In this article, we will be taking a look at the 7 Best Psychedelic Stocks to Buy According to Analysts.
As the psychedelic drug industry shifts from a speculative niche to a potential part of mainstream healthcare, investors have started to keep a careful eye on it. Over the past year, the AdvisorShares Psychedelics ETF, which primarily focuses on psychedelic-related businesses, has increased by 31%, outpacing the Nasdaq Composite by 24% and the S&P 500 by 16%.
Investor confidence has grown alongside increasing recognition of psychedelics’ potential in treating mental health conditions, particularly for patients with limited treatment options. The sector has attracted high-profile investors, including billionaire Peter Thiel and New York Mets owner Steve Cohen, while government support has also increased. Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary have expressed optimism about psychedelic therapies, especially for veterans suffering from mental health challenges. Kennedy recently told Congress that these treatments could offer significant benefits when administered in clinical settings and that efforts were underway to advance their availability within 12 months.
Following the success of Johnson & Johnson’s Spravato, an FDA-approved medication for treatment-resistant depression that has been on the market since 2019, commercial momentum has also increased. Sales of the medication exceeded $1 billion in 2024 and are expected to reach $3 billion by 2027–2028, demonstrating the rising need for innovative mental health therapies.
Market projections further support the sector’s expansion. According to Zion Market Research, growing mental health issues and greater knowledge of psychedelic therapies might propel the global market for psychedelic pharmaceuticals from $3 billion in 2023 to $9 billion by 2032. The market as a whole was estimated to be worth $4.51 billion in 2024 and is projected to rise at a compound annual growth rate of 16.8% to reach $15.62 billion by 2032.
The advancement of regulations and commercial scalability will probably determine the next stage of expansion. Despite the uncertainty caused by the FDA’s rejection of MDMA-assisted therapy, 2026 is still a crucial year since late-stage clinical breakthroughs from firms like Compass Pathways and Definium Therapeutics are anticipated to have an impact on the industry’s future. Psychedelics are being positioned as a potential cornerstone of future mental healthcare as the business concentrates on clinical validation, therapist training, and regulated therapy models.
With that said, let’s now move on to the best psychedelic stocks.
Photo by Florian van Duyn on Unsplash
Our Methodology
For our methodology, we screened psychedelic stocks with analyst upside potential of at least 20%. From this list, we selected companies with the most recent news and developments and ranked them in ascending order based on their analyst upside as of July 7. These stocks are also favored by hedge funds.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Here is our list of the 7 best psychedelic stocks to buy according to analysts.
7. Definium Therapeutics, Inc. (NASDAQ:DFTX)
Price Target Upside: 28.15%
Definium Therapeutics, Inc. (NASDAQ:DFTX) is one of the best psychedelic stocks on our list.
TheFly reported on June 30 that Canaccord reduced its price target on DFTX to $58 from $60 while reaffirming a Buy rating on the shares. The firm noted that the company recently delivered strong Phase 3 results from the EMERGE trial evaluating DT120, an orally disintegrating LSD d-tartrate tablet for major depressive disorder. The positive clinical outcome was well received by investors and enabled Definium to raise approximately $805 million in new capital. Canaccord updated its financial model to reflect the recent financing transaction and the resulting increase in the company’s outstanding share count.
Separately, it was reported on June 25 that Definium Therapeutics, Inc. announced the completion of its previously disclosed underwritten public offering of 23,676,471 common shares, including the full exercise of the underwriters’ option for additional shares. The shares were sold at a public offering price of $34.00 per share, generating approximately $805 million in gross proceeds before expenses. Definium plans to allocate the proceeds toward advancing its research and development programs, preparing for the potential commercialization of DT120 ODT if approved, and supporting general corporate needs. J.P. Morgan, Jefferies, Leerink Partners, and BofA Securities served as joint lead bookrunners for the offering, which closed on June 25, 2026.
Definium Therapeutics, Inc. (NASDAQ:DFTX) is a clinical-stage biopharmaceutical company developing psychedelic and psychoplastogenic therapies for brain health disorders, including anxiety, depression, and autism spectrum disorder.
6. COMPASS Pathways plc (NASDAQ:CMPS)
Price Target Upside: 38.57%
COMPASS Pathways plc (NASDAQ:CMPS) is one of the best psychedelic stocks on our list.
TheFly reported on July 7 that Oppenheimer reaffirmed its Outperform rating and $20 price target on CMPS shares following new Phase 3 COMP006 26-week results. The firm stated that the data further support the sustained effectiveness of COMP360 in patients with treatment-resistant depression. Oppenheimer believes the latest findings strengthen the company’s regulatory outlook, including a planned NDA submission in the fourth quarter, while reinforcing the potential for the first FDA approval of a classical psychedelic therapy. The firm also views the stock’s commercial opportunity as not fully reflected in its current valuation ahead of a possible first-half 2027 launch.
On the same day, COMPASS Pathways plc (NASDAQ:CMPS) reported 26-week results from Part B of its ongoing Phase 3 COMP006 study evaluating COMP360 for treatment-resistant depression. The findings showed sustained clinical benefits and confirmed the therapy’s rapid onset of action in a population with long-standing, difficult-to-treat depression. The company said 39% of patients receiving the 25 mg dose achieved a clinically meaningful improvement by Week 6, with benefits generally maintained through Week 26. COMP360 also continued to demonstrate a favorable safety profile.
COMPASS Pathways plc (NASDAQ:CMPS) is a UK-based biotechnology company developing psychedelic-based therapies for mental health disorders. Its lead candidate, COMP360, is a synthetic psilocybin treatment combined with psychological support for treatment-resistant depression.
While we acknowledge the potential of CMPS 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 CMPS and that has 100x upside potential, check out our report about the cheapest AI stock.
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