3 Biotech Stocks That Look Like "Sure-Fire" Winners in 2026

The words “sure-fire” and biotechnology stocks rarely go together. This is a sector of the stock market that carries higher-than-average risk. The success of these companies depends on clinical trial results, regulatory decisions, and their ability to scale these drugs once they get approved. Even the best ideas can fail trials or face delays.

Despite the elevated risks, it just takes a single drug reaching FDA approval to generate significant returns for investors. Many of these names start as penny stocks, so betting on a winner is like buying a lucky lottery ticket—and this is what keeps investors looking for opportunities in the biotech space.

At first glance, the three names below may seem too conservative for growth-oriented investors. But for reasons that will become clear, there's reason to believe massive upside could lie ahead for each of these companies in 2026.

Eli Lilly: The Large-Cap Anchor With More Growth to Come

The first name on this list is Eli Lilly & Co. (NYSE: LLY). The company is the leader in the growing GLP-1 market, meaning it’s dominating two of the largest drug markets on earth: obesity and diabetes.

Zepbound and Mounjaro alone are enough to place Lilly on this list. The GLP-1 market is a case where demand continues to exceed supply. Plus, obesity drugs are long-term therapies, not one-time fads, which is likely to expand the company’s total addressable market (TAM). Simply put, if you want exposure to the biggest medical trend of the decade, it’s hard to argue against owning LLY stock.

But adding to the case for LLY stock are the firm's drug candidates for Alzheimer’s disease, oncology, and cardiovascular disease in late-stage trials.

LLY stock trades for over $1,000 a share as of Jan. 16, which may be too expensive for many investors.

However, even with a price-to-earnings (P/E) ratio around 50x, LLY has seen much higher valuations in recent years.

Analysts forecast earnings growth of more than 32% this year, which will likely support a significantly higher stock price in the future.

Viking Therapeutics: A Mid-Cap Stock That Could Be a Worthy Challenger

If LLY stock still feels too expensive, Viking Therapeutics Inc. (NASDAQ: VKTX) may be an alternative to consider. The company has both an oral and injectable GLP-1 drug in late-stage clinical trials. Early-stage trial results have shown eye-catching weight-loss results.

This is a case where two things can be true at the same time. On the one hand, there’s no company ready to dethrone Lilly. But this market is desperate for new GLP-1 drugs to offer competition to Lilly, and Viking could provide that competition. If its drug does make it through clinical trials, the firm could be a takeover target.

Analysts have a consensus price target of $87.14 on VKTX stock. That’s a whopping 155% increase from its closing price on Jan. 16.

That confidence is also backed by a high level of institutional ownership, exceeding 70%, signaling that the smart money is betting on Viking.

Biogen: May Be on the Brink of Breakthroughs for High-Impact Diseases

As significant as the GLP-1 market remains, many investors will want to target the next huge innovation. That could mean looking at candidates for treatment of Alzheimer’s/neurodegenerative diseases, for which there are currently limited options. In fact, few areas have a greater unmet medical need today.

Biogen Inc. (NASDAQ: BIIB) is one of the most direct ways to invest in these areas. The company has multiple neurodegenerative drugs in its pipeline. As mentioned in the introduction, if just one of these makes it through clinical trials, it could mean massive returns for investors.

BIIB stock is up about 16% in the last 12 months, but that’s primarily due to a 14% spike in the stock in the three months ending Jan. 16. However, analysts see further upside with a consensus price target of $190.50, a 15% gain.

Plus, at around 10x forward earnings, Biogen looks to be attractively valued for the coming year.

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