Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies1401
  • 7D-1.7%
  • 3M8.7%
  • 1Y23.6%
  • YTD3.4%

Over the last 7 days, the Healthcare industry has dropped 1.7%, driven by Eli Lilly declining 3.0%. On the other hand Abbott Laboratories is actually up 10%. This takes the industry's 12 month performance to a gain of 24%. Earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 22 Jul 2026US$6.9tUS$3.3tUS$123.3b25.2x55.6x2.1x
Fri, 19 Jun 2026US$6.4tUS$3.3tUS$121.7b23.3x52.6x1.9x
Sun, 17 May 2026US$6.2tUS$3.3tUS$122.3b22.6x50.5x1.9x
Tue, 14 Apr 2026US$6.2tUS$3.3tUS$127.2b23.1x48.8x1.9x
Thu, 12 Mar 2026US$6.4tUS$3.3tUS$124.3b24.9x51.3x2x
Sat, 07 Feb 2026US$6.4tUS$3.3tUS$125.4b27.1x51.4x2x
Mon, 05 Jan 2026US$6.5tUS$3.2tUS$135.6b25.7x47.8x2x
Wed, 03 Dec 2025US$6.4tUS$3.2tUS$133.5b25.7x47.9x2x
Fri, 31 Oct 2025US$6.0tUS$3.1tUS$124.5b25.8x48x1.9x
Sun, 28 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.1x1.8x
Tue, 26 Aug 2025US$5.7tUS$3.1tUS$137.2b23.4x41.5x1.8x
Thu, 24 Jul 2025US$5.5tUS$3.0tUS$128.5b25.3x42.7x1.8x
Sat, 21 Jun 2025US$5.5tUS$3.0tUS$127.4b23.7x42.8x1.8x
Mon, 19 May 2025US$5.4tUS$3.0tUS$126.1b23.3x42.9x1.8x
Wed, 16 Apr 2025US$5.4tUS$2.6tUS$89.8b25.2x60x2x
Fri, 14 Mar 2025US$5.6tUS$2.6tUS$74.9b26.1x75.2x2.1x
Sun, 09 Feb 2025US$5.9tUS$2.6tUS$89.8b26.5x65.5x2.2x
Tue, 07 Jan 2025US$5.8tUS$2.9tUS$79.3b27.4x73.3x2x
Thu, 05 Dec 2024US$6.1tUS$2.9tUS$77.5b29.5x79.2x2.1x
Sat, 02 Nov 2024US$6.1tUS$2.9tUS$71.3b28.4x85.8x2.1x
Mon, 30 Sep 2024US$6.2tUS$2.9tUS$70.6b30.1x87.9x2.1x
Wed, 28 Aug 2024US$6.3tUS$2.8tUS$56.5b31.8x111x2.2x
Fri, 26 Jul 2024US$6.4tUS$2.8tUS$61.6b31.6x103.4x2.2x
Sun, 23 Jun 2024US$6.2tUS$2.8tUS$62.5b30x99.2x2.2x
Tue, 21 May 2024US$6.2tUS$2.8tUS$64.1b30.9x97.2x2.2x
Thu, 18 Apr 2024US$5.9tUS$2.8tUS$84.3b30.5x70.3x2.1x
Sat, 16 Mar 2024US$6.2tUS$2.8tUS$84.5b31x73.9x2.2x
Mon, 12 Feb 2024US$6.2tUS$2.8tUS$76.3b31.6x81x2.2x
Wed, 10 Jan 2024US$6.4tUS$2.8tUS$90.1b31.9x70.9x2.3x
Fri, 08 Dec 2023US$6.0tUS$2.8tUS$91.4b29x65.1x2.1x
Sun, 05 Nov 2023US$5.7tUS$2.8tUS$88.4b26.7x65x2x
Tue, 03 Oct 2023US$5.9tUS$2.8tUS$98.2b26.7x59.7x2.1x
Thu, 31 Aug 2023US$6.1tUS$2.8tUS$98.7b27.9x62.2x2.2x
Sat, 29 Jul 2023US$6.1tUS$2.8tUS$115.6b28x52.5x2.2x
Price to Earnings Ratio

52.5x


Total Market Cap: US$6.1tTotal Earnings: US$115.6bTotal 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 55.6x 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 2.9% 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-1.36%
Healthcare-1.65%
Healthtech-0.56%
Biotech-1.24%
Life Sciences-1.27%
Medical Equipment-1.62%
Pharma-1.90%
Healthcare Services-1.91%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.0x.
    • Analysts are expecting annual earnings growth of 17.2%, 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 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
LLY Eli LillyUS$1.18k2.0%
+US$20.4b		51.4%PE41.5x
ABBV AbbVieUS$256.104.6%
+US$20.0b		36.9%PE125.9x
ABT Abbott LaboratoriesUS$99.6712.0%
+US$18.7b		-20.7%PE32.1x
MRK MerckUS$126.264.5%
+US$13.5b		54.7%PE34.9x
UNH UnitedHealth GroupUS$436.352.6%
+US$10.1b		53.0%PE28.1x

Latest News

DHR
US$179.01
Danaher
7D
-10.1%
1Y
-5.7%
BMY
US$60.93
Bristol-Myers Squibb
7D
7.0%
1Y
26.9%
LLY
US$1,175.41
Eli Lilly
7D
2.0%
1Y
51.4%
MRK
US$126.26
Merck
7D
4.5%
1Y
54.7%
MRNA
US$59.66
Moderna
7D
-11.5%
1Y
82.3%
CVS
US$110.60
CVS Health
7D
4.2%
1Y
81.1%
Seeking Alpha • Jul 20

CVS Health Update: The C- Student Now Pulling Down A B+

Summary CVS Health (CVS) is executing a significant turnaround, with new management driving operational improvements and a doubling of the share price since I last wrote in early 2025. CVS's fundamentals are solid: debt leverage is declining, cash flow is robust, and the Health Care Benefits segment’s margin rebounded to 8.5% as of 1Q2026. Despite improved profitability and projected 10–15% annual EPS growth, CVS stock no longer appears to be in the bargain bin. I maintain a 'Hold' rating on CVS, pending the August 5 earnings report.  I suggest what to focus upon when management reports. Read the full article on Seeking Alpha
AMGN
US$366.24
Amgen
7D
3.1%
1Y
19.8%
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.
ELV
US$393.44
Elevance Health
7D
-7.8%
1Y
39.7%
ABBV
US$256.10
AbbVie
7D
4.6%
1Y
36.9%
ISRG
US$350.06
Intuitive Surgical
7D
-7.8%
1Y
-31.5%
Seeking Alpha • Jul 17

Intuitive Surgical Q2: The Market Is Missing The Bigger Picture

Summary Intuitive Surgical, Inc. remains a compelling long-term compounder, with operational improvements and robust growth prospects despite recent market headwinds. ISRG delivered solid Q2 results: revenue and EPS beat estimates, da Vinci procedures grew 20%, and gross margin reached 70%, reinforcing ISRG's strong positioning. Current valuation near a 5-year low—~35x forward earnings—offers a more attractive entry point, with multiple compression creating a margin of safety. I maintain my Buy rating on ISRG, as secular trends, international expansion, and R&D investment support continued high-teens growth and defend strong moats. Read the full article on Seeking Alpha
ABT
US$99.67
Abbott Laboratories
7D
12.0%
1Y
-20.7%
UNH
US$436.35
UnitedHealth Group
7D
2.6%
1Y
53.0%
JNJ
US$250.61
Johnson & Johnson
7D
-1.3%
1Y
49.2%
Narrative Update • Jul 17

JNJ: Oncology Focus And New Medicines Will Drive Confidence Through 2026

Analysts raised the Johnson & Johnson fair value estimate to $305 from $265 after a series of price target increases tied to a recent quarterly beat, higher full year guidance, and growing confidence in the company's new medicines and projected revenue trajectory through 2026. Analyst Commentary Recent Street research around Johnson & Johnson has turned more constructive, with a cluster of upgrades and higher price targets following the latest quarterly results and revised guidance.
TMO
US$523.46
Thermo Fisher Scientific
7D
-2.0%
1Y
22.4%
EW
US$84.55
Edwards Lifesciences
7D
-6.1%
1Y
10.8%
Narrative Update • Jul 15

EW: CMS TAVR Coverage Expansion Will Drive Future Structural Heart Upside

Edwards Lifesciences' analyst fair value estimate has moved slightly higher to $98.92 from $96.92 as analysts factor in higher price targets in the $100 to $110 range, supported by views of stable procedure volumes, growing TAVR adoption, and potential benefits from the proposed CMS TAVR coverage changes. Analyst Commentary Recent Street research around Edwards Lifesciences clusters around higher price targets and constructive views on execution in transcatheter therapies, while still flagging a few areas for investors to watch.
CI
US$290.49
Cigna Group
7D
-4.2%
1Y
-3.2%