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U.S. Healthcare Sector Analysis

UpdatedMar 28, 2026
DataAggregated Company Financials
Companies1388
  • 7D-1.3%
  • 3M-9.4%
  • 1Y0.9%
  • YTD-8.7%

Over the last 7 days, the Healthcare industry has dropped 1.3%, driven by Eli Lilly declining 3.1%. As for the longer term, the industry's performance has been flat for the past year. Looking forward, earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Sun, 07 May 2023US$6.0tUS$2.7tUS$114.0b25x53x2.2x
Tue, 04 Apr 2023US$5.8tUS$2.5tUS$121.7b24.4x47.9x2.3x
Price to Earnings Ratio

47.9x


Total Market Cap: US$5.8tTotal Earnings: US$121.7bTotal Revenue: US$2.5tTotal 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 48.5x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.9x.
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 9.6% 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-1.92%
Healthcare-1.26%
Pharma-0.057%
Biotech-0.71%
Life Sciences-1.87%
Medical Equipment-2.14%
Healthcare Services-3.35%
Healthtech-5.13%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.8x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 40% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 11% 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$119.634.8%
+US$13.5b		34.1%PE16.2x
JNJ Johnson & JohnsonUS$240.452.2%
+US$12.2b		46.9%PE21.6x
ABBV AbbVieUS$209.402.1%
+US$7.8b		2.0%PE88.5x
BMY Bristol-Myers SquibbUS$58.541.8%
+US$2.5b		-2.5%PE16.9x
INSM InsmedUS$145.306.8%
+US$2.0b		86.3%PS51.6x

Latest News

MDT
US$87.14
Medtronic
7D
1.1%
1Y
-0.6%
LLY
US$878.24
Eli Lilly
7D
-3.1%
1Y
6.8%
ABBV
US$209.40
AbbVie
7D
2.1%
1Y
2.0%
BMY
US$58.54
Bristol-Myers Squibb
7D
1.8%
1Y
-2.5%
DHR
US$181.52
Danaher
7D
-4.1%
1Y
-11.8%
HCA
US$471.85
HCA Healthcare
7D
-4.5%
1Y
37.9%

HCA: Future Upside Will Center On Georgia Medicaid SDP Earnings Support

HCA Healthcare's analyst price targets have moved higher by a broad range that stretches into the mid $600s, reflecting analysts' updated models around Georgia's newly approved $1.9b Medicaid SDP program and potential efficiency gains from AI that could influence valuation multiples. Analyst Commentary Recent Street research around HCA Healthcare centers on two themes that matter for valuation: the newly approved Georgia Medicaid SDP program and potential AI driven efficiency gains.
JNJ
US$240.45
Johnson & Johnson
7D
2.2%
1Y
46.9%

JNJ: Fair Outlook Balances Legal Overhang With Core Healthcare Resilience

Analysts lifted the Johnson & Johnson fair value estimate by about $3.79 to $241.08, citing higher assumed revenue growth, slightly adjusted profit margin expectations, and a modestly higher future P/E multiple supported by recent upward price target revisions across the Street. Analyst Commentary Recent Street research on Johnson & Johnson has leaned more constructive, with a series of higher price targets clustered above the latest fair value estimate.
MRK
US$119.63
Merck
7D
4.8%
1Y
34.1%
APGE
US$77.82
Apogee Therapeutics
7D
17.8%
1Y
95.9%
SYK
US$327.44
Stryker
7D
-2.5%
1Y
-10.2%
GILD
US$134.25
Gilead Sciences
7D
-2.2%
1Y
20.1%
INSM
US$145.30
Insmed
7D
6.8%
1Y
86.3%
ISRG
US$452.66
Intuitive Surgical
7D
-5.3%
1Y
-8.0%

ISRG: Future Platform Adoption And Policy Shifts Will Shape Premium Multiple Sustainability

Intuitive Surgical's updated analyst price target edges lower to $457.50 from $464.58, as analysts balance slightly firmer revenue growth and profit margin assumptions with a modestly lower forward P/E multiple after a mix of recent target cuts and upgrades across the Street. Analyst Commentary Recent research updates on Intuitive Surgical show a mixed backdrop, with several firms trimming price targets even as others reiterate or lift their views.
VRTX
US$433.07
Vertex Pharmaceuticals
7D
-4.6%
1Y
-12.1%

VRTX: Renal Trial Success And Nephrology Pipeline Will Drive Next Phase

Vertex Pharmaceuticals' analyst fair value estimate has moved from $504.04 to $547.72. Analysts point to higher modeled revenue growth, slightly stronger profit margins, a richer future P/E assumption, and a wave of Street price target hikes tied to positive povetacicept Phase 3 RAINIER data and the growing nephrology pipeline.
UNH
US$259.02
UnitedHealth Group
7D
-6.0%
1Y
-49.8%
MDGL
US$510.68
Madrigal Pharmaceuticals
7D
15.8%
1Y
55.8%

MDGL: Cirrhosis Expansion And MASH Combinations Will Drive Future Repricing

Analysts now set the fair value estimate for Madrigal Pharmaceuticals at $529, up $27 from $502. This reflects updated models that factor in gross to net adjustments, recent licensing activity, and mixed revisions to Street price targets across firms.