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U.S. Healthcare Sector Analysis

UpdatedJul 24, 2026
DataAggregated Company Financials
Companies1398
  • 7D0.04%
  • 3M11.3%
  • 1Y20.3%
  • YTD4.7%

The Healthcare is pretty flat in the last 7 days, but Johnson & Johnson has stood out, gaining 3.7%. As for the the longer term, the industry is up 20% over the past 12 months. 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
Fri, 24 Jul 2026US$6.8tUS$3.3tUS$123.6b25.5x54.8x2x
Sun, 21 Jun 2026US$6.4tUS$3.3tUS$121.7b23.3x52.2x1.9x
Tue, 19 May 2026US$6.2tUS$3.3tUS$122.6b22.9x50.4x1.9x
Thu, 16 Apr 2026US$6.3tUS$3.3tUS$121.4b23.7x52x1.9x
Sat, 14 Mar 2026US$6.2tUS$3.3tUS$124.5b24.3x50x1.9x
Mon, 09 Feb 2026US$6.6tUS$3.3tUS$125.4b27.1x52.4x2x
Wed, 07 Jan 2026US$6.5tUS$3.2tUS$135.6b26.3x47.8x2x
Fri, 05 Dec 2025US$6.4tUS$3.2tUS$133.6b26x48.2x2x
Sun, 02 Nov 2025US$6.0tUS$3.1tUS$134.4b26.1x44.4x1.9x
Tue, 30 Sep 2025US$5.7tUS$3.1tUS$137.6b23.4x41.1x1.8x
Thu, 28 Aug 2025US$5.7tUS$3.1tUS$137.2b23.4x41.5x1.8x
Sat, 26 Jul 2025US$5.6tUS$3.0tUS$129.3b24.6x43.1x1.8x
Mon, 23 Jun 2025US$5.4tUS$3.0tUS$127.5b24x42.5x1.8x
Wed, 21 May 2025US$5.5tUS$3.0tUS$126.1b24x43.2x1.8x
Fri, 18 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.3x2x
Sun, 16 Mar 2025US$5.7tUS$2.6tUS$74.8b26.6x75.6x2.1x
Tue, 11 Feb 2025US$5.9tUS$2.6tUS$84.4b26.4x69.6x2.2x
Thu, 09 Jan 2025US$5.9tUS$2.9tUS$79.4b27.3x73.7x2x
Sat, 07 Dec 2024US$6.1tUS$2.9tUS$77.6b28.7x78.3x2.1x
Mon, 04 Nov 2024US$6.2tUS$2.9tUS$71.3b28.4x86.4x2.1x
Wed, 02 Oct 2024US$6.2tUS$2.8tUS$60.0b30.1x104x2.2x
Fri, 30 Aug 2024US$6.3tUS$2.8tUS$54.0b32.1x116.1x2.2x
Sun, 28 Jul 2024US$6.4tUS$2.8tUS$60.8b31.6x105x2.2x
Tue, 25 Jun 2024US$6.2tUS$2.8tUS$62.5b30.1x99.2x2.2x
Thu, 23 May 2024US$6.2tUS$2.8tUS$64.3b30.2x96.8x2.2x
Sat, 20 Apr 2024US$5.9tUS$2.8tUS$84.4b30x70.2x2.1x
Mon, 18 Mar 2024US$6.2tUS$2.8tUS$84.5b31.5x73.7x2.2x
Wed, 14 Feb 2024US$6.1tUS$2.8tUS$82.0b30.7x74.7x2.2x
Fri, 12 Jan 2024US$6.4tUS$2.8tUS$90.1b32x71.1x2.3x
Sun, 10 Dec 2023US$6.0tUS$2.8tUS$91.4b29.4x65.2x2.1x
Tue, 07 Nov 2023US$5.7tUS$2.8tUS$86.7b26.2x66.3x2x
Thu, 05 Oct 2023US$5.8tUS$2.8tUS$98.3b26.7x59.2x2.1x
Sat, 02 Sep 2023US$6.1tUS$2.8tUS$98.7b27.4x61.9x2.2x
Mon, 31 Jul 2023US$6.1tUS$2.7tUS$115.6b28x52.9x2.2x
Price to Earnings Ratio

52.9x


Total Market Cap: US$6.1tTotal Earnings: US$115.6bTotal Revenue: US$2.7tTotal 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 54.8x 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 2.3% per year over the last three years.
  • Revenues for these companies have grown 6.6% 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-1.98%
Healthcare0.044%
Pharma1.90%
Life Sciences0.59%
Healthcare Services-0.11%
Biotech-0.53%
Medical Equipment-3.14%
Healthtech-7.98%
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 17.1%, 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 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 59% 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
JNJ Johnson & JohnsonUS$259.273.7%
+US$22.4b		52.9%PE29.7x
LLY Eli LillyUS$1.19k1.4%
+US$14.9b		47.2%PE41.8x
TMO Thermo Fisher ScientificUS$572.325.4%
+US$10.8b		20.5%PE31.1x
MRK MerckUS$130.482.2%
+US$7.0b		55.1%PE36.1x
ABBV AbbVieUS$256.921.0%
+US$4.5b		34.6%PE126.3x

Latest News

DXCM
US$70.48
DexCom
7D
-9.6%
1Y
-18.7%
ABBV
US$256.92
AbbVie
7D
1.0%
1Y
34.6%
Seeking Alpha • 19h

AbbVie: Bright Future, But Already Priced In

Summary AbbVie Inc. remains rated 'Hold' as the stock appears slightly overvalued, with high debt levels tempering further upside. Q1/26 results showed 12.4% revenue growth and 155% free cash flow growth, but GAAP EPS declined 45.8% while adjusted EPS rose 7.7%. ABBV's growth is driven by Skyrizi and Rinvoq (44% of revenue), with Neuroscience and the Apogee Therapeutics acquisition adding pipeline diversification. High leverage from acquisitions may constrain capital allocation, while ABBV's dependency on two drugs and elevated valuation limit near-term attractiveness. Read the full article on Seeking Alpha
JNJ
US$259.27
Johnson & Johnson
7D
3.7%
1Y
52.9%
TMO
US$572.32
Thermo Fisher Scientific
7D
5.4%
1Y
20.5%
ARWR
US$86.78
Arrowhead Pharmaceuticals
7D
21.6%
1Y
433.7%
DHR
US$192.50
Danaher
7D
-6.1%
1Y
-5.1%
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.
GILD
US$130.86
Gilead Sciences
7D
-4.0%
1Y
15.6%
LLY
US$1,185.87
Eli Lilly
7D
1.4%
1Y
47.2%
MRK
US$130.48
Merck
7D
2.2%
1Y
55.1%
REGN
US$651.91
Regeneron Pharmaceuticals
7D
-4.0%
1Y
15.5%
ISRG
US$332.02
Intuitive Surgical
7D
-3.9%
1Y
-33.0%
Narrative Update • Jul 21

ISRG: Future Returns Will Rely On Procedure Utilization Outpacing Medtech Sector Rotation

Intuitive Surgical's updated analyst price target reflects a reset from $565.25 to $501.73, as analysts factor in slightly softer procedure growth expectations, modestly adjusted revenue growth assumptions, and a lower applied future P/E multiple despite stable to slightly higher modeled profit margins. Analyst Commentary Recent Street research on Intuitive Surgical points to a reset in expectations rather than a collapse in confidence.
AMGN
US$371.50
Amgen
7D
1.4%
1Y
21.2%
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.
ABT
US$100.75
Abbott Laboratories
7D
1.9%
1Y
-19.8%
SYK
US$318.97
Stryker
7D
-3.7%
1Y
-19.6%
VRTX
US$473.09
Vertex Pharmaceuticals
7D
-2.7%
1Y
0.2%
VEEV
US$179.58
Veeva Systems
7D
-9.0%
1Y
-38.3%
Narrative Update • Jul 13

VEEV: AI Disruption Fears Will Pressure Core CRM Durability

Veeva Systems' updated analyst price target has been reduced from about $232.80 to $165.00. Analysts cite slightly lower modeled revenue growth, a lower assumed future P/E multiple, and ongoing debates around AI disruption and competitive pressure in core CRM offerings, despite steady Q1 execution and continued AI product development.