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Best Pharmaceutical Stocks to Buy for December 2025

Kevin Voigt Updated on December 16, 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)	-14.93%	10.73	$83.32	45.35%	41.64%
Collegium Pharmaceutical (COLL)	39.57%	6.45	$48.82	17.11%	24.15%
Phibro Animal Health (PAHC)	5.15%	14.62	$40.79	32.18%	13.10%
Theravance Biopharma (TBPH)	24.59%	74.07	$17.84	173.96%	64.88%
Enliven Therapeutics, Inc. (ELVN)	-11.88%	NA	$16.36	6.35%	NA

*Updated on December 17, 2025.

ANI Pharmaceuticals (ANIP)

$83.32 USD +2.22 (2.74%)

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 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% 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	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

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 37% (89 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 25% (4 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 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: 0.00%

Market Cap:$1.83 B (Small Cap)
Projected EPS Growth:45.38%
Last Quarter EPS Growth: 18.84%
Last EPS Surprise:17.24%
Next EPS Report date:Feb. 27, 2026

Our Take:

ANI Pharmaceuticals develops rare-disease therapies and niche generics. Its flagship Purified Cortrophin Gel treats multiple inflammatory conditions, while ILUVIEN and YUTIQ add ophthalmology exposure. The latest quarter underscored the rare-disease pivot: Q3 revenue rose 54% with Cortrophin Gel revenue nearly doubling. Management raised 2025 guidance, highlighting demand expansion and broader specialty coverage.

A Zacks Rank 1 (Strong Buy) signals positive estimate revisions, and Style Scores of A for Growth and Momentum align with accelerating earnings trends, while a B Value Score suggests the shares are reasonably priced relative to peers. Cortrophin’s penetration and generic scale drive cash for pipeline and lifecycle efforts, balanced against payer and ILUVIEN execution risks.

On the Price, Consensus & EPS Surprise chart, price has stair-stepped higher alongside rising 2026–2027 EPS consensus, with green surprise markers reinforcing execution, though pullbacks around updates hint at above-average volatility.

Collegium Pharmaceutical (COLL)

$48.82 USD +0.11 (0.23%)

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 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% 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	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 32% (78 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 25% (4 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 C Growth F 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: $1.55 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 pain and neurology brands, including Xtampza ER, the Nucynta franchise, Belbuca, Symproic, and ADHD therapy Jornay PM. Q3 2025 delivered record net revenue of about $209 million, up 31% year over year, with all three core pain products growing, Jornay PM prescriptions increasing 20%, and guidance raised for the year.

The Zacks Rank #1 aligns with positive estimate revisions, while a Style Score of A for Value emphasizes an appealing valuation despite a D Growth and F Momentum score that keep expectations grounded. Management’s focus on durable cash flow and capital returns adds support, though opioid-category scrutiny and payer access remain known risks.

On the chart, the stock has broken higher as 2026–2027 estimates trend up from mid-year, following a long period of estimate resets. The price/consensus upturn corroborates the Rank, but momentum looks uneven around quarterly prints.

Phibro Animal Health (PAHC)

$40.79 USD +0.39 (0.97%)

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 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% 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	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

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% (170 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 25% (4 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 F 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: 2.53%

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 develops and supplies medicated feed additives, vaccines, and nutritional products for livestock and pets, giving investors a defensive animal-health angle within pharma. The most recent quarter showed higher sales and margin expansion, with updated fiscal 2026 guidance, as integration of the large Zoetis feed-additive acquisition scaled the portfolio and lifted gross profit.

A Zacks Rank #1 with Style Scores of B for Value and Growth fits a recovery story driven by mix, cost actions, and acquisition synergies, while a soft Momentum score of D reflects cautious sentiment. Currency and commodity exposure remain watch items.

On the PAHC chart, estimates for 2026–2027 edge higher while the stock base builds after a long decline, a pattern consistent with early-cycle recovery stories. Execution on cost discipline and cross-selling the Zoetis assets are the near-term catalysts to sustain the estimate drift higher.

Theravance Biopharma (TBPH)

$17.84 USD +0.31 (1.77%)

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 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% 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	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 32% (78 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 25% (4 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 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: -18.80%

Market Cap: $900.45 M (Small Cap)
Projected EPS Growth:175.00%
Last Quarter EPS Growth: -102.78%
Last EPS Surprise: 233.33%
Next EPS Report date: Feb. 25, 2026

Our Take:

Theravance Biopharma is a respiratory and neurology-focused company that earns profit share on YUPELRI for COPD and is advancing ampreloxetine for neurogenic orthostatic hypotension in multiple system atrophy. Q3 2025 featured record YUPELRI net sales at Viatris, non-GAAP breakeven, and a cash balance above $330 million, while the pivotal CYPRESS readout for ampreloxetine remains on track for early 2026.

A Zacks Rank 2 (Buy) reflects positive but measured estimate momentum as investors weigh durable royalty-like cash flows against binary clinical risk. Style Score of A for Growth and B for Momentum reflects improving profitability and catalyst visibility, even as a C Value Score signals some premium for pending data.

On the TBPH chart, the stock’s uptrend has accelerated alongside rising 2026–2027 EPS lines, punctuated by swings around data and royalty updates. If CYPRESS succeeds, the model could shift from breakeven to growth more visibly.

Enliven Therapeutics, Inc. (ELVN)

$16.36 USD -0.55 (-3.25%)

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 23.81% 2 Buy 18.15% 3 Hold 10.07% 4 Sell 5.58% 5 Strong Sell 2.74% S&P 500 11.51% 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	23.81%
2	Buy	18.15%
3	Hold	10.07%
4	Sell	5.58%
5	Strong Sell	2.74%
S&P	500	11.51%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 32% (78 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 25% (4 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

D Value B Growth A 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: $1.02 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 selective small-molecule inhibitors, led by ELVN-001 for chronic myeloid leukemia (CML). In Q3 2025, the company completed enrollment in the randomized Phase 1b cohorts of ENABLE for ELVN-001, reiterated plans to start a pivotal trial in 2026, and reported cash of about $478 million, guiding runway into the first half of 2029.

A Zacks Rank 2 indicates constructive estimate revisions as the program advances. The Style Score of B for Growth and A for Momentum reflects improving prospects and trading strength, while a D Value Score mirrors typical pre-revenue biotech risk.

On the chart, shares are volatile but trend upward with higher outer-year loss estimates narrowing as confidence in the CML asset builds. With balance sheet strength to fund late-stage development and encouraging early data, execution toward Phase 3 initiation is the key near-term marker.

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. 16, 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.