In this article, we will look at the 12 Best Drug Stocks to Buy Right Now.
On September 10, FDA Commissioner Dr. Marty Makary appeared on CNBC’s ‘Squawk Box’ to talk about the agency’s crackdown on misleading pharmaceutical advertisements.
The Food and Drug Administration announced a crackdown on misleading drug company ads, stating that it intends to send out thousands of warning letters along with around 100 cease and desist letters.
Dr. Marty stated that these ads are, by regulation, supposed to create a fair balance of information. According to him, doctors are united on the issue, with the consensus being that these ads have “distorted the doctor-patient relationship” because they create increased demand for medications, which are often considerably expensive, regardless of their clinical appropriateness.
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He added that the US is, in fact, one of the only two countries in the world that tolerate ads at this pace, and so a majority of doctors believe that deciding the best medication should be left up to them.
Dr. Marty further stated that things changed in 1997 when a regulatory loophole allowed the companies to add the side effects on a website or somewhere else besides in the ad. The FDA is taking action to close that very loophole, which would require more disclosures and longer ads that may make the advertisements no longer feasible.
With these trends in view, let’s look at the best drug stocks to buy right now.
Our Methodology
We used stock screeners to make a list of top drug stocks and selected the top 12 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 12.
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).
12 Best Drug Stocks to Buy Right Now
12. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 55
Biogen Inc. (NASDAQ:BIIB) is one of the best drug stocks to buy right now. In a report released on September 12, Sumant Kulkarni from Canaccord Genuity reiterated a Buy rating on Biogen Inc. (NASDAQ:BIIB) and set a price target of $220.00.
Biogen Inc. (NASDAQ:BIIB) reported total revenue of $2.6 billion in its fiscal Q2 2025 results, up 7% year-over-year. GAAP diluted EPS for the quarter reached $4.33, up 8% year-over-year. Non-GAAP diluted EPS also rose 4% year-over-year to $5.47.
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases worldwide.
Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS).
11. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 57
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best drug stocks to buy right now. Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced on September 9 that it attained Fast Track designation from the U.S. Food and Drug Administration for emrusolmin, which is an investigational treatment for Multiple System Atrophy (MSA) in Phase 2 development.
Management reported that there is an urgent need for new therapeutic options targeting MSA, a devastating and rare neurodegenerative disorder, because of the absence of treatments available that affect disease progression.
Part of a strategic collaboration with MODAG GmbH, a privately held German biotech company, emrusolmin is in the process of being evaluated in a Phase 2 trial to assess its efficacy and safety. Emrusolmin is a small molecule targeting the alpha synuclein protein, believed to be pivotally involved in the pathogenesis of MSA.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) added that the U.S. FDA granted Orphan Drug designation to emrusolmin for MSA in 2022.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments.
Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
10. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Holders: 59
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is one of the best drug stocks to buy right now. On September 5, RBC Capital raised the firm’s price target on Neurocrine Biosciences, Inc. (NASDAQ:NBIX) to $149 from $144 while keeping an Outperform rating on the shares.
The firm told investors in a research note that, according to its latest analysis of prescription trends, Crenessity’s strong launch is expected to continue, with the drug exceeding Q3 consensus estimates.
It added that shares look to have appreciated closer to fair value, which may point towards increasing near-term optimism.
The same day, Sean Laaman from Morgan Stanley also expressed bullish sentiments for Neurocrine Biosciences, Inc. (NASDAQ:NBIX), giving the stock a Buy rating with a $163 price target.
Currently, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) has an analyst consensus of Strong Buy, with the stock’s median price target of $141.87 implying an upside of 19.83% from current levels.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company with a focus on neuroscience. It is involved in the research and development, sale, and commercialization of pharmaceuticals that treat neuroendocrine, neurological, and neuropsychiatric disorders.
The company’s product portfolio includes treatments for chorea associated with Huntington’s disease, tardive dyskinesia, classic congenital adrenal hyperplasia (CAH), and endometriosis and uterine fibroids.
9. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN) is one of the best drug stocks to buy right now. Amgen Inc. (NASDAQ:AMGN) reported its fiscal Q2 2025 earnings on August 5, with total revenues increasing 9% to $9.2 billion compared to Q2 2024. GAAP earnings per share (EPS) rose 92% from $1.38 to $2.65, primarily attributed to higher revenues.
In a report released on September 5, Vamil Divan from Guggenheim maintained a Hold rating on Amgen Inc. (NASDAQ:AMGN), setting a price target of $288.00.
However, Raymond James assumed coverage of the stock on September 3 with a Market Perform rating without assigning a price target.
The firm told investors that a meaningful extent of Amgen Inc.’s (NASDAQ:AMGN) valuation is for MariTide, whose clinical profile warrants its place as more of a niche player in the obesity market.
Amgen Inc.’s (NASDAQ:AMGN) analyst consensus is a Moderate Buy, with its median price target of $276.39 implying an upside of 12.16% from current levels.
Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that discovers, develops, manufactures, and markets human therapeutics. It delivers new therapies for patients with complex cancers, especially in areas with significant unmet needs.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best drug stocks to buy right now. On September 8, BMO Capital analyst Evan Seigerman maintained a Hold rating on Bristol-Myers Squibb Company (NYSE:BMY), retaining the price target of $47.00.
The analyst attributed the rating to the performance of Cobenfy, the company’s new product, in the market, stating that its growth has been stable with a modest percentage increase in the weekly prescription rates.
However, he added that the growth failed to meet the levels expected by some investors for H2 2025. The revenue estimates for the product in Q3 fall slightly below consensus estimates, supporting the Hold rating.
Similarly, William Blair analyst Matt Phipps maintained a neutral stance on Bristol-Myers Squibb Company (NYSE:BMY) on September 5, giving the stock a Hold rating.
The analyst told investors that although Bristol-Myers Squibb Company (NYSE:BMY) is exhibiting some advancements, including several promising datasets presented at the 2025 IASLC World Conference on Lung Cancer, concerns persist regarding the effectiveness of the VEGF mechanism in delivering a meaningful survival benefit in a global population of NSCLC patients.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
7. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best drug stocks to buy right now. In a report released on September 12, Simon Baker CFA from Redburn Atlantic maintained a Buy rating on Gilead Sciences, Inc. (NASDAQ:GILD) and set a price target of $143.00.
In other news, Gilead Sciences, Inc. (NASDAQ:GILD) announced on August 26 that it attained marketing authorization for Yeytuo (lenacapavir) from the European Commission (EC).
Yeytuo is the company’s twice-yearly injectable HIV-1 capsid inhibitor that is used as “pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk who weigh at least 35kg”.
Management reported that Yeytuo is the first and only twice-yearly PrEP option to be approved for use in the 27 member states of the European Union, including Iceland, Norway, and Liechtenstein.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biotech company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19.
Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
6. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 75
Zoetis Inc. (NYSE:ZTS) is one of the best drug stocks to buy right now. Zoetis Inc. (NYSE:ZTS) announced on September 12 the adoption of a positive opinion by the Committee for Veterinary Medicinal Products (CVMP) of the European Medicines Agency (EMA) regarding recommending the granting of marketing authorization for Portela (relfovetmab).
Portela is a new monoclonal antibody (mAb) therapy intended to alleviate pain associated with osteoarthritis (OA) in cats. Zoetis Inc. (NYSE:ZTS) reported that if approved, Portela would be the first long-acting anti-nerve growth factor (NGF) mAb therapy for cats.
It is designed to offer “three months of osteoarthritis (OA) pain relief with a single injection,” as it targets NGF, a key mediator of OA pain.
Management further reported that the CVMP recommended the grant of marketing authorization based on a positive benefit-risk balance of the safety and efficacy data submitted.
Zoetis Inc. (NYSE:ZTS) is a global animal health company that focuses on the discovery, development, manufacture, and commercialization of vaccines, medicines, biodevices, genetic tests, diagnostic products, and precision animal health.
Its operations are divided into the United States and International segments. Each segment boasts a diversified product portfolio, including vaccines, parasiticides, pain and sedation, animal health diagnostics, and more.
The company markets its products in around 45 countries across the globe and specializes in products across eight core species: companion animals (dogs, cats, and horses), cattle, swine, livestock (sheep and fish), and poultry.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best drug stocks to buy right now. In a report released on September 5, Vamil Divan from Guggenheim maintained a Buy rating on Pfizer Inc. (NYSE:PFE), setting a price target of $33.00.
In other news, Pfizer Inc. (NYSE:PFE) and BioNTech SE announced on September 8 positive topline results from an ongoing Phase 3 clinical trial cohort “evaluating the safety, tolerability, and immunogenicity of a 30-µg dose of the LP.8.1-adapted monovalent COMIRNATY® 2025-2026 Formula in adults aged 65 and older and in adults aged 18 through 64 with at least one underlying risk condition for severe COVID-19.”
Management reported that the preliminary data exhibited considerable growth in neutralizing antibodies targeting the LP.8.1 sublineage of SARS-CoV-2 after the vaccination, reinforcing pre-clinical data that supported the recent U.S. Food and Drug Administration (FDA) approval of the LP.8.1-adapted COVID-19 vaccine demonstrating improved immune responses against multiple circulating SARS-CoV-2 sublineages.
Pfizer Inc. (NYSE:PFE) also reported that the vaccine’s safety profile was consistent with previous studies, and no new safety concerns were identified.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
4. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV) is one of the best drug stocks to buy right now. In a report released on September 11, Vamil Divan from Guggenheim reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV), setting a price target of $227.00.
In its fiscal Q2 2025 results, AbbVie Inc. (NYSE:ABBV) reported a diluted EPS of $0.52 on a GAAP basis, reflecting a decrease of 32.5%. Adjusted diluted EPS for the quarter reached $2.97, up 12.1%. Management reported that the results included an “unfavorable impact of $0.42 per share.”
Furthermore, AbbVie Inc. (NYSE:ABBV) delivered net revenues of $15.423 billion in fiscal Q2 2025, up 6.6% on a reported basis or 6.5% on an operational basis.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the best drug stocks to buy right now. On September 10, Leerink Partners analyst Daina Graybosch maintained a bullish stance on Merck & Co., Inc. (NYSE:MRK), giving the stock a Buy rating.
The analyst gave the optimistic rating due to Merck & Co., Inc.’s (NYSE:MRK) strategic position in the competitive landscape of antibody-drug conjugates (ADCs) to treat extensive-stage small cell lung cancer (ES-SCLC).
J.P. Morgan analyst Chris Schott also maintained a bullish stance on Merck & Co., Inc. (NYSE:MRK) on the same day, giving the stock a Buy rating with a price target of $120.00.
Merck & Co., Inc. (NYSE:MRK) has an analyst consensus of Moderate Buy, and its median price target of $82.81 implies an upside of 20.76% from current levels.
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people.
Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ) is one of the best drug stocks to buy right now. On September 10, Guggenheim analyst Vamil Divan reiterated a Hold rating on Johnson & Johnson (NYSE:JNJ) and set a price target of $167.00.
The rating update followed Johnson & Johnson’s (NYSE:JNJ) announcement on September 9 that the U.S. Food and Drug Administration (FDA) approved INLEXZO (gemcitabine intravesical system).
INLEXZO is an innovative, “potentially practice-changing approach” for the treatment of certain bladder cancer types, “addressing the need for additional options following unsuccessful BCG therapy and for patients refusing or ineligible for bladder removal surgery (radical cystectomy).”
Management further reported that INLEXZO, previously referred to as TAR-200, is indicated for the “treatment of adult patients with Bacillus Calmette-Guérin (BCG)-unresponsive, non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (CIS), with or without papillary tumors.”
Designed for patients seeking bladder preservation, INLEXZO is the first and only intravesical drug-releasing system (iDRS) that offers extended local delivery of a cancer medication into the bladder.
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech.
The MedTech segment includes an elaborate range of medical devices and products used in cardiovascular intervention, orthopedics, interventional solutions, surgery, and vision fields.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders:
Eli Lilly and Company (NYSE:LLY) is one of the best drug stocks to buy right now. Citi analyst Geoff Meacham maintained a Buy rating on Eli Lilly and Company (NYSE:LLY) on September 10, retaining the price target of $1,190.00.
The analyst supported the optimistic outlook with the promising outlook for the company’s obesity treatment, tirzepatide, stating that the treatment attained the highest cost-effectiveness rating in the recent draft report by ICER.
According to the analyst, this highlights tirzepatide’s superior efficacy in weight loss compared to lifestyle modifications alone, and the positive evaluation is anticipated to boost payer coverage and streamline access to the drug as the value of weight loss and cardiovascular benefits gains increased recognition.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
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