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U.S. Healthcare Sector Analysis

UpdatedJul 29, 2026
DataAggregated Company Financials
Companies1397
  • 7D3.3%
  • 3M16.2%
  • 1Y25.7%
  • YTD7.6%

Eli Lilly is up 3.8%, leading the way for the Healthcare industry, which has gained 3.3%. This means that the industry has gained 26% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 29 Jul 2026US$6.9tUS$3.3tUS$126.2b27.2x54.9x2.1x
Fri, 26 Jun 2026US$6.6tUS$3.3tUS$121.7b24.3x53.9x2x
Sun, 24 May 2026US$6.4tUS$3.3tUS$122.9b23.4x51.9x1.9x
Tue, 21 Apr 2026US$6.4tUS$3.3tUS$121.1b24.3x52.4x1.9x
Thu, 19 Mar 2026US$6.2tUS$3.3tUS$124.4b23x50.1x1.9x
Sat, 14 Feb 2026US$6.5tUS$3.3tUS$126.4b26.8x51.4x2x
Mon, 12 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Wed, 10 Dec 2025US$6.2tUS$3.2tUS$133.9b25.5x46.7x2x
Fri, 07 Nov 2025US$6.0tUS$3.2tUS$131.7b24.3x45.6x1.9x
Sun, 05 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.8x2x
Tue, 02 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Thu, 31 Jul 2025US$5.5tUS$3.1tUS$126.6b24.1x43.5x1.8x
Sat, 28 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Mon, 26 May 2025US$5.3tUS$3.0tUS$126.9b22.6x41.7x1.7x
Wed, 23 Apr 2025US$5.2tUS$2.7tUS$97.7b24.5x53x2x
Fri, 21 Mar 2025US$5.7tUS$2.6tUS$81.5b26.8x70.3x2.2x
Sun, 16 Feb 2025US$5.8tUS$2.6tUS$82.1b26.8x70.8x2.2x
Tue, 14 Jan 2025US$5.8tUS$2.9tUS$78.9b28.2x74x2x
Thu, 12 Dec 2024US$6.0tUS$2.9tUS$77.5b28.1x78x2.1x
Sat, 09 Nov 2024US$6.2tUS$2.9tUS$75.9b28.3x82.1x2.1x
Mon, 07 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Wed, 04 Sep 2024US$6.3tUS$2.8tUS$60.4b31.1x104.9x2.2x
Fri, 02 Aug 2024US$6.4tUS$2.9tUS$68.5b32.9x92.7x2.2x
Sun, 30 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Tue, 28 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Thu, 25 Apr 2024US$6.0tUS$2.8tUS$84.1b31.3x71.8x2.2x
Sat, 23 Mar 2024US$6.2tUS$2.8tUS$82.1b31.8x75.9x2.2x
Mon, 19 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Wed, 17 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Fri, 15 Dec 2023US$6.1tUS$2.8tUS$91.5b32.5x67.1x2.2x
Sun, 12 Nov 2023US$5.7tUS$2.8tUS$91.0b26.5x62.1x2x
Tue, 10 Oct 2023US$5.9tUS$2.8tUS$98.3b26.1x59.9x2.1x
Thu, 07 Sep 2023US$6.0tUS$2.8tUS$98.6b27.5x61x2.2x
Sat, 05 Aug 2023US$6.1tUS$2.8tUS$100.7b28.8x60.6x2.2x
Price to Earnings Ratio

60.6x


Total Market Cap: US$6.1tTotal Earnings: US$100.7bTotal 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 54.9x 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 7.8% per year over the last three years.
  • Revenues for these companies have grown 6.2% 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-1.50%
Healthcare3.29%
Life Sciences7.59%
Medical Equipment5.32%
Healthtech4.56%
Pharma4.01%
Biotech0.88%
Healthcare Services0.17%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.9x.
    • Analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings growth of 12.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 64% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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
LLY Eli LillyUS$1.22k3.8%
+US$40.4b		60.0%PE43.1x
JNJ Johnson & JohnsonUS$266.736.4%
+US$39.5b		58.7%PE30.6x
TMO Thermo Fisher ScientificUS$576.4110.1%
+US$19.7b		19.5%PE30.7x
AMGN AmgenUS$393.107.3%
+US$14.5b		29.5%PE27.2x
DHR DanaherUS$199.0511.2%
+US$14.1b		-3.8%PE35.1x

Latest News

ABBV
US$263.20
AbbVie
7D
2.8%
1Y
37.6%
ABT
US$107.27
Abbott Laboratories
7D
7.6%
1Y
-16.2%
CNC
US$63.91
Centene
7D
-5.4%
1Y
150.3%
Seeking Alpha • 5h

Centene's Margin Recovery Keeps The Upside Alive

Summary Centene maintains a Buy rating, reflecting sustained margin improvement, cost control, and capital flexibility supporting a higher valuation multiple. CNC's Q2 adjusted EPS of $2.51 beat estimates by over $1, with operating cash flow up 141% year-over-year to $7.96 billion. Medicaid and Medicare segments show disciplined execution; CNC is prioritizing margin over volume, especially by exiting unprofitable Medicare Advantage plans. Key risks include government rate changes, medical cost inflation, and policy shifts; steady progress and cost discipline are essential for further upside. Read the full article on Seeking Alpha
JNJ
US$266.73
Johnson & Johnson
7D
6.4%
1Y
58.7%
ELV
US$385.73
Elevance Health
7D
-2.0%
1Y
33.6%
Narrative Update • Jul 28

ELV: Medicaid Discipline And Exits Will Set Up Future Margin Recovery

Elevance Health's updated analyst price target edges higher to $449 from $437, as analysts factor in firmer profit margin expectations, a slightly higher discount rate, and a modestly lower assumed future P/E multiple following recent Q2 results and commentary on Medicaid trends and investments. Analyst Commentary Recent research on Elevance Health reflects a mix of optimism and caution as investors weigh strong execution in some businesses against ongoing questions around Medicaid costs and valuation after the recent share pullback.
UNH
US$428.79
UnitedHealth Group
7D
-1.7%
1Y
64.2%
Narrative Update • Jul 28

UNH: Medicare Reset And AI Efficiency Gains Will Drive Multi Year Margin Recovery

UnitedHealth Group's updated analyst price target framework, which lifts fair value from $424.23 to $475.23, reflects analysts' refreshed models after a stronger Q2, improved visibility on Medicare and Optum Health margin recovery, as well as modestly higher assumptions for revenue growth, profit margins, and target P/E multiples. Analyst Commentary Recent research on UnitedHealth Group clusters around a more constructive view of the company following its Q2 update, while still flagging a few areas that could matter for valuation and execution.
WST
US$337.00
West Pharmaceutical Services
7D
-6.2%
1Y
33.2%
Narrative Update • Jul 28

WST: High Value Injectable Demand And GLP 1 Exposure Will Drive Future Returns

The updated analyst price target for West Pharmaceutical Services has moved higher from $379 to about $404. This reflects analysts’ revised models that incorporate slightly lower revenue growth assumptions, a modest improvement in profit margin expectations, and a somewhat higher future P/E multiple.
TMO
US$576.41
Thermo Fisher Scientific
7D
10.1%
1Y
19.5%
MRNA
US$55.81
Moderna
7D
-6.5%
1Y
70.9%
Narrative Update • Jul 27

MRNA: Flu Revenue Delays And Regulatory Timing Will Constrain Future Upside

Analysts have lifted their fair value estimate for Moderna stock from $22.00 to $25.00, reflecting updated assumptions around revenue growth, profitability, and future P/E multiples in light of a series of higher Street price targets and supportive commentary on the company's vaccine pipeline. Analyst Commentary Recent research coverage of Moderna shows a mix of optimism around the vaccine portfolio and caution around execution, timing of revenues, and valuation.
LLY
US$1,220.66
Eli Lilly
7D
3.8%
1Y
60.0%
Narrative Update • Jul 25

LLY: GLP-1 Leadership And Retatrutide Data Will Shape Balanced Outlook

Eli Lilly's updated fair value estimate of $1,270.37, up from $1,243.43, reflects analysts' higher price targets that lean on expectations for stronger obesity and diabetes franchise contributions, incremental support from retatrutide data, and Q2 previews that factor in relatively higher revenue growth assumptions alongside slightly adjusted long term profit margins and future P/E multiples. Analyst Commentary Recent research on Eli Lilly points to a generally constructive stance from Wall Street, with multiple firms lifting price targets as they reassess the company's obesity and diabetes portfolio, retatrutide data, and Q2 earnings setup.
MRK
US$131.82
Merck
7D
4.4%
1Y
59.5%
HUM
US$388.71
Humana
7D
-3.9%
1Y
67.1%
Narrative Update • Jul 23

HUM: Medicare Advantage Cost Trend Moderation Will Rebuild Margins And Earnings Power

The analyst price target for Humana has been revised higher from $441.00 to $502.00, supported by analysts citing moderating Medicare Advantage cost trends, improved confidence in margin recovery and earnings risk, and a willingness to apply a higher future P/E multiple to the stock. Analyst Commentary Recent research on Humana points to a clear shift toward more constructive sentiment, with a series of upward price target revisions and select rating upgrades highlighting improving confidence in Medicare Advantage trends, margin recovery potential, and earnings risk management.
DHR
US$199.05
Danaher
7D
11.2%
1Y
-3.8%
Narrative Update • Jul 23

DHR: Bioprocess Recovery And Diagnostics Expansion Will Support Premium Multiple

Danaher’s analyst price target is being reset modestly lower toward about $230, as analysts factor in recent bioprocessing misses, a higher assumed discount rate, and a lower future P/E multiple, even while keeping broadly constructive views on the core life sciences and diagnostics franchises. Analyst Commentary Recent Street research around Danaher highlights a mix of optimism about the long term potential of its life sciences and diagnostics businesses and concern about near term execution, particularly in bioprocessing.
NTRA
US$252.22
Natera
7D
-5.6%
1Y
85.7%
CVS
US$109.34
CVS Health
7D
-1.1%
1Y
82.2%
Narrative Update • Jul 22

CVS: GLP‑1 Expansion And Legal Settlements Will Shape Future Earnings Stability

The analyst price target for CVS Health has been lifted by about $4 to reflect modestly higher fair value estimates around $112. Analysts point to sector tailwinds in healthcare services, expectations for more stable managed care trends, and company-specific growth investments in areas such as GLP-1 support programs and technology.
AMGN
US$393.10
Amgen
7D
7.3%
1Y
29.5%
New Narrative • Jul 19

A transitional big-pharma giant holding a speculative premium driven by obesity hype, masking severe revenue erosion.

The "Amgen 2027 Bull Case" relies on a classic top-line fallacy: assuming that macro obesity market growth and FDA's CNPV (Commissioner’s National Priority Voucher) tailwinds will automatically trigger a re-rating. Here is the cold, data-driven reality: 1.