In this article, we will discuss the 9 Best Psychedelic Stocks to Buy in 2026.
The AdvisorShares Psychedelics ETF, a fund that primarily invests in the psychedelic drugs sector, is up 31% over the past year. That almost doubles the S&P 500’s 16% gain over the same timeframe. The performance also overshadows the Nasdaq Composite’s 24% rise over the same period.
Psychedelic drugs target treatment areas such as mental health conditions, where many patients have no better options. This sector has attracted big-name investors, including billionaire Peter Thiel. Billionaire New York Mets owner Steve Cohen is a major donor to psychedelic medicine projects as well.
Confidence in psychedelic drugs is growing in government circles. For instance, Health Secretary Robert F. Kennedy Jr. and FDA commissioner Marty Makary have commented favorably about the potential of psychedelic drugs to help veterans with mental health conditions.
Health Secretary Robert F. Kennedy Jr. recently told members of Congress, “This line of therapeutics has tremendous advantage if given in a clinical setting and we are working very hard to make sure that happens within 12 months.”
Moreover, some lawmakers are pushing for psychedelic drugs to help veterans struggling with brain health issues. In 2025, the Wall Street Journal reported on how US Representative Morgan Joe Luttrell, a retired Navy SEAL, addressed his mental health issue with a psychedelic substance.
Soaring sales of psychedelic drug Spravato is also fueling interest in the psychedelic sector. Spravato targets patients with treatment-resistant depression, and it got FDA approval in 2019. Its sales surpassed $1 billion in 2024 and are expected to hit $3 billion by 2027-2028.
According to Zion Market Research, the global psychedelic drugs market size could hit $9 billion by 2032 from $3 billion in 2023. The increasing awareness of the therapeutic potential of psychedelics and the growing prevalence of mental health problems are some of the factors driving this market growth.
With that background in mind, let’s now have a look at the 9 best psychedelic stocks to buy in 2026.
Methodology
For our list of the 9 best psychedelic stocks to buy in 2026, we began by identifying healthcare companies focused on developing psychedelic drugs using the AdvisorShares Psychedelics ETF and financial media reports. We picked out stocks with an average price upside potential of at least 10%. Additionally, we checked the Insider Monkey database to identify stocks that are favored by hedge funds as of Q4 2025. Finally, the stocks have been arranged in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Psychedelic Stocks to Buy in 2026
9. AbbVie (NYSE:ABBV)
Number of Hedge Fund Holders: 84
Average Upside Potential: 14.23%
AbbVie (NYSE:ABBV) is among the best psychedelic stocks to buy in 2026. AbbVie (NYSE:ABBV) expanded its psychiatry pipeline with the acquisition of psychedelic compound bretisilocin from Gilgamesh Pharmaceuticals in 2025. It paid $1.2 billion for bretisilocin, a Phase 2 psychedelic drug candidate being developed as a treatment for major depressive disorder. AbbVie has a broad portfolio of approved drugs and drug candidates targeting diverse health issues.
On March 12, Guggenheim reiterated its Buy rating and $242 on AbbVie (NYSE:ABBV) stock. For this renewed bullish stance, AbbVie, Guggenheim pointed to Skyrizi. The equity research firm is confident in the growth outlook for Skyrizi for many years to come. Guggenheim noted that while several drug candidates are being tested against Skyrizi, it sees little impact on Skyrizi sales. Moreover, the firm noted that AbbVie’s overall business is robust.
Previously, on March 9, William Blair reaffirmed its Outperform rating on AbbVie (NYSE:ABBV) stock, citing the potential of the company’s obesity drug candidate. The firm’s action came shortly after AbbVie announced topline results from a Phase 1 study of ABBV-295, an amylin analog drug candidate targeting obesity. According to William Blair, the results that ABBV-295 attained in that study are competitive in the amylin class.
AbbVie (NYSE:ABBV) is an American pharmaceutical company based in Illinois. It develops, manufactures, and sells drugs for a broad variety of medical issues. Its product portfolio includes treatments for various cancers and inflammatory diseases. It also makes skincare products. AbbVie is also making inroads in the psychedelic medicines space, bolstering its push in this area with its 2025 acquisition of Gilgamesh Pharmaceuticals’s psychiatry drug candidate.
8. Relmada Therapeutics Inc (NASDAQ:RLMD)
Number of Hedge Fund Holders: 28
Average Upside Potential: 62.18%
Relmada Therapeutics Inc (NASDAQ:RLMD) is among the best psychedelic stocks to buy in 2026. The company has several potential drugs at various stages of development. Its psychedelic drug candidate REL-P11 has completed a Phase 1 safety study as a potential treatment for metabolic diseases. REL-P11 is based on a formulation of a hallucinogenic substance called psilocybin. The company’s other drug candidate NDV-01 is being developed as a treatment for an aggressive form of bladder cancer.
On March 9, Mizuho reiterated its Outperform rating and $10 price target on Relmada Therapeutics stock. The firm pointed to the Phase 2 trial results for NDV-01 for its renewed bullish stance on the stock. The 12-month data from the study showed positive results. When it comes to assessing durability in a clinical program, a 12-month trial data readout is considered the gold standard. Moreover, this timeframe is also the FDA benchmark when it comes to evaluating efficacy in the form of bladder cancer that NDV-01 targets.
According to Mizuho, the 12-month response rate could put NDV-01 ahead compared to rival bladder cancer treatments in development or on the market.
Relmada Therapeutics Inc (NASDAQ:RLMD) is an American clinical-stage biotechnology company based in Florida. It focuses on the development of treatments for various conditions, including bladder cancer and metabolic diseases. Its portfolio includes at least drug candidates in Phase 2 trials, and at least one in a Phase 1 stage.
7. Bright Minds Biosciences Inc (NASDAQ:DRUG)
Number of Hedge Fund Holders: 22
Average Upside Potential: 70.06%
Bright Minds Biosciences Inc (NASDAQ:DRUG) is among the best psychedelic stocks to buy in 2026. The company has multiple psychedelic drug candidates, including potential medicines for epilepsy. Its flagship product candidate is BMB-101, which is being developed as a treatment for absence epilepsy.
On March 5, H.C. Wainwright weighed on Bright Minds Biosciences Inc. (NASDAQ:DRUG) stock, raising the price target to $145 from $115 while reaffirming a Buy rating. This action followed H.C. Wainwright’s meeting with the company’s management and a review of Phase 2 study data for the lead product candidate BMB-101.
Bright Minds Biosciences is developing BMB-101 as a treatment for drug-resistant absence seizures as well as developmental and epileptic encephalopathies. In the Phase 2 trial, the compound met the primary efficacy endpoints for both targeted indications. That study was dubbed the BREAKTHROUGH trial, and its data was released in January.
After reviewing the Phase 2 trial data for BMB-101, H.C. Wainwright raised its probability of success for BMB-101 to 60% from 25%.
New York-headquartered Bright Minds Biosciences Inc (NASDAQ:DRUG) is a biotechnology company developing therapeutics for neuropsychiatric disorders. Its portfolio features multiple drug candidates, including BMB-101, a potential treatment for epileptic encephalopathies and absence epilepsies. Its other drug candidates include BMB-201, BMB-202, and BMB-105.
6. Definium Therapeutics Inc (NASDAQ:DFTX)
Number of Hedge Fund Holders: N/A
Average Upside Potential: 103.44%
Definium Therapeutics Inc (NASDAQ:DFTX) is among the best psychedelic stocks to buy in 2026. The company’s flagship drug candidate, DT120, is undergoing Phase 3 trials for the treatment of major depressive disorder (MDD), generalized anxiety disorder (GAD), and other psychiatric conditions. Its other drug candidate, DT402, targets autism spectrum disorder and is undergoing Phase 2 trials.
Definium Therapeutics Inc (NASDAQ:DFTX) plans to host its Investor and Analyst Day on April 22. It plans to use the event to discuss DT120 program updates as well as commercial opportunities.
On February 26, Definium Therapeutics released its 2025 financial results and provided updates about its business. On the financial side, the company said it spent $117.7 million on R&D in 2025. General and administrative-related spending consumed $48.6 million. That said, the company exited 2025 with $411.6 million in cash and cash equivalents and investments. According to the management, this cash amount and expected milestones should be enough to bankroll the company’s operations into 2028.
Regarding business updates, Definium Therapeutics said it had completed enrollment for the Emerge Phase 3 MDD trial for DT120. Topline data from that study is expected in late Q2 2026. It further said enrollments for the two Phase 3 GAD trials for DT120 are progressing well. For the Phase 2a trial for DT402 that kicked off in Q4 2025, initial study data are expected in 2026.
Definium Therapeutics Inc (NASDAQ:DFTX) is an American clinical biopharmaceutical company headquartered in New York. The company is focused on developing drugs to treat mental health disorders. Its lead drug candidate DT120, currently in Phase 3 trial, targets major depressive disorder (MDD), generalized anxiety disorder (GAD), and other brain health conditions.
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