential. Their revenues can surge when a breakthrough therapy succeeds, but they face much greater volatility and dependency on research outcomes.

>>Learn more: Best Biotech Stocks to Buy Today

Which is better?

If you prefer steady dividends and lower volatility, large U.S. and international pharma names are generally a better fit.
If you’re seeking high potential returns and can handle larger price swings, biotech and R&D-intensive drug developers may offer superior upside.
Many investors blend both categories to balance income with innovation-driven growth.

Risks and Safety

How do FDA approvals impact stock prices?

Securing FDA approval for a new drug can be a major catalyst: positive news can dramatically boost stock price. Conversely, delays, negative trial results, or regulatory setbacks can result in sharp declines. That’s why even solid firms factor in “uncertainty rating” — because much hinges on regulatory success.

How do patent expirations affect pharmaceutical stocks?

When a drug’s patent expires, generics may enter, often severely reducing sales for the original drug — which can lead to revenue decline unless the company successfully replaces the lost revenue with new drugs or therapies.

What are the biggest risks when investing in drug companies?

R&D failure and sunk costs.
Regulatory hurdles and unpredictable approval processes.
Competition (generics, biosimilars, newer therapies).
Litigation, pricing pressure, changes in healthcare policy and regulation.
Concentration risk if a company relies heavily on a few blockbuster drugs.

Pharmaceutical Stocks Trends

Which pharmaceutical stock benefits the most from aging population trends?

Large-cap companies with broad portfolios — especially those offering treatments for chronic diseases (e.g., cardiovascular, cancer, auto-immune, diabetes) — tend to benefit from demographic trends. Firms like Merck, AbbVie, and others with diversified pipelines may be especially well positioned.

How have pharmaceutical stocks performed in the last 5 years?

Many large-cap pharma stocks have offered attractive dividend yields and moderate growth, often outperforming more cyclical sectors, especially in volatile markets. Their relative resilience and dividends have appealed to investors seeking stability.

Are pharma stocks recession-proof?

Not entirely — but compared with consumer discretionary or cyclical sectors, pharma tends to be more resilient. Demand for essential medicines tends to remain stable even during economic downturns, giving pharma a defensive characteristic.

How to Invest in Pharmaceutical Stocks

Should beginners invest in pharma ETFs instead of single stocks?

Yes — for many retail investors, pharma-focused ETFs (or broader healthcare ETFs) offer diversified exposure, reducing the risk of overconcentration in a single company. This mitigates risks like regulatory failure or drug-specific setbacks.

Is it better to invest in global or U.S. pharmaceutical companies?

Both have advantages. U.S. firms often lead in innovation, R&D, and large-scale global distribution. International companies may offer exposure to different markets, drug pipelines, and potentially attractive valuations. A mix of both can provide balanced diversification.