Markets

Insider Trading

Hedge Funds

Retirement

Opinion

9 Best Drug Stocks to Buy According to Analysts

In this article, we will look at the 9 Best Drug Stocks to Buy According to Analysts.

On April 27, Jurrien Timmer, director of global macro at Fidelity Investments, appeared on CNBC to talk about the market and oil prices, and how necessary it is for oil prices to retreat from their highs, among other things.

He was of the view that there is not a lot the Fed can do about a supply shock, as if there was a demand shock from fiscal stimulus, like what we saw in 2020 and 2021, it would have been a different story. The Fed acknowledged that it is powerless over a supply shock, and so raising rates just because oil prices are up does not serve much of a purpose. On the other hand, he also stated that cutting rates three more times, which is what was expected earlier this year, is not in the cards either. It is not needed as well, as the economy is running pretty well.

READ ALSO: 10 Best Booming Stocks to Buy According to Hedge Funds AND 8 Best Stem Cell Therapy Stocks to Buy.

Timmer further stated in terms of the market and oil prices that the market has moved on already, but the oil prices are still near $100, and so we have not had that round trip yet. That, according to him, is something that needs to happen before the markets can really and completely declare victory.

With these broader market trends in view, let’s look at the best drug stocks to buy according to analysts.

Our Methodology

We used the Finviz stock screener to make a list of the best drug stocks that analysts are bullish on and picked the top 9 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.

Note: All data was recorded on April 28.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

9 Best Drug Stocks to Buy According to Analysts

9. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)

Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is one of the best drug stocks to buy according to analysts. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) was downgraded to Hold from Buy by Jefferies on April 20, with the firm bringing the price target on the stock down to $22 from $30. Despite what it calls an “inexpensive valuation”, the firm cited new launches being “less impactful than expected” and a lack of meaningful upside catalysts for the downgrade.

For additional perspective, in its financial results for the three months and full year ended December 31, 2025, Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) reported net revenues of $183.1 million and $719.9 million, respectively. GAAP net income was $24.4 million, or $0.51 per share, and $98.1 million, or $2.03 per share, respectively, for fiscal Q4 and the full year. Management further reported that the adjusted non-GAAP net income came up to $34.2 million, or $0.73 per share, and $156.6 million, or $3.25 per share, respectively, for the quarter and full year.

Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) develops, manufactures, markets, and sells technically challenging generic and proprietary injectable, intranasal, inhalation, and insulin active pharmaceutical ingredients. The company’s operations are divided into the Finished Pharmaceutical Products and Active Pharmaceutical Ingredients segments.

8. Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)

Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) is one of the best drug stocks to buy according to analysts. On April 17, UBS initiated coverage of Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) with a Buy rating and set a $19 price target. The firm told investors in a research note that the recent share selloff on the macro environment offers an attractive entry point for the company’s “best-in-group growth profile”, adding that it believes the stock’s valuation suggests the market is discounting only modest and gradual revenue growth. UBS further stated that it believes that Amneal Pharmaceuticals’ (NASDAQ:AMRX) specialty growth, driven by its Parkinson’s products and emerging franchises, warrants a premium multiple.

In a separate development, Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) announced on April 13 that it entered into a definitive agreement to acquire 100% of Kashiv BioSciences, LLC. The transaction has consideration that includes $375 million of cash and $375 million of equity payable at closing. It also includes up to $350 million in potential payments based on the attainment of certain regulatory milestones, the funding of operations through closing, and potential royalties based on commercial milestones.

Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) is a medicine company that provides pharmaceuticals, with its product portfolio including generics, specialty, biosciences, and a product catalog. The company’s operations are divided into the following segments: Generics, Specialty, and AvKARE.

7. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)

ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) is one of the best drug stocks to buy according to analysts. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) announced on April 20 the launch of Pimozide Tablets 1 mg and 2 mg, with the Pimozide Tablets being the generic version of the reference listed drug (RLD) Orap®. The company reported that the US annual sales for Pimozide Tablets totaled approximately $3.1 million, based on February 2026 moving annual total (MAT) IQVIA data. Nikhil Lalwani, President and Chief Executive Officer of ANI Pharmaceuticals, Inc. (NASDAQ:ANIP), stated that the company is excited to “bring limited competition products to market” while continuing to offer generic alternatives to its patients and customers.

In another development, ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) announced the launch of Carbamazepine Extended-Release Capsules, 100 mg, 200 mg, and 300 mg on April 13. The company stated that its Carbamazepine Extended-Release Capsules are the generic version of the reference listed drug (RLD) Carbatrol®. It further reported that the US annual sales for Carbamazepine Extended-Release Capsules totaled approximately $65 million, based on February 2026 moving annual total (MAT) IQVIA data.

ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) is a bio-pharmaceutical company that develops, manufactures, and markets branded and generic prescription pharmaceuticals. The company’s operations are divided into the Generics, Established Brands, and Other, and Rare Disease segments.

6. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA)

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) is one of the best drug stocks to buy according to analysts. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) announced its fiscal Q1 2026 financial results on April 28 and also provided updates regarding its recent portfolio execution. The company reported that net product revenue for ARCALYST® in fiscal Q1 2026 reached $214.3 million, representing 56% year-over-year growth. The company experienced growth in both new and repeat prescribers as fiscal Q1 progressed, which offered momentum for its ARCALYST franchise for the rest of the year. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) thus raised its 2026 ARCALYST net sales guidance to between $930 and $945 million from between $900 and $920 million. Total revenue for fiscal Q1 rose to $214.3 million, compared to $137.8 million for the first quarter of 2025.

The company further reported that the KPL-387 Phase 2 recurrent pericarditis data is expected in the second half of 2026, with the Phase 3 pivotal trial expected to initiate by the end of the year. In addition, management stated that the fiscal Q1 2026 cash balance grew to $468.1 million.

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) is a commercial-stage biopharmaceutical company that discovers, acquires, develops, and commercializes therapeutic medicines for patients suffering from debilitating diseases with significant unmet medical needs.

While we acknowledge the potential of KNSA 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 KNSA and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Drug Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s what to do next:

1. Subscribe to our Premium Readership Newsletter for just $9.99 a month. (33% Off – was $14.99).

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

<b>Cancel anytime.</b> Turn off auto-renewal via our website with just a click.

 

Buy This $3 Stock Now Before the 400% Surge Begins

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

Since March 2017, my stock picks have returned 16.5% annually. Today, I’ve found an opportunity even bigger than my British American Tobacco call.

Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

Get the ticker for our new “Underdog” pick and the full BTI case study for just 99 cents.

This exclusive offer is for NEW newsletter subscribers ONLY! Join our Premium Readership Newsletter for only $0.99 and become part of a savvy investor community.!

This offer vanishes in 7 days, so don’t miss your chance to lock in market beating returnsSign up NOW! The monthly newsletter comes with a 30-day, no-risk money-back guarantee. This offer is available to the first 1000 new investors who respond.

Regular price $9.99/mo. Cancel anytime.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $0.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Regular price $9.99/mo. Cancel anytime.