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U.S. Healthcare Sector Analysis

UpdatedMar 13, 2026
DataAggregated Company Financials
Companies1393
  • 7D-2.8%
  • 3M-4.7%
  • 1Y5.8%
  • YTD-5.2%

Over the last 7 days, the Healthcare industry has dropped 2.5%, driven by a pullback from Thermo Fisher Scientific of 8.3%. This takes the industry's 12 month performance to a gain of 7.4%. 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
Fri, 13 Mar 2026US$6.4tUS$3.3tUS$124.5b24.2x51.1x1.9x
Sun, 08 Feb 2026US$6.6tUS$3.3tUS$125.4b27.1x52.4x2x
Tue, 06 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x47.8x2x
Thu, 04 Dec 2025US$6.4tUS$3.2tUS$133.5b25.7x48x2x
Sat, 01 Nov 2025US$5.9tUS$3.1tUS$134.3b26.3x44.3x1.9x
Mon, 29 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.1x1.8x
Wed, 27 Aug 2025US$5.7tUS$3.1tUS$137.2b23.5x41.2x1.8x
Fri, 25 Jul 2025US$5.6tUS$3.0tUS$129.1b25.1x43.4x1.8x
Sun, 22 Jun 2025US$5.5tUS$3.0tUS$127.4b23.7x42.8x1.8x
Tue, 20 May 2025US$5.4tUS$3.0tUS$126.1b24x42.9x1.8x
Thu, 17 Apr 2025US$5.4tUS$2.6tUS$90.0b24.8x59.5x2x
Sat, 15 Mar 2025US$5.6tUS$2.6tUS$74.8b26.6x74.8x2.1x
Mon, 10 Feb 2025US$5.9tUS$2.6tUS$89.8b26.5x65.5x2.2x
Wed, 08 Jan 2025US$5.8tUS$2.9tUS$79.3b27.7x73.4x2x
Fri, 06 Dec 2024US$6.2tUS$2.9tUS$77.4b28.7x79.5x2.1x
Sun, 03 Nov 2024US$6.2tUS$2.9tUS$71.3b28.4x86.4x2.1x
Tue, 01 Oct 2024US$6.2tUS$2.9tUS$70.6b30.3x87.9x2.1x
Thu, 29 Aug 2024US$6.3tUS$2.8tUS$54.0b31.6x116.3x2.2x
Sat, 27 Jul 2024US$6.3tUS$2.8tUS$61.0b31.6x104x2.2x
Mon, 24 Jun 2024US$6.2tUS$2.8tUS$62.5b30x99.2x2.2x
Wed, 22 May 2024US$6.2tUS$2.8tUS$64.2b30.7x96.7x2.2x
Fri, 19 Apr 2024US$5.9tUS$2.8tUS$84.4b30x70.2x2.1x
Sun, 17 Mar 2024US$6.2tUS$2.8tUS$84.5b31.5x73.7x2.2x
Tue, 13 Feb 2024US$6.2tUS$2.8tUS$76.4b32x81.2x2.2x
Thu, 11 Jan 2024US$6.4tUS$2.8tUS$90.1b32.3x70.9x2.3x
Sat, 09 Dec 2023US$6.0tUS$2.8tUS$91.4b29.4x65.1x2.1x
Mon, 06 Nov 2023US$5.7tUS$2.8tUS$88.4b26.7x65x2x
Wed, 04 Oct 2023US$5.8tUS$2.8tUS$98.2b26.5x59.2x2.1x
Fri, 01 Sep 2023US$6.1tUS$2.8tUS$98.8b27.7x61.6x2.2x
Sun, 30 Jul 2023US$6.1tUS$2.8tUS$115.6b28x52.5x2.2x
Tue, 27 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.5x2.2x
Thu, 25 May 2023US$5.9tUS$2.7tUS$110.9b24x53x2.2x
Sat, 22 Apr 2023US$6.0tUS$2.5tUS$117.6b24.9x51x2.4x
Mon, 20 Mar 2023US$5.6tUS$2.5tUS$123.9b23.2x45.3x2.3x
Price to Earnings Ratio

45.3x


Total Market Cap: US$5.6tTotal Earnings: US$123.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.4x202420252026
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 51.3x which is lower than its 3-year average PE of 65.4x.
  • 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 9.9% 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-2.29%
Healthcare-2.76%
Pharma-0.51%
Biotech-0.58%
Healthcare Services-3.84%
Medical Equipment-5.42%
Healthtech-7.31%
Life Sciences-8.38%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.1%, 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 50% 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
JNJ Johnson & JohnsonUS$242.041.0%
+US$5.8b		48.5%PE21.8x
VRTX Vertex PharmaceuticalsUS$478.133.8%
+US$4.4b		-4.9%PE30.7x
UTHR United TherapeuticsUS$532.829.8%
+US$2.1b		74.5%PE17.5x
XENE Xenon PharmaceuticalsUS$57.9037.7%
+US$1.9b		64.6%PS723.5x
HIMS Hims & Hers HealthUS$23.8450.1%
+US$1.8b		-24.4%PE42.3x

Latest News

JNJ
US$242.04
Johnson & Johnson
7D
1.0%
1Y
48.5%
UTHR
US$532.82
United Therapeutics
7D
9.8%
1Y
74.5%
MCK
US$944.36
McKesson
7D
1.4%
1Y
46.7%

MCK: Biosimilar Optionality And Premium Safe Haven Position Will Shape Future Returns

Analysts have increased their McKesson price target from $980.40 to $995.27, citing higher Street targets that reflect new biosimilar optionality and continued interest in the stock as a perceived healthcare safe haven, even at a premium valuation. Analyst Commentary Bullish analysts are leaning into McKesson's role as a perceived healthcare safe haven and the new biosimilar angle, using these themes to justify higher valuation levels than the recent three year average.
MDT
US$87.38
Medtronic
7D
-6.1%
1Y
-5.4%
HIMS
US$23.84
Hims & Hers Health
7D
50.1%
1Y
-24.4%
XENE
US$57.90
Xenon Pharmaceuticals
7D
37.7%
1Y
64.6%
DNTH
US$80.32
Dianthus Therapeutics
7D
30.8%
1Y
277.4%
BSX
US$68.55
Boston Scientific
7D
-6.1%
1Y
-28.1%
VRTX
US$478.13
Vertex Pharmaceuticals
7D
3.8%
1Y
-4.9%
ABBV
US$225.37
AbbVie
7D
-3.0%
1Y
6.5%

ABBV: Future Returns Will Depend On Immunology Encore And Deal Optionality Uncertainty

The analyst price target for AbbVie edges higher to align with our fair value shift from $248.29 to $248.86, as analysts highlight ongoing indication expansion in immunology, potential operating leverage, and multiple expansion drivers, even as some firms note emerging competition and a more balanced risk and reward profile. Analyst Commentary Recent research on AbbVie reflects a split view, with some analysts pointing to upside tied to immunology growth and pipeline execution, while others flag competition risk and a more balanced risk and reward profile at current levels.
SYK
US$337.21
Stryker
7D
-9.0%
1Y
-7.3%
PFE
US$26.86
Pfizer
7D
0.9%
1Y
4.9%
ISRG
US$479.27
Intuitive Surgical
7D
-3.5%
1Y
0.5%

ISRG: Future Platform Adoption And Policy Shifts Will Test Premium Multiple Assumptions

The analyst price target for Intuitive Surgical has been trimmed slightly, with modest shifts in fair value and discount rate inputs as analysts balance lower targets from firms like UBS and Citi against higher targets tied to Dv5 driven growth assumptions and sector recovery themes cited by other firms. Analyst Commentary Recent research on Intuitive Surgical shows a split tape, with some firms lifting targets on the back of Dv5 related growth assumptions and sector recovery themes, while others trim targets and stress execution and valuation risks.
TMO
US$475.89
Thermo Fisher Scientific
7D
-8.3%
1Y
-6.5%

TMO: 2026 Tools Recovery And AI Use In Labs Will Support Upside

Analysts have raised their consolidated price target for Thermo Fisher Scientific by about $25, citing updated expectations for steady mid single digit organic growth into 2026, modestly higher profit margins and a slightly lower future P/E multiple. Analyst Commentary Recent street research points to a cluster of higher price targets for Thermo Fisher Scientific, with several bullish analysts updating their models to reflect expectations for mid single digit organic growth into 2026, slightly stronger margins and an adjusted P/E framework.
DHR
US$186.26
Danaher
7D
-7.8%
1Y
-8.7%

DHR: Masimo Cash Deal Will Support Re Rating And Premium Multiple

The analyst price target for Danaher has moved higher by a mid single digit dollar amount, reflecting updated assumptions for slightly stronger revenue growth and margins, alongside recent Street research that raised targets following the Masimo acquisition announcement and sector wide target adjustments. Analyst Commentary Recent Street research around Danaher reflects a mix of optimism on the Masimo acquisition and valuation, alongside a more cautious stance on deal terms and execution risk.
UNH
US$277.05
UnitedHealth Group
7D
-4.1%
1Y
-42.5%

UNH: Medicare Advantage Reset And Rebate Actions Will Support Multi-Year Earnings Recovery

Our updated view trims UnitedHealth Group's fair value estimate to $364.63 from $392.24 as analysts factor in softer revenue growth assumptions, a slightly higher discount rate, and modestly lower long term profit expectations following a broad wave of reduced Street price targets on the stock. Analyst Commentary Street research on UnitedHealth has turned more cautious in the near term, with a cluster of lower price targets from multiple firms and a smaller group of more constructive views.