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U.S. Healthcare Sector Analysis

UpdatedAug 09, 2026
DataAggregated Company Financials
Companies1393
  • 7D2.9%
  • 3M15.5%
  • 1Y30.5%
  • YTD8.0%

The Healthcare industry is up 2.9% in the last week, with Eli Lilly up 3.2%. Meanwhile, CVS Health actually underperformed within the industry, shrinking 8.4% in the last week. This takes the industry's 12 month performance to a gain of 30%. Looking forward, 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
Sun, 09 Aug 2026US$7.0tUS$3.4tUS$114.2b26.2x61.7x2.1x
Tue, 07 Jul 2026US$7.0tUS$3.3tUS$122.0b25.4x57.4x2.1x
Thu, 04 Jun 2026US$6.2tUS$3.3tUS$122.5b23.4x50.7x1.9x
Sat, 02 May 2026US$6.2tUS$3.3tUS$118.0b23.6x52.5x1.9x
Mon, 30 Mar 2026US$6.0tUS$3.3tUS$125.9b21.8x47.5x1.8x
Wed, 25 Feb 2026US$6.6tUS$3.3tUS$127.8b26.6x51.8x2x
Fri, 23 Jan 2026US$6.7tUS$3.2tUS$130.5b27.9x51x2.1x
Sun, 21 Dec 2025US$6.5tUS$3.2tUS$135.2b26.2x48x2x
Tue, 18 Nov 2025US$6.2tUS$3.2tUS$133.4b25.6x46.8x2x
Thu, 16 Oct 2025US$5.9tUS$3.1tUS$140.4b24.5x42.3x1.9x
Sat, 13 Sep 2025US$5.8tUS$3.1tUS$137.6b22.7x42.1x1.9x
Mon, 11 Aug 2025US$5.4tUS$3.1tUS$139.7b23.3x38.5x1.7x
Wed, 09 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x42.9x1.8x
Fri, 06 Jun 2025US$5.4tUS$3.0tUS$127.2b23.4x42.8x1.8x
Sun, 04 May 2025US$5.6tUS$2.7tUS$126.2b24.8x44.1x2x
Tue, 01 Apr 2025US$5.6tUS$2.6tUS$81.9b26.3x69x2.1x
Thu, 27 Feb 2025US$5.9tUS$2.6tUS$79.6b25.5x73.7x2.2x
Sat, 25 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Mon, 23 Dec 2024US$5.8tUS$2.9tUS$78.2b27.7x73.5x2x
Wed, 20 Nov 2024US$5.9tUS$2.9tUS$76.7b27.1x77.3x2x
Fri, 18 Oct 2024US$6.2tUS$2.8tUS$58.6b31.2x106.6x2.2x
Sun, 15 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Tue, 13 Aug 2024US$6.0tUS$2.8tUS$55.3b30.1x108.9x2.1x
Thu, 11 Jul 2024US$6.2tUS$2.8tUS$62.2b30x99x2.2x
Sat, 08 Jun 2024US$6.2tUS$2.8tUS$63.7b30x97.5x2.2x
Mon, 06 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Wed, 03 Apr 2024US$6.3tUS$2.8tUS$84.0b32.5x74.9x2.3x
Fri, 01 Mar 2024US$6.3tUS$2.8tUS$84.2b30.9x74.6x2.3x
Sun, 28 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Tue, 26 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x67.4x2.2x
Thu, 23 Nov 2023US$5.8tUS$2.8tUS$91.2b28x63.5x2.1x
Sat, 21 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Mon, 18 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Wed, 16 Aug 2023US$6.2tUS$2.8tUS$99.4b29x62.3x2.2x
Price to Earnings Ratio

62.3x


Total Market Cap: US$6.2tTotal Earnings: US$99.4bTotal 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 61.7x 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 4.7% 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 Market4.18%
Healthcare2.88%
Healthtech14.15%
Biotech6.35%
Life Sciences3.76%
Medical Equipment3.07%
Pharma1.79%
Healthcare Services-0.23%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.7x.
    • Analysts are expecting annual earnings growth of 18.9%, which is higher than its past year's earnings growth of 5.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 28% 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
LLY Eli LillyUS$1.19k3.2%
+US$32.4b		89.5%PE39.6x
AMGN AmgenUS$410.956.7%
+US$14.3b		42.6%PE25.4x
PFE PfizerUS$26.767.0%
+US$10.0b		8.9%PE35.2x
ISRG Intuitive SurgicalUS$378.817.2%
+US$9.0b		-19.4%PE42.6x
NTRA NateraUS$322.1020.3%
+US$7.9b		112.0%PS17.1x

Latest News

NTRA
US$322.10
Natera
7D
20.3%
1Y
112.0%
MRK
US$128.58
Merck
7D
-1.2%
1Y
59.4%
JNJ
US$259.24
Johnson & Johnson
7D
1.1%
1Y
49.6%
ZTS
US$72.66
Zoetis
7D
-6.0%
1Y
-50.7%
UNH
US$407.08
UnitedHealth Group
7D
-1.8%
1Y
62.3%
INSM
US$131.10
Insmed
7D
33.0%
1Y
19.7%
Narrative Update • Aug 08

INSM: Respiratory Franchise Execution Will Outweigh Index Removal And Launch Concerns

Insmed's updated analyst price target has moved from $141.28 to $161.00. This reflects analysts' focus on the Brinsupri launch trajectory, revised revenue and margin assumptions, and a higher future P/E multiple anchored in recent research that clusters price targets mostly in the $169 to $218 range.
LLY
US$1,185.71
Eli Lilly
7D
3.2%
1Y
89.5%
Narrative Update • Aug 08

LLY: GLP-1 Leadership And Retatrutide Progress Will Drive Balanced Outlook

Analysts have increased their fair value estimate for Eli Lilly stock from $1,270.37 to $1,297.31, reflecting higher Street price targets supported by strong Q2 incretin demand, GLP-1 franchise momentum, and updated long-term modeling around obesity and diabetes therapies. Analyst Commentary Recent Street research on Eli Lilly shows a clear focus on the company’s incretin and GLP-1 portfolio, with multiple firms adjusting price targets following Q2 results, obesity and diabetes trial updates, and refreshed long term models.
ILMN
US$187.96
Illumina
7D
-8.4%
1Y
98.8%
AMGN
US$410.95
Amgen
7D
6.7%
1Y
42.6%
DVA
US$183.77
DaVita
7D
-23.5%
1Y
41.9%
CVS
US$95.70
CVS Health
7D
-8.4%
1Y
46.0%
ABBV
US$246.04
AbbVie
7D
-2.0%
1Y
24.2%
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.
TMO
US$594.00
Thermo Fisher Scientific
7D
3.4%
1Y
28.9%
Narrative Update • Aug 06

TMO: Fair Value View As End Market Recovery Counters Organic Growth Concerns

Thermo Fisher Scientific's updated fair value estimate has increased from $490.00 to about $535.02 as analysts factor in higher price targets driven by improving end market visibility, broader Q2 earnings strength, and constructive life science tools and biotech spending commentary. Analyst Commentary Recent research coverage on Thermo Fisher Scientific points to generally constructive sentiment following Q2 results, with a cluster of higher price targets anchored in improving end market visibility and broad Q2 strength.
MDLN
US$35.23
Medline
7D
-10.3%
1Y
n/a
PFE
US$26.76
Pfizer
7D
7.0%
1Y
8.9%
Narrative Update • Aug 05

PFE: Pipeline Readouts And Legal Overhang Will Shape Post Covid Earnings Trajectory

The analyst fair value estimate for Pfizer has risen from $24.00 to $25.00 as analysts factor in updated pipeline expectations, modestly stronger profit margin assumptions, and recent Street price target moves that cluster in the mid to high $20s per share. Analyst Commentary Recent Street views on Pfizer sit in a fairly tight range in the mid to high US$20s, with most price targets clustered between US$25 and US$35.
ISRG
US$378.81
Intuitive Surgical
7D
7.2%
1Y
-19.4%
Narrative Update • Aug 04

ISRG: Slowing U.S. Procedures And ACA Risks Will Pressure Rich Expectations

The updated analyst price target for Intuitive Surgical moves from about $412 to $324. This reflects lower implied revenue growth and P/E assumptions, even as analysts highlight healthy procedure trends, strong profitability, and ongoing questions around U.S. procedure momentum, automation driven adoption, and Affordable Care Act related procedure risks.