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U.S. Healthcare Sector Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies1386
  • 7D0.7%
  • 3M3.7%
  • 1Y7.2%
  • YTD0.3%

The Healthcare is pretty flat in the last 7 days, but AbbVie has stood out, gaining 3.5%. As for the the longer term, the industry is up 7.2% over the past 12 months. 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
Thu, 19 Feb 2026US$6.5tUS$3.3tUS$128.1b26.6x51.1x2x
Sat, 17 Jan 2026US$6.6tUS$3.2tUS$136.3b27.3x48.3x2.1x
Mon, 15 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.8x2x
Wed, 12 Nov 2025US$6.1tUS$3.2tUS$133.6b26.4x45.6x1.9x
Fri, 10 Oct 2025US$6.1tUS$3.1tUS$138.0b24.3x44.3x2x
Sun, 07 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.5x1.8x
Tue, 05 Aug 2025US$5.4tUS$3.1tUS$127.4b23.2x42.4x1.8x
Thu, 03 Jul 2025US$5.6tUS$3.0tUS$127.8b24x43.6x1.8x
Sat, 31 May 2025US$5.4tUS$3.0tUS$127.3b23.1x42.3x1.8x
Mon, 28 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Wed, 26 Mar 2025US$5.8tUS$2.6tUS$81.7b27.1x70.7x2.2x
Fri, 21 Feb 2025US$5.9tUS$2.6tUS$80.9b26.7x72.4x2.2x
Sun, 19 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.1x2x
Tue, 17 Dec 2024US$5.9tUS$2.9tUS$77.7b28.4x76x2x
Thu, 14 Nov 2024US$6.2tUS$2.9tUS$76.4b27.9x81.4x2.1x
Sat, 12 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x103x2.2x
Mon, 09 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.4x2.2x
Wed, 07 Aug 2024US$6.2tUS$2.9tUS$63.2b30.3x97.8x2.2x
Fri, 05 Jul 2024US$6.1tUS$2.8tUS$62.2b29.9x97.7x2.2x
Sun, 02 Jun 2024US$6.1tUS$2.8tUS$64.0b29.9x95.2x2.2x
Tue, 30 Apr 2024US$6.0tUS$2.8tUS$68.2b31.5x87.7x2.1x
Thu, 28 Mar 2024US$6.3tUS$2.8tUS$82.3b32.4x77.1x2.3x
Sat, 24 Feb 2024US$6.3tUS$2.8tUS$85.6b31.1x73.9x2.3x
Mon, 22 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.5x2.2x
Wed, 20 Dec 2023US$6.1tUS$2.8tUS$91.5b32.7x67.1x2.2x
Fri, 17 Nov 2023US$5.8tUS$2.8tUS$90.4b27.7x64.1x2.1x
Sun, 15 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.3x2.1x
Tue, 12 Sep 2023US$6.1tUS$2.8tUS$98.6b27.8x61.5x2.2x
Thu, 10 Aug 2023US$6.2tUS$2.8tUS$99.6b28.2x62.2x2.2x
Sat, 08 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Mon, 05 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Wed, 03 May 2023US$6.0tUS$2.7tUS$117.7b24.2x50.9x2.2x
Fri, 31 Mar 2023US$5.7tUS$2.5tUS$124.2b24.2x45.9x2.3x
Sun, 26 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 51.1x 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-0.74%
Healthcare0.73%
Healthcare Services1.44%
Medical Equipment1.28%
Biotech1.27%
Healthtech1.26%
Pharma0.82%
Life Sciences-3.09%
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 16.6%, which is higher than its past year's earnings growth of 7.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% 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 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$228.723.5%
+US$13.8b		15.9%PE95.7x
JNJ Johnson & JohnsonUS$244.991.7%
+US$10.0b		55.2%PE22x
UNH UnitedHealth GroupUS$288.203.3%
+US$8.4b		-43.6%PE21.7x
AMGN AmgenUS$379.733.6%
+US$7.3b		29.0%PE26.5x
MRK MerckUS$121.662.0%
+US$5.8b		42.1%PE16.5x

Latest News

ZTS
US$129.13
Zoetis
7D
0.4%
1Y
-17.6%
GILD
US$152.74
Gilead Sciences
7D
-2.0%
1Y
41.9%
LLY
US$1,020.56
Eli Lilly
7D
0.5%
1Y
17.7%
JNJ
US$244.99
Johnson & Johnson
7D
1.7%
1Y
55.2%
CI
US$290.12
Cigna Group
7D
-1.6%
1Y
-2.4%
MRK
US$121.66
Merck
7D
2.0%
1Y
42.1%
MDT
US$98.49
Medtronic
7D
-2.6%
1Y
13.2%
DHR
US$208.56
Danaher
7D
-5.2%
1Y
1.7%

DHR: Masimo Deal And Higher Future P/E Will Support Premium Multiple

Danaher’s updated analyst price target edges slightly lower to about $265, as analysts balance modest tweaks to revenue growth, profit margin and P/E assumptions with a broadly supportive run of recent target increases across the Street. Analyst Commentary Recent Street research on Danaher is clustered around higher price targets, with several bullish analysts lifting their numbers by single digit to low double digit dollar amounts.
PFE
US$27.37
Pfizer
7D
-1.3%
1Y
5.7%
UNH
US$288.20
UnitedHealth Group
7D
3.3%
1Y
-43.6%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$379.73
Amgen
7D
3.6%
1Y
29.0%

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.
ICLR
US$96.50
ICON
7D
-27.5%
1Y
-49.6%
SYK
US$377.32
Stryker
7D
3.7%
1Y
-2.9%
BSX
US$76.28
Boston Scientific
7D
3.8%
1Y
-27.8%
ABBV
US$228.72
AbbVie
7D
3.5%
1Y
15.9%

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$513.56
Thermo Fisher Scientific
7D
-2.6%
1Y
-3.3%

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.