In this article, we will be taking a look at the 9 Most Undervalued Pharma Stocks to Buy Right Now.
The U.S. pharmaceutical industry in 2025 remains one of the nation’s most dynamic and profitable economic sectors. Valued between $520 billion and $720 billion this year, the industry commands roughly 42% of the global pharmaceutical market, according to Precedence Research and Nova One Advisor.
It is estimated that the market of Personalized Medicine in the United States will skyrocket to $307.04 billion by 2033, out of $169.56 billion in 2024, with a CAGR of 6.82% between 2025 and 2033. Angular transactions in next-generation sequencing, increased demand for customized treatments, and government support of relevant policies are among the major growth factors. Drug diagnostics and treatment are being made more accurate due to the introduction of technologies such as AI and machine learning, transforming personalized care. The market has issues such as expensive development and low levels of clinical standardization.
In the second term of his presidency, President Donald Trump has introduced a series of changes affecting drug pricing, manufacturing in America, and the pharmaceutical trade balance. In 2025, a 100% tariff on imported brand drugs was declared, which motivated companies to move production to the U.S. under a Build It Here requirement.
The White House also introduced the TrumpRx.gov platform and Most-Favored-Nation (MFN) pricing orders to pressure firms into aligning domestic prices with those in other advanced economies. These policies, paired with regulatory reforms streamlining approvals for generics and biosimilars, mark a decisive shift toward pharmaceutical self-reliance and cost containment.
The mood of analysts about the prospects of the U.S. pharmaceutical market is optimistic but with reservations. The Boston Consulting Group cautions about the impending so-called patent cliff that might wipe out $350 billion in yearly revenues in the global market as medications such as Keytruda and Eliquis lose their exclusivity, but anticipates further expansion with investments in biologics, gene therapies, and AI-based research and development.
Deloitte and PwC also forecast more innovation and acquisitions as pharmaceutical firms shift to digital technology and seek additional therapy breakthroughs. According to S&P Global Ratings, the credit perspective of the sector is stable, as the revenue streams and the cash reserves counter the pressure on pricing and regulatory value.
With that being said, let’s now look at the most undervalued pharma stocks you could buy right now.
Our Methodology
For our methodology, we first screened pharmaceutical stocks using a stock screener, applying filters that included a forward P/E ratio between 8 and 18 and a positive price target upside. From the resulting list, we selected the top 11 stocks with the lowest P/E ratios and ranked them accordingly. Each stock’s upside potential, calculated as of December 13, is also highlighted in the subheadings.
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 the 9 most undervalued pharma stocks to buy right now.
9. AbbVie Inc. (NYSE:ABBV)
Forward P/E Ratio: 15.95
Price Target Upside: 11.95%
AbbVie Inc. (NYSE:ABBV) is among the most undervalued stocks.
TheFly reported on December 15 that Bank of America (BofA) lowered its price target for ABBV to $233 from $248 while maintaining a Neutral rating, reflecting a modestly reduced valuation outlook even as the company’s core business fundamentals remain solid.
On December 10, HSBC also raised its rating on ABBV from Hold to Buy and increased its price target to $265, signaling greater confidence in ABBV’s growth prospects.
The divergent analyst perspectives relate in part to AbbVie Inc. (NYSE:ABBV)’s ongoing transition away from Humira toward newer immunology products Skyrizi and Rinvoq. These drugs have been strong revenue drivers in 2025. According to recent reporting, Skyrizi and Rinvoq together generated about $18.5 billion in sales in the first nine months of 2025.
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that discovers, develops, manufactures, and sells a diverse portfolio of advanced therapies. It is a major player in the immunology, oncology, neuroscience, and aesthetics markets.
8. Novo Nordisk A/S (NYSE:NVO)
Forward P/E Ratio: 13.74
Price Target Upside: 19.69%
Novo Nordisk A/S (NYSE:NVO) is among the most undervalued stocks.
On December 15, 2025, UBS reaffirmed its Neutral (Hold) rating on NVO with an unchanged price target of DKK 295, reflecting a cautious view on the stock amid competitive pressures and mixed industry dynamics. UBS’s rating and target were reiterated in recent analyst research, with the Neutral outlook suggesting neither strong upside nor a compelling near‑term buy signal.
A key recent development supporting Novo Nordisk A/S (NYSE:NVO)’s growth strategy occurred on December 12, 2025, when the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion recommending EU approval of a higher 7.2 mg dose of Wegovy (semaglutide). This higher dose demonstrated significantly greater average weight loss in clinical trials compared to the currently approved 2.4 mg dose and, if formally approved by the European Commission, could become available in early 2026.
The higher Wegovy dosage is also under regulatory review in the U.S., U.K., and other regions, with NVO having submitted the filing in the U.S. and receiving an expedited review designation.
Novo Nordisk A/S (NYSE:NVO) is a Danish multinational pharmaceutical company. It is a world leader in diabetes and obesity care, producing approximately half of the world’s insulin.
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