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Best Pharmaceutical Stocks to Buy for January 2026

Kevin Voigt Updated on January 30, 2026

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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)
Harmony Biosciences (HRMY)	19.13%	9.22	$36.52	26.65%	17.15%
Tarsus Pharmaceuticals (TARS)	-3.50%	54.01	$64.54	180.44%	51.83%
Phibro Animal Health (PAHC)	-7.32%	14.44	$40.15	32.18%	13.13%
Pacira BioSciences (PCRX)	-4.79%	6.01	$20.54	15.05%	9.35%
ANI Pharmaceuticals (ANIP)	-9.12%	10.07	$81.85	7.87%	7.76%

*Updated on January 30, 2026.

Harmony Biosciences (HRMY)

$36.52 USD -0.34 (-0.92%)

3-Year Stock Price Performance

Premium Research for HRMY

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 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% 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	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

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 36% (88 out of 244)

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: Bottom 38% (10 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 B Growth F 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: -5.16%

Market Cap:$2.12 B (Mid Cap)
Projected EPS Growth:25.90%
Last Quarter EPS Growth:27.94%
Last EPS Surprise:-5.43%
Next EPS Report date:Feb. 24, 2026

Our Take:

Harmony Biosciences is a fast-growing neuroscience biotech with a strong commercial backbone. Its lead product, WAKIX, drives profitability, while additional central nervous system (CNS) drugs in development support long-term growth.

Financial momentum remains strong, with preliminary 2025 WAKIX revenue near $868 million and 2026 guidance of $1 to $1.04 billion. Cash generation supports multiple Phase 3 programs, including pitolisant gastro-resistant and high-dose pitolisant, while a broad late-stage pipeline underpins long-term value creation.

A Zacks Rank #1 (Strong Buy) signals positive estimate revisions, while an A Value and B Growth Score point to attractive valuation relative to earnings momentum. The F Momentum score warns that shares can whipsaw around data and quarterly prints. On the Price, Consensus & EPS Surprise chart, estimates for 2026–27 trend higher and the stock has stair-stepped up with pullbacks around regulatory events, typical for a single-product leader adding pipeline catalysts.

Tarsus Pharmaceuticals (TARS)

$64.54 USD -1.17 (-1.78%)

3-Year Stock Price Performance

Premium Research for TARS

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 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% 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	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

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 36% (88 out of 244)

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: Bottom 38% (10 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 A 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: 136.84%

Market Cap:$2.72 B (Mid Cap)
Projected EPS Growth:50.81%
Last Quarter EPS Growth:37.50%
Last EPS Surprise:14.29%
Next EPS Report date:Feb. 24, 2026

Our Take:

Tarsus Pharmaceuticals is an eye-care–focused biotech building category-defining therapies for high-prevalence conditions. Supported by an experienced leadership team, it focuses on Demodex-driven diseases while expanding its pipeline and commercial footprint globally.

Momentum is anchored by a high-performing launch engine, with rapidly scaling prescriptions, broad insurance coverage exceeding 90% of U.S. lives, and growing prescriber engagement. Beyond its lead franchise, Tarsus is advancing late-stage programs in ocular rosacea and Lyme disease prevention to extend long-term growth.

A Zacks Rank #1 captures strong upward estimate revisions. The A Growth and B Momentum Scores align with accelerating revenue and improving loss trajectory. The C Value Score suggests the market prices in a robust ramp but leaves room if execution persists. On its chart, the stock is volatile but tracks rising 2026–27 consensus, with sharp upswings around quarterly beats, consistent with a launch story transitioning toward scale.

Phibro Animal Health (PAHC)

$40.15 USD +0.26 (0.65%)

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 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% 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	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

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 35% (158 out of 244)

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: Bottom 38% (10 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 F 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:$1.57 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 Animal Health Corporation operates across animal health, mineral nutrition, and performance products, serving food-producing and companion animals globally. Its portfolio spans medicated feed additives, nutritional specialties, vaccines, and emerging therapeutics, with recent expansion into companion-animal oral care solutions.

Fiscal Q1 2026 reflected strong momentum, with consolidated revenue climbing about 40% year over year and adjusted EBITDA more than doubling, driven primarily by animal health. Management reaffirmed fiscal 2026 guidance, highlighting sustained protein demand, margin expansion, and disciplined capital management despite elevated leverage.

A Zacks Rank #2 indicates favorable, if less uniform, estimate revisions. Style Scores of A for Value and Growth suggest the rerating has lagged fundamentals, while a C Momentum Score reflects a slower, multi-quarter recovery. The chart shows estimates stepping higher into 2026–27 and a pronounced price turn from mid-2024 lows, consistent with integration-driven operating leverage rather than a single-product swing.

Pacira BioSciences (PCRX)

$20.54 USD +0.45 (2.24%)

3-Year Stock Price Performance

Premium Research for PCRX

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 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% 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	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

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 36% (88 out of 244)

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: Bottom 38% (10 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 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: 7.38%

Market Cap:$876.77 M (Small Cap)
Projected EPS Growth:-9.35%
Last Quarter EPS Growth:-2.13%
Last EPS Surprise:7.69%
Next EPS Report date:Feb. 26, 2026

Our Take:

Pacira BioSciences is a leading non-opioid pain company with established surgical and musculoskeletal products, including EXPAREL, ZILRETTA, and iovera. Preliminary 2025 revenue of about $726 million reflects strong adoption and a durable franchise.

Recent results point to steady momentum, led by higher EXPAREL volumes and improving manufacturing efficiency. Gross margins expanded as operations scaled, reinforcing cash-generation potential. Ongoing investment in commercialization, partnerships, and a growing pipeline positions Pacira well for sustained growth and long-term value creation.

A Zacks Rank #2 reflects improving, but mixed, estimate trends. An A Value and B Growth Score point to attractive risk-reward if margin gains translate to EPS, while a C Momentum mirrors a share price still rebuilding after a multi-year drawdown. On the chart, consensus for 2026–27 stabilizes and the stock appears to be basing after a long decline, typical of recovery setups tied to execution.

ANI Pharmaceuticals (ANIP)

$81.85 USD -0.15 (-0.18%)

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 23.83% 2 Buy 18.13% 3 Hold 10.08% 4 Sell 5.56% 5 Strong Sell 2.77% S&P 500 11.44% 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	23.83%
2	Buy	18.13%
3	Hold	10.08%
4	Sell	5.56%
5	Strong Sell	2.77%
S&P	500	11.44%

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 36% (88 out of 244)

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: Bottom 38% (10 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 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: -0.30%

Market Cap:$1.79 B (Small Cap)
Projected EPS Growth:45.19%
Last Quarter EPS Growth:18.84%
Last EPS Surprise:17.24%
Next EPS Report date:Feb. 27, 2026

Our Take:

ANI Pharmaceuticals is a diversified biopharmaceutical company focused on rare disease, brands, and generics, supported by U.S.-based manufacturing. Its growth strategy centers on specialty therapies such as Cortrophin Gel and ILUVIEN, addressing unmet needs across neurology, nephrology, rheumatology, ophthalmology, and pulmonology markets.

Based on preliminary 2025 results, momentum strengthened meaningfully, led by rapid expansion in the rare disease segment. Cortrophin adoption and progress in ophthalmology drove outsized revenue and earnings growth, enabling improved outlooks, a richer product mix, and a continued shift away from generic volatility.

A Zacks Rank #2 alongside Style Scores of A for Value, Growth and Momentum indicate balanced attractiveness. The revisions are positive, execution is evident, and shares have responded but not overshot fundamentals. The chart shows a sustained uptrend alongside rising 2026–27 estimates, with brief post-earnings pullbacks that have been bought, consistent with a company shifting from turnaround to compounding mode.

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, Jan. 30, 2026.

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.