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U.S. Healthcare Sector Analysis

UpdatedAug 14, 2026
DataAggregated Company Financials
Companies1385
  • 7D2.3%
  • 3M16.4%
  • 1Y27.9%
  • YTD9.4%

Over the last 7 days, the Healthcare industry has risen 2.3%, driven by gains in Merck and Eli Lilly of 5.6% and 1.4%, respectively. This means that the industry has gained 28% over the past year. Earnings are forecast to grow by 20% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 14 Aug 2026US$7.1tUS$3.4tUS$116.0b25.9x61.6x2.1x
Sun, 12 Jul 2026US$6.9tUS$3.3tUS$122.0b25x56.6x2.1x
Tue, 09 Jun 2026US$6.4tUS$3.3tUS$122.7b22.9x52.4x1.9x
Thu, 07 May 2026US$6.2tUS$3.3tUS$119.2b23.4x52.1x1.9x
Sat, 04 Apr 2026US$6.2tUS$3.3tUS$128.2b22.5x48.3x1.9x
Mon, 02 Mar 2026US$6.7tUS$3.3tUS$127.6b25.5x52.2x2x
Wed, 28 Jan 2026US$6.6tUS$3.2tUS$130.7b28x50.9x2.1x
Fri, 26 Dec 2025US$6.6tUS$3.2tUS$135.2b26.4x48.5x2.1x
Sun, 23 Nov 2025US$6.3tUS$3.2tUS$133.7b25.8x47.5x2x
Tue, 21 Oct 2025US$6.0tUS$3.1tUS$140.2b25.5x43.1x2x
Thu, 18 Sep 2025US$5.7tUS$3.1tUS$137.5b23.7x41.3x1.8x
Sat, 16 Aug 2025US$5.6tUS$3.1tUS$137.1b23.1x40.6x1.8x
Mon, 14 Jul 2025US$5.5tUS$3.0tUS$127.9b24x43.3x1.8x
Wed, 11 Jun 2025US$5.5tUS$3.0tUS$127.2b24.1x43.2x1.8x
Fri, 09 May 2025US$5.5tUS$3.0tUS$128.7b24.5x42.5x1.8x
Sun, 06 Apr 2025US$5.2tUS$2.6tUS$82.2b24.7x63.5x2x
Tue, 04 Mar 2025US$5.9tUS$2.6tUS$79.5b27.7x73.8x2.2x
Thu, 30 Jan 2025US$6.1tUS$2.9tUS$84.4b27.8x72.7x2.1x
Sat, 28 Dec 2024US$5.9tUS$2.9tUS$78.3b26.8x74.9x2x
Mon, 25 Nov 2024US$6.0tUS$2.9tUS$77.3b28.2x78.1x2.1x
Wed, 23 Oct 2024US$6.2tUS$2.8tUS$58.4b31.9x105.6x2.2x
Fri, 20 Sep 2024US$6.3tUS$2.8tUS$60.1b30.6x104.5x2.2x
Sun, 18 Aug 2024US$6.2tUS$2.8tUS$56.0b32.8x109.8x2.2x
Tue, 16 Jul 2024US$6.3tUS$2.8tUS$62.2b31.2x101.7x2.2x
Thu, 13 Jun 2024US$6.2tUS$2.8tUS$62.4b29.7x99.6x2.2x
Sat, 11 May 2024US$6.1tUS$2.8tUS$63.9b30.7x95.8x2.2x
Mon, 08 Apr 2024US$6.2tUS$2.8tUS$84.1b32.4x73.2x2.2x
Wed, 06 Mar 2024US$6.3tUS$2.8tUS$85.0b31.4x74x2.3x
Fri, 02 Feb 2024US$6.4tUS$2.8tUS$78.3b32.3x82.3x2.3x
Sun, 31 Dec 2023US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Tue, 28 Nov 2023US$5.9tUS$2.8tUS$91.4b28x64.4x2.1x
Thu, 26 Oct 2023US$5.7tUS$2.8tUS$98.9b24.6x57.4x2x
Sat, 23 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Mon, 21 Aug 2023US$6.1tUS$2.8tUS$99.2b28x61.4x2.2x
Price to Earnings Ratio

61.4x


Total Market Cap: US$6.1tTotal Earnings: US$99.2bTotal 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 61.6x 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 5.3% 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 Market1.74%
Healthcare2.29%
Healthtech13.54%
Medical Equipment3.76%
Life Sciences3.40%
Biotech2.52%
Pharma1.83%
Healthcare Services0.15%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 55.7x.
    • 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 27% over the next 5 years.
  • However this is lower than its past earnings growth rate of 68% 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
MRK MerckUS$135.555.6%
+US$17.4b		63.8%PE105.4x
LLY Eli LillyUS$1.21k1.4%
+US$15.2b		76.6%PE40.3x
JNJ Johnson & JohnsonUS$262.082.0%
+US$12.3b		50.0%PE30x
ABBV AbbVieUS$250.822.8%
+US$12.3b		22.5%PE70.7x
ISRG Intuitive SurgicalUS$401.277.4%
+US$9.7b		-15.9%PE45.2x

Latest News

NTRA
US$310.78
Natera
7D
17.1%
1Y
96.2%
AMGN
US$417.84
Amgen
7D
3.2%
1Y
43.9%
LLY
US$1,209.00
Eli Lilly
7D
1.4%
1Y
76.6%
UNH
US$399.06
UnitedHealth Group
7D
-1.2%
1Y
47.0%
IDXX
US$566.93
IDEXX Laboratories
7D
-3.9%
1Y
-13.3%
CAH
US$231.24
Cardinal Health
7D
-2.7%
1Y
53.9%
Narrative Update • Aug 12

CAH: Generic Conversion Strength Will Support Earnings Execution Into FY27

The analyst price target for Cardinal Health has moved from about $250.53 to about $264.73, with analysts pointing to recent target raises across the Street that reference strong execution, updated estimates into FY27, and support from generic conversion activity and brand-to-generic trends. Analyst Commentary Recent research on Cardinal Health centers on higher price targets, updated earnings forecasts into FY27, and the impact of brand to generic trends.
ISRG
US$401.27
Intuitive Surgical
7D
7.4%
1Y
-15.9%
SION
US$6.54
Sionna Therapeutics
7D
-86.8%
1Y
-68.7%
Seeking Alpha • Aug 12

Sionna's SION-719 Failure Changes Everything (Rating Downgrade)

Summary Sionna Therapeutics is downgraded to Hold after SION-719’s Phase 2a failure, shifting focus to the riskier SION-451 program. SION-719’s lack of efficacy as a Trikafta add-on raises concerns about the NBD1 stabilisation approach’s clinical translation and increases execution risk. SION maintains a strong cash position with $268 million, trading at negative enterprise value, but faces a capital preservation imperative and uncertain pipeline value. Investor attention now centers on whether SION-451 + 2222 can demonstrate efficacy, with management pausing Phase II plans pending a full post-mortem on 719’s failure. Read the full article on Seeking Alpha
MRK
US$135.55
Merck
7D
5.6%
1Y
63.8%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
GILD
US$138.14
Gilead Sciences
7D
5.6%
1Y
16.1%
UTHR
US$501.27
United Therapeutics
7D
-7.0%
1Y
60.1%
Narrative Update • Aug 11

UTHR: Transplant Platform And Organ Manufacturing Advances Will Drive Future Stock Upside

Analysts have trimmed the United Therapeutics price target slightly, with the fair value estimate moving from about $750 to $725 as they factor in a modestly higher discount rate, updated revenue and margin assumptions, and recent mixed signals from Street research on product growth, legal outcomes, and regulatory developments. Analyst Commentary Recent commentary on United Therapeutics shows a mix of caution and optimism, with several bullish analysts still seeing room for upside despite near term uncertainties around guidance, legal outcomes, and competition.
CVS
US$94.99
CVS Health
7D
-1.3%
1Y
42.3%
Seeking Alpha • Aug 10

CVS Health: I Wanted A Beat And Raise, I Got It, And I'm Still At 'Hold'

Summary CVS Health Corporation's strong Q2 results delivered revenue and earnings beats while management raised operating cash flow guidance to $11.5 billion. Aetna turnaround and improved medical benefit ratios boosted first half cash generation, helping drive recent stock gains. Management anticipates higher second half medical costs alongside 2027 headwinds from 340B pricing and pharmacy drug mix shifts. Strengthening cash flow supports deleveraging and dividend safety, but the recent CVS stock rally keeps the thesis at Hold. Read the full article on Seeking Alpha
JNJ
US$262.08
Johnson & Johnson
7D
2.0%
1Y
50.0%
COR
US$310.01
Cencora
7D
-4.6%
1Y
5.1%
MCK
US$856.69
McKesson
7D
-1.7%
1Y
27.1%
Seeking Alpha • Aug 08

McKesson: Solid Q1 Earnings And Management Execution (Rating Upgrade)

Summary McKesson delivered strong Q1 results, with EPS up 20% and revenues rising 7.7% while modestly raising FY27 EPS guidance. I see GLP-1-driven momentum decelerating alongside a broader dip in the company's top-line growth profile. The Wellverse spin-off and prior divestitures are streamlining MCK, potentially justifying a premium multiple versus peers. While the valuation isn't overly attractive, management is executing well, and I'm upgrading shares to a hold rating today. Read the full article on Seeking Alpha
ABBV
US$250.82
AbbVie
7D
2.8%
1Y
22.5%
Narrative Update • Aug 07

ABBV: Future Returns Will Hinge On Apogee Respiratory Bet

Analysts have nudged their fair value estimate for AbbVie higher to about $273 per share. This reflects refreshed models that factor in Q2 updates, stronger confidence in long term margins, and the potential impact of the Apogee acquisition, while still using a slightly higher discount rate and a modestly lower future P/E assumption.