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U.S. Healthcare Sector Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies1403
  • 7D0.3%
  • 3M-2.0%
  • 1Y16.5%
  • YTD-2.6%

Over the last 7 days, the Healthcare industry has remained flat, although notably Thermo Fisher Scientific gained 10%. As for the the longer term, the industry is up 16% 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
Tue, 02 Jun 2026US$6.4tUS$3.3tUS$122.4b23.2x52.2x1.9x
Thu, 30 Apr 2026US$6.1tUS$3.3tUS$122.0b22.9x50x1.9x
Sat, 28 Mar 2026US$6.1tUS$3.3tUS$126.0b21.7x48.5x1.9x
Mon, 23 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.1x2x
Wed, 21 Jan 2026US$6.5tUS$3.2tUS$136.3b27.8x48x2x
Fri, 19 Dec 2025US$6.4tUS$3.2tUS$135.2b26.6x47.6x2x
Sun, 16 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Tue, 14 Oct 2025US$5.9tUS$3.1tUS$137.9b24.1x42.9x1.9x
Thu, 11 Sep 2025US$5.8tUS$3.1tUS$137.7b22.7x41.9x1.9x
Sat, 09 Aug 2025US$5.3tUS$3.1tUS$138.6b22.9x38.5x1.7x
Mon, 07 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Wed, 04 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.5x1.8x
Fri, 02 May 2025US$5.5tUS$2.7tUS$117.5b25.2x46.7x2.1x
Sun, 30 Mar 2025US$5.6tUS$2.6tUS$81.6b26.4x69.1x2.1x
Tue, 25 Feb 2025US$5.8tUS$2.6tUS$80.7b26.5x72.1x2.2x
Thu, 23 Jan 2025US$6.0tUS$2.9tUS$78.9b28.2x75.6x2x
Sat, 21 Dec 2024US$5.7tUS$2.9tUS$78.2b27.1x72.7x1.9x
Mon, 18 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Wed, 16 Oct 2024US$6.2tUS$2.8tUS$59.2b30x104.9x2.2x
Fri, 13 Sep 2024US$6.3tUS$2.8tUS$60.3b30.2x103.8x2.2x
Sun, 11 Aug 2024US$6.0tUS$2.8tUS$55.3b30.4x108.9x2.1x
Tue, 09 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Thu, 06 Jun 2024US$6.2tUS$2.8tUS$64.1b30.6x96x2.2x
Sat, 04 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.3x2.1x
Mon, 01 Apr 2024US$6.4tUS$2.8tUS$84.0b33.4x75.7x2.3x
Wed, 28 Feb 2024US$6.3tUS$2.8tUS$85.8b31x73.5x2.3x
Fri, 26 Jan 2024US$6.3tUS$2.8tUS$90.9b32x69.3x2.2x
Sun, 24 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x67.4x2.2x
Tue, 21 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Thu, 19 Oct 2023US$5.8tUS$2.8tUS$99.8b26x58.5x2.1x
Sat, 16 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Mon, 14 Aug 2023US$6.2tUS$2.8tUS$99.1b28.5x62.5x2.2x
Wed, 12 Jul 2023US$5.9tUS$2.7tUS$110.3b26.3x53.6x2.2x
Fri, 09 Jun 2023US$6.0tUS$2.7tUS$110.4b25.5x53.9x2.2x
Price to Earnings Ratio

53.9x


Total Market Cap: US$6.0tTotal Earnings: US$110.4bTotal 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 52.2x 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 3.5% per year over the last three years.
  • Revenues for these companies have grown 6.9% 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 Market1.58%
Healthcare0.32%
Life Sciences9.39%
Healthtech7.85%
Biotech1.16%
Pharma0.13%
Healthcare Services-1.32%
Medical Equipment-3.49%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.4x.
    • Analysts are expecting annual earnings growth of 17.9%, which is higher than its past year's earnings growth of 5.2% 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 55% 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
TMO Thermo Fisher ScientificUS$494.0410.2%
+US$17.0b		24.6%PE26.8x
LLY Eli LillyUS$1.08k1.6%
+US$15.3b		44.8%PE38.2x
A Agilent TechnologiesUS$135.9818.3%
+US$5.9b		22.4%PE27.1x
DHR DanaherUS$179.874.6%
+US$5.6b		-4.9%PE34.6x
VEEV Veeva SystemsUS$188.6617.8%
+US$4.6b		-32.3%PE33.9x

Latest News

LLY
US$1,082.20
Eli Lilly
7D
1.6%
1Y
44.8%
JNJ
US$223.51
Johnson & Johnson
7D
-4.6%
1Y
43.8%
BMY
US$54.95
Bristol-Myers Squibb
7D
-7.6%
1Y
12.6%
DHR
US$179.87
Danaher
7D
4.6%
1Y
-4.9%
WAT
US$378.16
Waters
7D
10.5%
1Y
10.0%
VEEV
US$188.66
Veeva Systems
7D
17.8%
1Y
-32.3%
Narrative Update • Jun 01

VEEV: AI Moat And CRM Commitments Will Support Future Multiple Reacceleration

Narrative Update The analyst price target for Veeva Systems has been trimmed by about $2 to $262.68 as analysts factor in compressed software multiples, while largely maintaining their underlying growth, margin, and P/E assumptions. Analyst Commentary Recent research on Veeva Systems clusters around strong reported execution in Q4, tempered by valuation resets tied to compressed software multiples and longer term questions around AI and CRM competition.
BSX
US$47.98
Boston Scientific
7D
-17.0%
1Y
-53.9%
ILMN
US$164.40
Illumina
7D
13.8%
1Y
102.7%
Narrative Update • Jun 01

ILMN: Clinical Momentum And Softer Competition Will Shape A Balanced Outlook

Analysts have lifted the fair value estimate for Illumina from $156.51 to $175.00, citing Street research that points to building clinical momentum, easing competitive concerns, and a series of higher price targets from several firms. Analyst Commentary Recent Street research on Illumina has tilted more constructive, with several bullish analysts pointing to improving clinical traction and a less intense competitive backdrop as key supports for the stock.
IQV
US$186.82
IQVIA Holdings
7D
11.3%
1Y
34.3%
Narrative Update • May 31

IQV: Future Returns Will Depend On AI Trial Expansion And Execution Risk Balancing

Narrative Update on IQVIA Holdings The analyst price target for IQVIA Holdings has moved from $186.12 to $195.00, reflecting updated assumptions on discount rate, profit margin, and P/E, alongside recent research in which several firms reiterated constructive views on clinical trial activity, AI related cost savings, and the stock's valuation. Analyst Commentary Recent Street research on IQVIA Holdings has been mixed, with some bullish rating changes and initiations sitting alongside lower price targets from more cautious voices.
SYK
US$299.46
Stryker
7D
-5.4%
1Y
-21.4%
Narrative Update • May 31

SYK: Hospital Digitization And Cyber Resilience Will Drive 2026 Rebound Potential

Analysts have trimmed Stryker's updated price target slightly, reflecting a minor change of about $0.11 and combining a series of recent target cuts from multiple firms with one modest increase, as they reassess assumptions around discount rate, revenue growth, profit margin, and future P/E. Analyst Commentary Bullish Takeaways Bullish analysts who recently raised or affirmed higher targets highlight what they see as healthy fundamentals in U.S. medical technology, which they argue can support Stryker's growth assumptions that underpin current P/E expectations.
TMO
US$494.04
Thermo Fisher Scientific
7D
10.2%
1Y
24.6%
MRK
US$115.17
Merck
7D
-5.9%
1Y
51.0%
ISRG
US$412.26
Intuitive Surgical
7D
-5.9%
1Y
-25.5%
A
US$135.98
Agilent Technologies
7D
18.3%
1Y
22.4%
UNH
US$379.86
UnitedHealth Group
7D
-2.2%
1Y
24.7%
MDT
US$73.98
Medtronic
7D
-5.9%
1Y
-11.7%