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U.S. Healthcare Sector Analysis

UpdatedNov 22, 2025
DataAggregated Company Financials
Companies1375
  • 7D1.8%
  • 3M11.8%
  • 1Y5.8%
  • YTD10.6%

Over the last 7 days, the Healthcare industry has risen 1.8%, driven by gains from Eli Lilly of 3.4%. During this same period, the Boston Scientific underperformed, falling 5.7%. This takes the industry's 12 month performance to a gain of 5.8%. Earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 19 Jul 2023US$6.0tUS$2.7tUS$110.9b26.3x54.1x2.2x
Fri, 16 Jun 2023US$6.0tUS$2.7tUS$110.1b26.4x54.1x2.2x
Sun, 14 May 2023US$6.0tUS$2.7tUS$114.7b24.7x52.3x2.2x
Tue, 11 Apr 2023US$5.9tUS$2.5tUS$124.4b24.7x47.6x2.4x
Thu, 09 Mar 2023US$5.7tUS$2.5tUS$122.5b24.6x46.2x2.3x
Sat, 04 Feb 2023US$6.0tUS$2.5tUS$133.7b23.9x44.9x2.4x
Mon, 02 Jan 2023US$6.0tUS$2.5tUS$135.6b23.1x44.4x2.5x
Wed, 30 Nov 2022US$6.0tUS$2.4tUS$133.6b23.7x44.7x2.5x
Price to Earnings Ratio

44.7x


Total Market Cap: US$6.0tTotal Earnings: US$133.6bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65x202320242025
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 46.7x which is lower than its 3-year average PE of 65.0x.
  • 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 remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 9.2% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

US Market-2.08%
Healthcare1.78%
Pharma3.06%
Life Sciences2.65%
Biotech1.60%
Medical Equipment0.89%
Healthcare Services0.81%
Healthtech-10.78%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 61.3x.
    • Analysts are expecting annual earnings growth of 17.6%, which is higher than its past year's earnings decline of 5.1% 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 52% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 13% 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$1.06k3.4%
+US$30.8b		41.7%PE51.5x
JNJ Johnson & JohnsonUS$203.904.1%
+US$19.2b		31.4%PE19.6x
MRK MerckUS$97.765.2%
+US$12.0b		-1.4%PE12.7x
ABBV AbbVieUS$236.281.7%
+US$6.9b		33.5%PE177.9x
MDT MedtronicUS$101.205.6%
+US$6.8b		17.4%PE27.2x

Latest News

MDT
US$101.20
Medtronic
7D
5.6%
1Y
17.4%
LLY
US$1,059.70
Eli Lilly
7D
3.4%
1Y
41.7%
MRK
US$97.76
Merck
7D
5.2%
1Y
-1.4%
VEEV
US$244.06
Veeva Systems
7D
-16.8%
1Y
12.7%
JNJ
US$203.90
Johnson & Johnson
7D
4.1%
1Y
31.4%

JNJ: Upcoming Business Reorganization and Legal Risks Will Influence Future Performance

Johnson & Johnson's analyst price target has increased slightly from $199.56 to $200.82, as analysts cite stronger-than-expected sector performance and a constructive long-term industry outlook, which support the adjustment. Analyst Commentary Recent analyst commentary on Johnson & Johnson highlights a variety of perspectives related to the company's valuation, strategic direction, and future growth potential.
UNH
US$319.97
UnitedHealth Group
7D
-0.6%
1Y
-45.8%

UNH: Margin Improvement Will Accelerate As Medicare Star Ratings Support Recovery

UnitedHealth Group's analyst price target has been raised from $433 to $440, reflecting increased confidence in margin recovery and improved earnings potential. Analysts point to sector-wide stabilization and restored pricing discipline as key factors.
EXAS
US$100.90
Exact Sciences
7D
50.5%
1Y
90.7%

Abbott To Complete $21B M&A Deal For Exact Sciences - What Investors Should Know

Nov 20
ABT
US$128.11
Abbott Laboratories
7D
-1.9%
1Y
8.8%
DHR
US$227.39
Danaher
7D
2.8%
1Y
-3.6%

DHR: Share Repurchases And Improving Profit Margins Will Drive Renewed Upside

Danaher's fair value estimate has edged slightly lower to $254.20 from $254.40, as analysts cite ongoing uncertainty in growth outlooks and mixed sector momentum. Analyst Commentary Recent analyst reports on Danaher reveal a mix of optimism around the company’s long-term positioning and concerns about near-term growth visibility and sector headwinds.
REGN
US$755.90
Regeneron Pharmaceuticals
7D
9.0%
1Y
2.4%
ABBV
US$236.28
AbbVie
7D
1.7%
1Y
33.5%
ONC
US$347.72
BeOne Medicines
7D
-4.9%
1Y
82.5%
VRTX
US$426.76
Vertex Pharmaceuticals
7D
-2.4%
1Y
-5.4%
ALNY
US$436.38
Alnylam Pharmaceuticals
7D
-2.8%
1Y
78.2%
BNTX
US$95.59
BioNTech
7D
-7.3%
1Y
-15.5%
BSX
US$96.88
Boston Scientific
7D
-5.7%
1Y
7.6%

BSX: Shares Will See Momentum From Recent Acquisition And Execution Confidence

Boston Scientific's analyst price target has been increased modestly, with the consensus now reflecting a higher fair value in addition to ongoing confidence in robust growth prospects and recent business performance, as analysts cite solid quarterly results, improving guidance, and successful strategic acquisitions. Analyst Commentary Recent analyst research on Boston Scientific highlights both optimistic and cautious perspectives regarding the company's valuation, strategic moves, and long-term growth outlook.