Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
5 Best Pharmaceutical Stocks to Buy in Q2 2025
In this guide
Trade your favourite markets with our top-rated broker, .
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
This page gives you our top five pharma companies to invest in right now. Our experts have analysed the markets to choose the best stocks and a solid track record of success. Keep reading to find out which ones we’ve chosen, along with the reasons why.
What are the top pharmaceutical stocks to buy?
Copy link to sectionThe table below ranks the best pharma companies in order of their future growth potential, as chosen by our team of experts. You can quickly find their up-to-date stock price through the table below, or scroll down to find out more information about each company.
| # | Stock symbol | Company name | Learn more |
|---|---|---|---|
| 1 | PFE | Pfizer Inc. | Learn more > |
| 2 | LLY | Eli Lilly. | Learn more > |
| 3 | JNJ | Johnson & Johnson | Learn more > |
| 4 | TEVA | Teva Pharmaceuticals Limited | Learn more > |
| 5 | NVS | Novartis AG | Learn more > |
1. Pfizer Inc. (NYSE:PFE)
Copy link to section- Market Cap: $156 billion
- 2023 Revenue: $19.7 billion
- Forward Revenue Growth: -14.5%
- Dividend yield: 6%
- P/E Ratio: 11
- Stock Price: $27.5
Pfizer is one of the biggest pharmaceutical companies in the world with annual sales of over $50 billion. Its sales peaked at $100 billion in 2021 due to its Covid-19 vaccine, which was sold internationally.
Since then, Pfizer’s business has struggled to adapt, which explains why the stock has plunged from about $60 in 2021 to $27.
Pfizer has also worked to embrace a new normal of weaker sales by acquiring several companies. It bought Seagen, a cancer drug company for $43 billion in 2023. It also bought Biohaven, another company manufacturing cancer drugs.
Pfizer’s biggest challenge is that these acquisitions have left it saddled with over $60 billion in debt. Fortunately, the company’s stock is now highly undervalued as it trades at an 11 PE ratio and a dividend yield of 6%. All this makes Pfizer a turnaround company.
2. Eli Lilly (LLY)
Copy link to section- Market Cap: $790 billion
- 2023 Revenue: $34 billion
- Forward Revenue Growth: 22%
- Dividend yield: 0.50%
- P/E Ratio: 64
- Stock Price: $878
Eli Lilly has become one of the best-performing pharmaceutical companies in the world because of its market share in the diabetes and weight loss industry.
The company’s growth has been organic and through acquisitions. Some of the most popular acquisitions were the likes of POINT Biopharma, Versanis Bio, and Sigilon Therapeutics.
Eli Lilly’s business has done well in the past few years. Its revenue has surged from over $22.3 billion in 2019 to over $34.1 billion in 2023. It has also become a highly profitable company with annual revenues of over $5.2 billion.
The company has more room to grow, especially as the weight loss drug industry grows. It, together with Novo Nordisk has become a duopoly in a sector that is expected to generate over $100 billion annually. Eli Lilly has also moved to the fast-growing Alzheimer’s industry with its Donanemab drug.
3. Johnson & Johnson (NYSE: JNJ)
Copy link to section- Market Cap: $350 billion
- 2023 Revenue: $85 billion
- Forward Revenue Growth: -1.0%
- Dividend yield: 3.4%
- P/E Ratio: 13
- Stock Price: $145
Johnson & Johnson is a giant, it’s one of the largest companies in the world and has been at the forefront of American healthcare for decades. It takes in around $90bn in revenue every year and sells everyday consumer healthcare products as well as developing its own treatments.
Pharmaceuticals bring in more than half J&J’s revenue, so researching new drugs and vaccines is crucial to the business. It has earned its place on this list by developing new cancer treatments in particular in recent years, which has meant the stock price has been trending up for a long time.
While J&J might not give you explosive growth, it’s a company you can rely on. It has increased its dividend for 58 straight years in a row, and seen off every different type of economic environment. There’s no reason to expect that to change any time soon.
Johnson & Johnson has become one of the most undervalued companies in the industry, trading at a PE ratio of 13.7. This valuation happened as the stock crashed from $181 in 2022 to about $145. It also happened after the company agreed to pay $6.5 billion to resolve its talc cancer lawsuits.
Still, the company has made some corrective measures, including spinning off its consumer health business into a publicly-traded company known as Kenvue.
4. Teva Pharmaceutical Industries Ltd (TEVA)
Copy link to section- Market Cap: $19.4 billion
- 2023 Revenue: $15.8 billion
- Forward Revenue Growth: 3.6%
- Dividend yield: N/A%
- P/E Ratio: 7.08
- Stock Price: $17
Teva is an Israeli-based pharma company that specialises in developing ‘generic’ drugs. That means it produces copycat versions of drugs created by other companies to sell at a lower cost once the patent for the original runs out.
Generic drugs are big business, and Teva is the largest manufacturer of them in the world. Despite that, it went through a tough few years that sent its stock plummeting by over 50% between 2015 and 2020. Recently, however, the company has bounced back and its stock has more than doubled in the past five years as its revenue steadied around $15 billion.
It’s made this list as one of the cheapest pharma companies out there. It still rakes in more than $15bn in revenue every year but its share price is significantly lower than the competition. As a company trading well below its value, it could represent a bounce back candidate for anyone who wants to take the plunge right now.
5. Novartis AG (SWX:NOVN)
Copy link to section- Market Cap: $217 billion
- 2023 Revenue: $15.8 billion
- Forward Revenue Growth: 0.4%
- Dividend yield: 3.5%
- P/E Ratio: 14
- Stock Price: $105
Novartis is based in Switzerland and one of the biggest pharmaceutical companies in the world, ranking up there with Johnson & Johnson and Pfizer in terms of market cap. It develops a range of its own treatments for cancer, epilepsy, and kidney disease, among many others.
It makes this list, like J&J, thanks to its strong track record of reliable returns. It has increased its dividend for 24 years in a row and has been steadily increasing its share price since a major company restructure in 2015.
As with both J&J and Pfizer, Novartis is an ideal investment for anyone looking for slow and steady, reliable growth. It might even be undervalued compared to those two giants, so it represents an attractive opportunity to value investors looking for stocks trading below their market value.
Where to buy the best pharmaceutical shares
Copy link to sectionTo get any shares, you need a reliable stockbroker. These are some of the best stock platforms around, all of which offer top-of-the-range features and are ideal for if you can want to get started in the markets quickly.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Plus500
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.
What is a pharmaceutical stock?
Copy link to sectionAny company that develops, manufactures, or distributes products like drugs and vaccines. One of the defining features of pharmaceutical companies is how much they spend on research and development to discover new treatments. They also tend to be ‘defensive’ investments, because they can perform well in difficult economic environments.
Are pharmaceutical shares a good investment?
Copy link to sectionYes, if you’re looking for steady and reliable returns rather than big growth opportunities. Occasionally biotech companies like Moderna grow rapidly, but in general the industry is more slow and steady than ‘to the moon’.
The big advantage of pharma stocks is that they can perform well even when the economy is struggling. Owning shares that aren’t affected too much by recessions can be a great way of balancing your portfolio, reducing your risk, and generating reliable returns.
As with any investment, it’s important to follow what’s going on in the news that might affect the pharmaceutical industry. New treatments and drug trials, for example, can directly impact the stock price of all companies in the sector. You can use our news section below to stay up to date.
Methodology: How we choose the best pharmaceutical stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.
