In this article, we will be taking a look at the 7 Oversold Pharma Stocks to Buy Now.
In 2024, the pharmaceutical sector in the United States was valued at $634.32 billion, and by 2030, it is expected to have grown to $883.97 billion. Customized medication, which is predicted to increase from $169.56 billion in 2024 to $307.04 billion by 2033, growing at 6.82% CAGR, is the main driver of this expansion. Despite expensive development costs and a lack of clinical standards, expansion is driven by advances in sequencing, the need for individualized treatments, and supporting regulations.
Following the implementation of policy changes during Donald Trump’s second term, the pharmaceutical industry in the United States has experienced substantial changes. The administration started a “Build It Here” campaign in 2025 to increase domestic manufacturing and slapped a 100% tariff on imported brand-name medications. The implementation of TrumpRx.gov and Most-Favored-Nation pricing orders are two more initiatives aimed at bringing American prescription prices into line with those of other developed countries. A larger movement toward cost containment and pharmaceutical self-sufficiency has been strengthened by regulatory reforms, which have also expedited the approval of generic and biosimilar products.
Industry hazards also persist despite optimism. The loss of market exclusivity for well-known medications like Keytruda and Eliquis has prompted the Boston Consulting Group to warn of an impending $350 billion worldwide patent cliff. According to analysts, research and development driven by gene treatments, biologics, and artificial intelligence will maintain growth. Deloitte, PwC, and S&P Global Ratings are among the firms that predict robust credit conditions supported by substantial cash reserves, ongoing industrial innovation, and increased merger and acquisition activity.
Michael Yee of UBS recently pointed to robust early-year dealmaking and forecast improved performance in 2026 for pharmaceutical and biotech companies. He highlighted particular strength in cardiometabolic, obesity, cardiovascular, and oncology segments, especially as major patent expirations approach in 2028 and 2029.
With that being said, let’s now take a look at the oversold pharma stocks.
Our Methodology
For our methodology, we began by filtering stocks with a Relative Strength Index (RSI) of under 65 and positive analyst upsides. From this list, we picked the 7 best stocks and ranked them in ascending order based on their RSI. We have also mentioned their analyst upsides.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of 7 oversold pharma stocks to buy now.
7. Hims & Hers Health, Inc. (NYSE:HIMS)
Relative Strength Index: 16.68
Price Target Upside: 94.39%
Hims & Hers Health, Inc. (NYSE:HIMS) is one of the most oversold stocks.
HIMS declared on February 19, 2026, that it has finalized a deal to purchase Eucalyptus for a maximum of $1.15 billion, subject to usual adjustments. The remaining consideration will consist of guaranteed deferred payments over the next 18 months and subsequent earnouts linked to certain financial milestones through early 2029. The business will pay about $240 million in cash upon closing.
Hims & Hers Health, Inc. (NYSE:HIMS) anticipates using current cash and future U.S. operating cash flows to finance the agreement, and it may choose to fund the majority of the deferred and earnout amounts in cash or shares. It is expected that the transaction will close in the middle of 2026, subject to regulatory approvals and other standard conditions.
In other news, on the same day, HIMS moved forward with plans to sell a $49 oral semaglutide weight-loss pill but quickly reversed course after facing immediate backlash from Novo Nordisk (NVO) and U.S. regulators. Within two days of the announcement, the company pulled the offering after the FDA commissioner characterized such products as “illegal copycats.” The abrupt retreat has raised questions about the company’s future growth strategy following the failed launch.
Hims & Hers Health, Inc. (NYSE:HIMS) is a direct-to-consumer telehealth company that provides prescription medications and wellness products in areas such as dermatology, mental health, sexual health, and primary care through its online platform.
6. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Relative Strength Index: 40.53
Price Target Upside: 36.79%
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is one of the most oversold stocks.
TheFly reported on February 17 that Truist reduced its price target on NBIX to $140 from $169 and maintained a Buy rating on the stock. The increase came after management’s 2026 projection, and the company’s fourth-quarter results were included in the firm’s financial model.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) announced its fourth-quarter and full-year 2025 financial results earlier on February 11, which show strong top-line growth. According to the report, overall net product sales increased by 29% and 22% year over year to $798.3 million in Q4 and $2.83 billion for the entire year, respectively.
INGREZZA generated $657.5 million in fourth-quarter sales and $2.51 billion for the full year, reflecting 7% and 9% annual growth, which is supported by strong prescription demand but partially offset by lower net pricing tied to formulary access investments. Additionally, the report also shows that CRENESSITY contributed $135.3 million in Q4 sales and $301.2 million for the year, which is driven by robust patient enrollment and reimbursement coverage.
Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is a biopharmaceutical company developing treatments for neurological and endocrine-related disorders, focusing on innovative therapies for conditions like movement disorders, epilepsy, and hormonal diseases.
