On July 8, Jared Holz, Mizuho, joined ‘Closing Bell Overtime’ on CNBC to discuss if the biotech sector is ready for a breakout. Jared Holz admitted that the biotech sector has been exceptionally difficult to predict, largely due to the sheer number of publicly traded stocks that, in aggregate, don’t present a clear unified trend, featuring both many negative and many positive elements. For this reason, he noted the challenge in making a broader industry call. However, Holz observed that the sector was beginning to trade a little bit better, making higher lows and no longer declining indiscriminately every day as it had for a long time. He believes that all the negative factors, such as pricing pressure, competition, and the volume of assets in the publicly traded arena, are now well understood and digested by the market, signaling that it’s time for a move higher.
He also confirmed that his call for a biotech breakout was his analysis and was also influenced by a turning tide in investor sentiment. He stated that investor conversations had become far more bullish over the past couple of months. He attributed this shift partly to discussions about the pharma dilemma, likely referring to the need for pharma companies to acquire new assets, partly to actual M&A activity, and partly to improved clinical data. He also mentioned that while he doesn’t believe interest rates are super tied to this sector, others do, and they anticipate rates will decline over time, contributing to the bullish sentiment. Additionally, he noted the technical indicators, observing that the biotech index had stopped declining regardless of whether the broader market was up or down, which indicates a better place for the sector.
That being said, we’re here with a list of the 10 biotech stocks to buy according to Wall Street analysts.
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Our Methodology
We sifted through the Finviz stock screener to compile a list of the top 10 biotech stocks with an upside potential of over 25% as of July 30. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Biotech Stocks to Buy According to Wall Street Analysts
10. Apellis Pharmaceuticals Inc. (NASDAQ:APLS)
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 30: 68.42%
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is one of the biotech stocks to buy according to Wall Street analysts. On July 29, Apellis announced that the US FDA approved EMPAVELI (pegcetacoplan) as the first treatment for C3 glomerulopathy (C3G) or primary immune complex membranoproliferative glomerulonephritis (IC-MPGN) in patients 12 years of age and older.
This approval aims to reduce proteinuria in patients with these rare kidney diseases, which affect ~5,000 people in the US and ~8,000 in Europe. These conditions often lead to kidney failure within 5 to 10 years of diagnosis, and around 90% of kidney transplant patients with C3G experience disease recurrence. The approval is based on positive six-month results from the Phase 3 VALIANT study (NCT05067127), the largest single trial conducted in these patient populations, including both pediatric and adult patients with native and post-transplant kidneys.
EMPAVELI demonstrated efficacy by meeting its primary endpoint with a 68% reduction in proteinuria compared to placebo. EMPAVELI is a targeted C3 therapy that works by regulating excessive activation of the complement cascade, a part of the body’s immune system.
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel therapeutic compounds to treat diseases with high unmet needs.
9. Liquidia Corporation (NASDAQ:LQDA)
Number of Hedge Fund Holders: 39
Average Upside Potential as of July 30: 70.07%
Liquidia Corporation (NASDAQ:LQDA) is one of the biotech stocks to buy according to Wall Street analysts. Earlier on June 27, BTIG adjusted its price target for Liquidia from $45 to $40 while maintaining a Buy rating. The revision followed BTIG’s attendance at the United Therapeutics Corp. (NASDAQ:UTHR) versus Liquidia ‘327 Hatch Waxman trial in Delaware earlier that week.
Although BTIG still believes Liquidia has favorable odds of prevailing against United’s ‘327 patent, the firm reduced the probability of success for Liquidia’s drug, Yutrepia, in treating pulmonary hypertension associated with interstitial lung disease (PH-ILD) to 85% from 99% to better reflect the unresolved legal risk.
Key business developments for Liquidia include preparations for the potential launch of its first internally developed commercial product, Erepia, for pulmonary arterial hypertension and PH-ILD. The company received a favorable court ruling on May 8 earlier this year, dismissing United Therapeutics’ cross-claim, which removed some legal barriers to Erepia’s potential final approval.
However, Liquidia also faces challenges. The company’s revenue for Q1 2025 was only slightly higher than the previous year, and it reported a net loss of $38.4 million for the quarter, which was an increase from the prior year’s loss. There also remains uncertainty regarding potential future legal actions from United Therapeutics, which could impact Erepia’s launch.
Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that develops, manufactures, and commercializes various products for unmet patient needs in the US.
8. Centessa Pharmaceuticals (NASDAQ:CNTA)
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 30: 90.22%
Centessa Pharmaceuticals (NASDAQ:CNTA) is one of the biotech stocks to buy according to Wall Street analysts. On July 21, Truist initiated coverage of Centessa Pharmaceuticals with a Buy rating and a price target of $30. The firm anticipates significant upside potential for Centessa’s drug candidate, ORX750, in treating narcolepsy and idiopathic hypersomnia, viewing orexin-2 receptor agonists like ORX750 as potentially becoming the new standard of care.
Despite ORX750 being slightly behind competitors in development, Truist believes it can differentiate itself through its safety, efficacy, and convenient dosing. In Q1 2025, Centessa Pharmaceuticals reported a net loss of $26.1 million, which was a notable improvement from the $38 million net loss in the same period of 2024.
Centessa has a diverse pipeline. The company’s lead program, called ORX750, is an orally administered orexin-2 receptor agonist, which is currently in a Phase 2a CRYSTAL-1 study for narcolepsy type 1/NT1, narcolepsy type 2/NT2, and idiopathic hypersomnia/IH. Data from this study across all 3 indications are expected in 2025. Other pipeline assets include SerpinPC for Hemophilia A and B, LB101 for Solid Tumors, MGX292 for Pulmonary Arterial Hypertension/PAH, and other undisclosed assets for Solid Tumors, as well as additional orexin agonists like ORX142 and ORX489 in IND-enabling studies.
Centessa Pharmaceuticals (NASDAQ:CNTA) is a clinical-stage pharmaceutical company that discovers, develops, and delivers medicines.
7. Cytokinetics Incorporated (NASDAQ:CYTK)
Number of Hedge Fund Holders: 64
Average Upside Potential as of July 30: 93.48%
Cytokinetics Incorporated (NASDAQ:CYTK) is one of the biotech stocks to buy according to Wall Street analysts. On July 10, Cytokinetics announced that five presentations related to their investigational drug, called aficamten, will be delivered at the European Society of Cardiology/ESC Congress 2025. The congress is scheduled to take place in Madrid, Spain, from August 29 to September 1 this year.
Aficamten is a cardiac myosin inhibitor designed to reduce the hypercontractility associated with hypertrophic cardiomyopathy/HCM. Among the key presentations, a “Hot Line” presentation on August 30 will detail the primary results from the MAPLE-HCM study. The study compares aficamten to metoprolol in patients with obstructive HCM, focusing on Left Ventricular Outflow Tract/LVOT obstruction and exercise capacity.
Additionally, a “Late Breaking Clinical Science” session on August 31 will feature data on the incidence and impact of atrial fibrillation across three clinical trials of aficamten in obstructive HCM: REDWOOD-HCM, SEQUOIA-HCM, and FOREST-HCM. Another oral presentation on August 31 will cover the efficacy and safety of long-term treatment with aficamten in symptomatic obstructive HCM, drawing results specifically from the FOREST-HCM study.
Cytokinetics Incorporated (NASDAQ:CYTK) is a late-stage biopharmaceutical company that focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases in the US.
6. uniQure (NASDAQ:QURE)
Number of Hedge Fund Holders: 35
Average Upside Potential as of July 30: 107.47%
uniQure (NASDAQ:QURE) is one of the biotech stocks to buy according to Wall Street analysts. Earlier on June 2, uniQure provided a regulatory update on AMT-130, which is the company’s investigational gene therapy for Huntington’s disease, following recent Type B meetings and guidance from the US FDA.
The company has reached alignment with the FDA on key aspects of the statistical analysis plan/SAP and Chemistry, Manufacturing and Controls/CMC information, paving the way for a Biologics License Application/BLA submission, which is now expected in Q1 2026. This accelerated approval pathway is supported by multiple years of clinical data.
Key upcoming milestones for the BLA submission include: submitting the updated SAP to the FDA in Q2 2025, initiating the PPQ run and presenting topline Phase I/II data per the SAP in Q3 2025, and holding a pre-BLA meeting with the FDA in Q4 2025.
uniQure (NASDAQ:QURE) develops treatments for patients suffering from rare and other devastating diseases in the US.
5. Arcus Biosciences Inc. (NYSE:RCUS)
Number of Hedge Fund Holders: 35
Average Upside Potential as of July 30: 154.51%
Arcus Biosciences Inc. (NYSE:RCUS) is one of the biotech stocks to buy according to Wall Street analysts. On July 10, Arcus Biosciences announced that quemliclustat, which is the company’s investigational small-molecule CD73 inhibitor, was granted Orphan Drug Designation by the US FDA for the treatment of pancreatic cancer.
This designation is intended to expedite the development of new treatments for rare diseases affecting fewer than 200,000 people in the US. Pancreatic cancer is a particularly aggressive and rare disease, with an estimated 67,440 Americans expected to be diagnosed in 2025. It holds the highest mortality rate among all major cancers, with ~50% of pancreatic ductal adenocarcinoma/PDAC cases diagnosed in the metastatic setting, which has a dismal 5-year survival rate of only 3%.
The orphan drug designation for quemliclustat follows promising results from the Phase 1 ARC-8 study, presented in January last year. This study demonstrated no new safety signals and a median overall survival of 15.7 months in a pooled analysis of all patients treated with 100mg quemliclustat-based regimens.
Arcus Biosciences Inc. (NYSE:RCUS) is a clinical-stage biopharmaceutical company that develops and commercializes cancer therapies in the US.
4. Rocket Pharmaceuticals Inc. (NASDAQ:RCKT)
Number of Hedge Fund Holders: 40
Average Upside Potential as of July 30: 154.78%
Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) is one of the biotech stocks to buy according to Wall Street analysts. On July 24, Rocket Pharmaceuticals announced a corporate reorganization and pipeline prioritization to maximize near-term value and extend its operational runway.
This initiative, approved by the Board of Directors on June 18, focuses the company’s resources on its adeno-associated virus/AAV cardiovascular platform and regulatory activities for KRESLADI (formerly RP-L201), its lentiviral therapy for severe leukocyte adhesion deficiency-I (LAD-I).
The restructuring involves a workforce reduction of ~30% and other cost-saving measures, which are expected to reduce Rocket’s 12-month operating expenses by ~25%. The company anticipates incurring ~$3.5 million in restructuring charges in H2 2025. With these adjustments, Rocket Pharmaceuticals expects its current cash resources, excluding any potential proceeds from a Priority Review Voucher from KRESLADI’s FDA approval, to fund operations into Q2 2027.
Rocket Pharmaceuticals Inc. (NASDAQ:RCKT) is a late-stage biotechnology company that focuses on developing gene therapies for rare and devastating diseases in the US.
3. Edgewise Therapeutics Inc. (NASDAQ:EWTX)
Number of Hedge Fund Holders: 42
Average Upside Potential as of July 30: 191.64%
Edgewise Therapeutics Inc. (NASDAQ:EWTX) is one of the biotech stocks to buy according to Wall Street analysts. On July 30, Raymond James analyst Martin Auster initiated coverage of Edgewise Therapeutics with a Strong Buy rating and a $46 price target. The firm believes the shares currently offer a highly attractive risk/reward profile.
A key upcoming catalyst is the release of results from Part D of the Phase 2 CIRRUS-HCM study in H2 2025, which, if positive, could meaningfully de-risk EDG-7500 for hypertrophic cardiomyopathy/HCM. The analyst also sees a potential path for the drug to avoid a risk evaluation and mitigation strategy/REMS.
Earlier in Q1 2025, Edgewise Therapeutics reported a net loss of $40.8 million, or $0.43 per share. In its muscular dystrophy program, Edgewise completed enrollment for the GRAND CANYON trial. The company anticipates releasing results from this pivotal trial in Q4 2026 and is continuing discussions with the FDA regarding a potential marketing authorization strategy for its candidate, sevasemten. Furthermore, Edgewise expects to release data from the Phase 2 LYNX and FOX trials for Duchenne muscular dystrophy in Q2 2025.
Edgewise Therapeutics Inc. (NASDAQ:EWTX) is a biopharmaceutical company that discovers, develops, and commercializes therapies for the treatment of muscle disorders.
2. REGENXBIO Inc. (NASDAQ:RGNX)
Number of Hedge Fund Holders: 35
Average Upside Potential as of July 30: 288.57%
REGENXBIO Inc. (NASDAQ:RGNX) is one of the biotech stocks to buy according to Wall Street analysts. On July 10, REGENXBIO announced the publication of preclinical results for its investigational gene therapy, called RGX-202, for Duchenne Muscular Dystrophy. The findings, published in the peer-reviewed journal Molecular Therapy Methods and Clinical Development, showed that a microdystrophin gene therapy construct including the C-terminal/CT domain showed improved functional benefits compared to a construct without it.
RGX-202 is unique among investigational or approved microdystrophin gene therapies for Duchenne in that it includes this crucial CT domain, making it the closest to naturally occurring dystrophin. The preclinical study evaluated two AAV vectors in mdx mice, a model for Duchenne. One vector encoded a microdystrophin protein with the CT domain, while the other encoded an equivalent microdystrophin without it.
The results showed that the microdystrophin with the CT domain was maintained at higher levels in transduced muscles, more effectively recruited the dystrophin-associated protein complex to the muscle membrane, and led to increased muscle force and resistance to damage in the dystrophin-deficient mice. These findings suggest that the CT domain enhances the microdystrophin design by promoting higher protein accumulation due to a longer half-life, which can lead to improved functional benefits.
REGENXBIO Inc. (NASDAQ:RGNX) is a clinical-stage biotechnology company that provides gene therapies that deliver functional genes to cells with genetic defects in the US.
1. Gossamer Bio Inc. (NASDAQ:GOSS)
Number of Hedge Fund Holders: 45
Average Upside Potential as of July 30: 308.65%
Gossamer Bio Inc. (NASDAQ:GOSS) is one of the biotech stocks to buy according to Wall Street analysts. On July 14, Scotiabank initiated coverage of Gossamer Bio with an Outperform rating and an $11 price target. The firm is optimistic about Gossamer Bio’s approach to treating pulmonary arterial hypertension/PAH and pulmonary hypertension associated with interstitial lung disease/PH-ILD.
Scotiabank highlighted seralutinib, which is Gossamer’s lead asset, for its potential to achieve significant market uptake due to its novel mechanism of action as an inhaled tyrosine kinase inhibitor. Seralutinib targets multiple growth factor receptors (PDGFRα/β, CSF1R, and c-KIT) implicated in PAH pathogenesis and is designed for direct delivery to the lungs via a dry powder inhaler. The firm views seralutinib as a complementary treatment to existing standard care.
A significant business development for Gossamer Bio earlier in Q1 2025 is the completion of new patient screening for the PROSERA study, which is its registrational Phase 3 trial for seralutinib in PAH. It closed enrollment on June 11 and reached a total of 390 patients. However, the timeline for announcing top-line results from the PROSERA study has been pushed to February 2026.
Gossamer Bio Inc. (NASDAQ:GOSS) is a clinical-stage biopharmaceutical company that focuses on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension/PAH in the US.
While we acknowledge the potential of GOSS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOSS and that has 100x upside potential, check out our report about this cheapest AI stock.
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