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U.S. Healthcare Sector Analysis

UpdatedFeb 18, 2026
DataAggregated Company Financials
Companies1386
  • 7D0.6%
  • 3M2.6%
  • 1Y7.7%
  • YTD-0.3%

Over the last 7 days, the Healthcare industry has remained flat, although notably UnitedHealth Group gained 7.3%. As for the the longer term, the industry is up 7.4% over the past 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 18 Feb 2026US$6.6tUS$3.3tUS$128.7b26.2x50.9x2x
Fri, 16 Jan 2026US$6.6tUS$3.2tUS$136.3b27.3x48.6x2.1x
Sun, 14 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.8x2x
Tue, 11 Nov 2025US$6.0tUS$3.2tUS$133.4b25.4x45.1x1.9x
Thu, 09 Oct 2025US$6.0tUS$3.1tUS$137.9b24.7x43.5x1.9x
Sat, 06 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.5x1.8x
Mon, 04 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Wed, 02 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Fri, 30 May 2025US$5.3tUS$3.0tUS$127.3b23x41.9x1.8x
Sun, 27 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Tue, 25 Mar 2025US$5.7tUS$2.6tUS$81.8b27.1x69.9x2.2x
Thu, 20 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Sat, 18 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.5x2x
Mon, 16 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Wed, 13 Nov 2024US$6.3tUS$2.9tUS$76.7b28.4x82.3x2.2x
Fri, 11 Oct 2024US$6.2tUS$2.8tUS$60.0b29.5x103.3x2.2x
Sun, 08 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Tue, 06 Aug 2024US$6.4tUS$2.9tUS$64.1b30.1x99.1x2.2x
Thu, 04 Jul 2024US$6.1tUS$2.8tUS$62.3b29.6x97.5x2.2x
Sat, 01 Jun 2024US$6.0tUS$2.8tUS$64.0b29.9x94.1x2.1x
Mon, 29 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Wed, 27 Mar 2024US$6.2tUS$2.8tUS$82.3b31.6x75.6x2.2x
Fri, 23 Feb 2024US$6.2tUS$2.8tUS$86.8b30.7x71.8x2.2x
Sun, 21 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Tue, 19 Dec 2023US$6.1tUS$2.8tUS$91.5b32.1x66.5x2.2x
Thu, 16 Nov 2023US$5.8tUS$2.8tUS$90.9b28x63.5x2.1x
Sat, 14 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.4x2.1x
Mon, 11 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Wed, 09 Aug 2023US$6.2tUS$2.8tUS$99.3b28.1x62.3x2.2x
Fri, 07 Jul 2023US$5.9tUS$2.7tUS$110.3b25.9x53.6x2.2x
Sun, 04 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 02 May 2023US$6.0tUS$2.5tUS$118.4b24.9x50.8x2.4x
Thu, 30 Mar 2023US$5.7tUS$2.5tUS$123.7b23.6x45.9x2.3x
Sat, 25 Feb 2023US$5.7tUS$2.5tUS$123.7b24.4x46.4x2.3x
Price to Earnings Ratio

46.4x


Total Market Cap: US$5.7tTotal Earnings: US$123.7bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.3x202420252026
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 50.8x which is lower than its 3-year average PE of 65.3x.
  • 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 9.8% 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-1.58%
Healthcare0.56%
Healthcare Services3.67%
Biotech1.69%
Pharma1.27%
Medical Equipment-0.088%
Healthtech-5.71%
Life Sciences-6.74%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.3x.
    • Analysts are expecting annual earnings growth of 16.4%, which is higher than its past year's earnings growth of 7.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 21% over the next 5 years.
  • However this is lower than its past earnings growth rate of 56% 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
ABBV AbbVieUS$232.864.7%
+US$18.4b		18.7%PE97.4x
UNH UnitedHealth GroupUS$289.095.8%
+US$14.4b		-42.3%PE21.7x
JNJ Johnson & JohnsonUS$243.332.1%
+US$12.1b		57.0%PE21.9x
MRK MerckUS$121.573.8%
+US$11.0b		46.0%PE16.5x
GILD Gilead SciencesUS$155.275.5%
+US$10.0b		47.5%PE22.6x

Latest News

MDT
US$96.41
Medtronic
7D
-4.9%
1Y
12.0%
DHR
US$206.36
Danaher
7D
-6.1%
1Y
0.9%
JNJ
US$243.33
Johnson & Johnson
7D
2.1%
1Y
57.0%
GILD
US$155.27
Gilead Sciences
7D
5.5%
1Y
47.5%
IQV
US$164.44
IQVIA Holdings
7D
-9.9%
1Y
-14.9%
LLY
US$1,036.05
Eli Lilly
7D
1.1%
1Y
20.9%
AMGN
US$373.36
Amgen
7D
2.4%
1Y
27.5%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.
UNH
US$289.09
UnitedHealth Group
7D
5.8%
1Y
-42.3%

UNH: Government Managed Care Turnaround Is Expected To Restore Earnings Power

Analysts have lowered their average price target on UnitedHealth by about $52 to $440. The new target reflects updated views that incorporate slower revenue growth assumptions, a modestly higher discount rate, and a lower future P/E multiple, even as profit margin expectations are slightly higher.
IDXX
US$626.17
IDEXX Laboratories
7D
-3.1%
1Y
39.4%
HCA
US$534.78
HCA Healthcare
7D
6.5%
1Y
68.9%
ZTS
US$125.56
Zoetis
7D
-2.0%
1Y
-19.8%
ICLR
US$88.62
ICON
7D
-38.7%
1Y
-53.0%
MRK
US$121.57
Merck
7D
3.8%
1Y
46.0%
VEEV
US$176.82
Veeva Systems
7D
-5.4%
1Y
-24.1%
ABBV
US$232.86
AbbVie
7D
4.7%
1Y
18.7%

ABBV: Future Returns Will Depend On Immunology Pipeline Clarity And M&A Uncertainty

Analysts have trimmed their price targets for AbbVie by a small amount. This reflects slightly lower revenue growth and P/E assumptions, while also incorporating a modestly higher profit margin and recent mixed research views around competition and pipeline visibility.
TMO
US$501.59
Thermo Fisher Scientific
7D
-7.1%
1Y
-4.1%

TMO: 2026 Tools Upside And AI Partnerships Will Reshape Earnings Power

Analysts have lifted their fair value estimate for Thermo Fisher Scientific from about $662 to roughly $743, citing updated views on discount rates, revenue growth, profit margins, and future P/E assumptions in light of recent price target increases across the Street. Analyst Commentary Street research around Thermo Fisher Scientific has turned more constructive, with a series of higher price targets that align with the updated fair value estimate.