Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedSep 21, 2026
DataAggregated Company Financials
Companies1375
  • 7D0.6%
  • 3M10.2%
  • 1Y23.4%
  • YTD8.6%

Over the last 7 days, the Healthcare industry has remained flat, although notably Thermo Fisher Scientific gained 6.2%. The past year has been better, since the industry has gained 23% in that time. Looking forward, earnings are forecast to grow by 21% annually.

Sector Valuation and Performance

Has the U.S. Healthcare Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 22 Sep 2026US$7.1tUS$3.4tUS$118.6b25.1x59.6x2.1x
Thu, 20 Aug 2026US$7.2tUS$3.4tUS$115.6b27.2x62.1x2.1x
Sat, 18 Jul 2026US$6.9tUS$3.3tUS$123.3b25.3x55.8x2.1x
Mon, 15 Jun 2026US$6.5tUS$3.3tUS$122.1b23.4x53.2x1.9x
Wed, 13 May 2026US$6.1tUS$3.3tUS$123.6b23.2x49.8x1.8x
Fri, 10 Apr 2026US$6.3tUS$3.3tUS$127.2b23x49.5x1.9x
Sun, 08 Mar 2026US$6.4tUS$3.3tUS$125.5b24.9x50.6x1.9x
Tue, 03 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Thu, 01 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x48.1x2x
Sat, 29 Nov 2025US$6.6tUS$3.2tUS$133.5b26.5x49.1x2.1x
Mon, 27 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.3x2x
Wed, 24 Sep 2025US$5.7tUS$3.1tUS$137.6b23.8x41.5x1.8x
Fri, 22 Aug 2025US$5.7tUS$3.1tUS$137.2b23.3x41.4x1.8x
Sun, 20 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Tue, 17 Jun 2025US$5.5tUS$3.0tUS$127.4b23.6x43.5x1.8x
Thu, 15 May 2025US$5.4tUS$3.0tUS$125.9b23.5x42.5x1.8x
Sat, 12 Apr 2025US$5.2tUS$2.6tUS$81.8b24.9x63.8x2x
Mon, 10 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.7x2.2x
Wed, 05 Feb 2025US$6.1tUS$3.0tUS$93.6b27.6x65.4x2.1x
Fri, 03 Jan 2025US$5.8tUS$2.9tUS$79.4b27.2x72.6x2x
Sun, 01 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Tue, 29 Oct 2024US$6.0tUS$2.8tUS$59.1b29.2x102.2x2.1x
Thu, 26 Sep 2024US$6.3tUS$2.8tUS$60.1b29.2x104x2.2x
Sat, 24 Aug 2024US$6.2tUS$2.8tUS$56.4b31.6x110.4x2.2x
Mon, 22 Jul 2024US$6.3tUS$2.8tUS$60.7b31.7x103.5x2.2x
Wed, 19 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.6x2.2x
Fri, 17 May 2024US$6.2tUS$2.8tUS$64.2b30.4x97.1x2.2x
Sun, 14 Apr 2024US$6.1tUS$2.8tUS$85.3b31.4x71.2x2.2x
Tue, 12 Mar 2024US$6.3tUS$2.8tUS$85.3b32.2x73.6x2.3x
Thu, 08 Feb 2024US$6.2tUS$2.8tUS$76.8b30.8x80.1x2.2x
Sat, 06 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Mon, 04 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x65x2.1x
Wed, 01 Nov 2023US$5.6tUS$2.8tUS$99.1b24.2x56.5x2x
Fri, 29 Sep 2023US$5.9tUS$2.8tUS$98.6b27.5x59.8x2.1x
Price to Earnings Ratio

59.8x


Total Market Cap: US$5.9tTotal Earnings: US$98.6bTotal Revenue: US$2.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
Current Industry PE
  • Investors are pessimistic on the American Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 59.6x which is lower than its 3-year average PE of 65.5x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 6.4% per year over the last three years.
  • Revenues for these companies have grown 6.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-0.10%
Healthcare0.61%
Life Sciences5.82%
Pharma0.88%
Medical Equipment0.43%
Biotech0.32%
Healthtech-0.14%
Healthcare Services-2.99%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.2x.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 17% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
TMO Thermo Fisher ScientificUS$651.456.2%
+US$14.0b		37.2%PE34.6x
LLY Eli LillyUS$1.15k1.3%
+US$13.1b		52.7%PE38.5x
JNJ Johnson & JohnsonUS$269.991.4%
+US$8.8b		55.0%PE30.9x
DHR DanaherUS$211.814.2%
+US$6.0b		11.2%PE37.3x
ISRG Intuitive SurgicalUS$393.334.1%
+US$5.4b		-11.5%PE44.3x

Latest News

JNJ
US$269.99
Johnson & Johnson
7D
1.4%
1Y
55.0%
MRK
US$146.87
Merck
7D
1.4%
1Y
82.7%
ILMN
US$239.62
Illumina
7D
15.1%
1Y
136.1%
CVS
US$88.84
CVS Health
7D
-7.0%
1Y
18.2%
New Narrative • Sep 19

Aetna’s Margin Recovery Is Real — and the Market Is Still Pricing the Old Insurance Scare

CVS Health is no longer the broken-Aetna-plus-drugstore story the market used for most of 2024–25. Through the first half of 2026 the company has raised full-year guidance twice, Aetna’s medical benefit ratio has improved, cash flow is running well ahead of plan, and all three operating segments are growing.
LLY
US$1,152.93
Eli Lilly
7D
1.3%
1Y
52.7%
Narrative Update • Sep 19

LLY: GLP-1 And Obesity Franchise Strength Will Drive Future Upside

Analysts have nudged their average price target for Eli Lilly higher as updated models reflect stronger GLP-1 prescription trends, increased demand in the obesity franchise, and recent price target increases that now cluster around the $1,300 to $1,600 range. Analyst Commentary Recent research updates on Eli Lilly show a wide range of views, but most price targets sit well above the US$900 level, with several clustered between US$1,300 and US$1,600.
DHR
US$211.81
Danaher
7D
4.2%
1Y
11.2%
RVMD
US$190.95
Revolution Medicines
7D
-6.9%
1Y
330.0%
Narrative Update • Sep 18

RVMD: Pancreatic Cancer Approval And Frontline RAS Expansion Will Drive Upside

The analyst price target for Revolution Medicines has increased from $221.90 to $251.21. This change reflects updated views on RAS-targeted oncology opportunities, product pricing, and pipeline potential across daraxonrasib, zoldonrasib, and elironrasib.
TMO
US$651.45
Thermo Fisher Scientific
7D
6.2%
1Y
37.2%
Narrative Update • Sep 17

TMO: AI And Biopharma Tailwinds Support Fairly Valued Margin Upside Risk

Analysts have nudged the fair value estimate for Thermo Fisher Scientific higher from $631.42 to $645.15, reflecting updated assumptions around slightly higher margins, a modestly higher future P/E, and continued support from recent upgrades and price target increases across the Street. Analyst Commentary Recent Street research on Thermo Fisher Scientific points to a generally constructive view on the stock, with several firms raising price targets and a few initiating or resuming coverage.
UNH
US$376.90
UnitedHealth Group
7D
-1.7%
1Y
10.4%
GILD
US$150.11
Gilead Sciences
7D
2.5%
1Y
33.4%
ISRG
US$393.33
Intuitive Surgical
7D
4.1%
1Y
-11.5%
Seeking Alpha • Sep 15

Intuitive Surgical: My Sell Case Is Losing Ground (Rating Upgrade)

Summary Intuitive Surgical remains a compelling long-term investment, though current valuation still demands strong execution. ISRG's Q2 saw revenue growth moderate to 18.5%, but operating income surged 30.7%, and margins expanded, even after adjusting for tariff refunds. Recurring revenue from instruments, services, and leases drove 86% of incremental sales, while system adoption and installed base growth support future procedures. I move to Hold as lower multiples and resilient earnings offer a better risk-return balance, but procedure growth and demand require close monitoring. Read the full article on Seeking Alpha
VRTX
US$508.34
Vertex Pharmaceuticals
7D
-2.2%
1Y
32.7%
CI
US$275.28
Cigna Group
7D
-5.1%
1Y
-4.6%
COR
US$308.78
Cencora
7D
-5.3%
1Y
6.9%
MCK
US$874.65
McKesson
7D
-4.0%
1Y
25.5%
ELV
US$410.95
Elevance Health
7D
-3.1%
1Y
29.3%