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U.S. Healthcare Sector Analysis

UpdatedJan 14, 2026
DataAggregated Company Financials
Companies1398
  • 7D-0.7%
  • 3M10.8%
  • 1Y12.4%
  • YTD1.5%

Over the last 7 days, the Healthcare industry has risen 1.1%, driven by gains from Johnson & Johnson of 4.3%. This takes the industry's 12 month performance to a gain of 12%. 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
Wed, 14 Jan 2026US$6.6tUS$3.2tUS$136.3b26.8x48.5x2.1x
Fri, 12 Dec 2025US$6.3tUS$3.2tUS$134.1b26.2x47.2x2x
Sun, 09 Nov 2025US$6.0tUS$3.2tUS$133.5b25.5x45x1.9x
Tue, 07 Oct 2025US$6.0tUS$3.1tUS$137.8b24.6x43.8x2x
Thu, 04 Sep 2025US$5.7tUS$3.1tUS$137.6b23x41.5x1.8x
Sat, 02 Aug 2025US$5.4tUS$3.1tUS$126.5b23.2x42.6x1.7x
Mon, 30 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Wed, 28 May 2025US$5.3tUS$3.0tUS$126.9b22.9x41.7x1.7x
Fri, 25 Apr 2025US$5.3tUS$2.7tUS$98.2b25.4x54.2x2x
Sun, 23 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x69.9x2.2x
Tue, 18 Feb 2025US$5.8tUS$2.6tUS$82.1b26.7x70.8x2.2x
Thu, 16 Jan 2025US$5.8tUS$2.9tUS$78.9b27.7x73.9x2x
Sat, 14 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76.1x2x
Mon, 11 Nov 2024US$6.3tUS$2.9tUS$76.0b28.3x82.8x2.2x
Wed, 09 Oct 2024US$6.1tUS$2.8tUS$60.1b29.4x101.7x2.2x
Fri, 06 Sep 2024US$6.3tUS$2.8tUS$60.4b31.3x104.1x2.2x
Sun, 04 Aug 2024US$6.4tUS$2.9tUS$63.7b31x99.9x2.2x
Tue, 02 Jul 2024US$6.2tUS$2.8tUS$62.2b30.3x99.3x2.2x
Thu, 30 May 2024US$6.1tUS$2.8tUS$64.2b29.7x94.7x2.2x
Sat, 27 Apr 2024US$6.0tUS$2.8tUS$68.2b31.5x87.7x2.1x
Mon, 25 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Wed, 21 Feb 2024US$6.2tUS$2.8tUS$82.5b30.5x75.4x2.2x
Fri, 19 Jan 2024US$6.3tUS$2.8tUS$90.8b32.2x69.4x2.2x
Sun, 17 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Tue, 14 Nov 2023US$5.7tUS$2.8tUS$91.1b26.5x62.6x2x
Thu, 12 Oct 2023US$5.9tUS$2.8tUS$98.3b25.9x59.9x2.1x
Sat, 09 Sep 2023US$6.1tUS$2.8tUS$98.6b26.7x61.9x2.2x
Mon, 07 Aug 2023US$6.1tUS$2.8tUS$100.3b28.7x60.9x2.2x
Wed, 05 Jul 2023US$6.0tUS$2.7tUS$110.2b26.4x54.4x2.2x
Fri, 02 Jun 2023US$5.9tUS$2.7tUS$110.5b24.7x53.1x2.2x
Sun, 30 Apr 2023US$6.0tUS$2.5tUS$118.4b24.7x50.4x2.4x
Tue, 28 Mar 2023US$5.7tUS$2.5tUS$124.2b23.8x45.8x2.3x
Thu, 23 Feb 2023US$5.8tUS$2.5tUS$131.3b23.9x44.3x2.4x
Sat, 21 Jan 2023US$6.0tUS$2.5tUS$135.9b23.3x44.2x2.4x
Price to Earnings Ratio

44.2x


Total Market Cap: US$6.0tTotal Earnings: US$135.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.1x202420252026
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 48.4x which is lower than its 3-year average PE of 65.1x.
  • 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 9.1% 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 Market0.24%
Healthcare-0.70%
Pharma1.57%
Biotech-0.22%
Life Sciences-1.22%
Healthcare Services-2.77%
Medical Equipment-2.85%
Healthtech-4.57%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.7x.
    • Analysts are expecting annual earnings growth of 17.3%, which is higher than its past year's earnings decline of 0.2% 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 56% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 13% 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$213.654.3%
+US$21.3b		47.6%PE20.5x
LLY Eli LillyUS$1.08k1.2%
+US$11.8b		44.6%PE52.4x
RVMD Revolution MedicinesUS$119.9550.2%
+US$7.8b		201.2%PB14.5x
ONC BeOne MedicinesUS$351.069.6%
+US$3.4b		74.7%PE566.7x
BMY Bristol-Myers SquibbUS$55.922.8%
+US$3.1b		0.3%PE18.9x

Latest News

MRNA
US$39.60
Moderna
7D
10.3%
1Y
13.9%
RVMD
US$119.95
Revolution Medicines
7D
50.2%
1Y
201.2%
JNJ
US$213.65
Johnson & Johnson
7D
4.3%
1Y
47.6%
BNTX
US$107.19
BioNTech
7D
9.3%
1Y
-4.7%
TMO
US$607.08
Thermo Fisher Scientific
7D
-2.2%
1Y
9.0%
BMY
US$55.92
Bristol-Myers Squibb
7D
2.8%
1Y
0.3%
MDT
US$96.42
Medtronic
7D
-3.9%
1Y
13.1%
LLY
US$1,077.19
Eli Lilly
7D
1.2%
1Y
44.6%

LLY: GLP-1 Pricing Deals Will Pressure Obesity Margins Going Forward

Analysts lifted their fair value estimate for Eli Lilly from US$650 to US$770, citing higher assumed profit margins, a slightly higher discount rate, updated expectations for revenue growth and future P/E, and continued Street support related to the obesity franchise, GLP-1 pricing agreements, and pipeline catalysts. Analyst Commentary Recent Street research around Eli Lilly has been dominated by views on obesity drugs, pricing agreements with the U.S. government, and the company’s expanding pipeline.
ABT
US$124.30
Abbott Laboratories
7D
-2.7%
1Y
10.0%

ABT: Exact Sciences Deal And Legal Wins Will Support Future Upside

Narrative Update Overview The updated analyst work on Abbott Laboratories reflects a small increase in the implied fair value to about $144.75. Analysts point to a tighter discount rate, steady growth and margin assumptions, and a blended view of recent price target changes that factor in medical devices momentum, the pending Exact Sciences deal, and reduced legal overhangs.
BSX
US$94.14
Boston Scientific
7D
-3.7%
1Y
-1.6%

BSX: Shares Should Rise On Execution Outperformance And 2026 Normalization Potential

Analysts have trimmed their Boston Scientific fair value estimate slightly to about $125.45 from $125.86, reflecting fine tuning of discount rate, revenue growth, profit margin and future P/E assumptions in light of recent price target resets and largely supportive research commentary across the MedTech sector. Analyst Commentary Recent Street research on Boston Scientific reflects generally constructive views on execution and growth, with some recalibration of targets as models are updated after quarterly results and sector wide resets.
ISRG
US$561.82
Intuitive Surgical
7D
-5.2%
1Y
4.3%

ISRG: Dv5 Platform Rollout And Rising Procedure Volumes Will Drive 2026 Upside

Analysts have lifted their fair value estimate for Intuitive Surgical to US$740 from US$675, reflecting higher expected profit margins and a somewhat lower future P/E multiple. This change is supported by recent target increases tied to the da Vinci 5 rollout, stronger procedure trends and a more constructive view on healthcare into 2026.
ABBV
US$220.75
AbbVie
7D
-1.4%
1Y
25.7%

ABBV: Future Returns Will Depend On Post-Humira Immunology And Pipeline Execution

Analysts have trimmed their AbbVie fair value estimate by about $0.10 per share to roughly $244.56. This reflects a mix of slightly higher risk assumptions, modestly adjusted revenue and margin expectations, and a more balanced set of views after recent downgrades and price target changes that suggest outperformance is already well reflected in the current share price.
AMGN
US$324.30
Amgen
7D
-5.1%
1Y
20.6%

Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52

Jan 07
Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52
ONC
US$351.06
BeOne Medicines
7D
9.6%
1Y
74.7%

ONC: Fair View Balances Blood Cancer Progress With Gastroesophageal Cancer Opportunity

The analyst price target for BeOne Medicines has moved higher to reflect a fair value estimate of $292.03, with analysts pointing to stronger modeled revenue growth and profit margins, supported by recent Street research around Brukinsa performance, Ziihera phase III progress in HER2-positive GEA with Tevimbra, and continued confidence in the CLL and solid tumor pipeline. Analyst Commentary Recent Street research on BeOne Medicines has generally pointed to constructive views on the company’s core franchises, with several price targets adjusted higher alongside updates on Brukinsa, sonrotoclax, and the broader CLL and solid tumor pipeline.
UNH
US$333.93
UnitedHealth Group
7D
-4.3%
1Y
-38.6%

UNH: Medicare Advantage Margin Normalization Will Drive Multi-Year Earnings Recovery Ahead

Analysts have nudged their fair value estimate for UnitedHealth Group slightly higher, with the price target rising by about $4 to around $392 per share as they factor in a stronger multi year earnings recovery driven by disciplined repricing, Medicare Advantage and Medicaid margin normalization, and improving visibility into Optum restructuring benefits. Analyst Commentary Recent Street research on UnitedHealth Group reflects a generally constructive stance, with multiple bullish analysts lifting price targets and emphasizing the durability of the company’s earnings recovery as Medicare Advantage and Medicaid margins normalize and Optum restructuring gains traction.
MDLN
US$42.85
Medline
7D
7.7%
1Y
n/a