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U.S. Healthcare Sector Analysis

UpdatedAug 16, 2026
DataAggregated Company Financials
Companies1379
  • 7D0.8%
  • 3M15.9%
  • 1Y25.3%
  • YTD8.9%

Last week, the Healthcare industry hasn't moved much but Merck is up 5.6% in that time. As for the the longer term, the industry is up 25% over the past 12 months. 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, 16 Aug 2026US$7.1tUS$3.4tUS$115.7b25.8x61.3x2.1x
Tue, 14 Jul 2026US$6.9tUS$3.3tUS$122.0b25x56.5x2.1x
Thu, 11 Jun 2026US$6.5tUS$3.3tUS$122.2b22.7x53.3x2x
Sat, 09 May 2026US$6.2tUS$3.3tUS$123.8b22.9x50.2x1.9x
Mon, 06 Apr 2026US$6.2tUS$3.3tUS$127.9b22.2x48.4x1.9x
Wed, 04 Mar 2026US$6.6tUS$3.3tUS$126.5b25.3x52x2x
Fri, 30 Jan 2026US$6.5tUS$3.2tUS$126.3b27.2x51.4x2x
Sun, 28 Dec 2025US$6.6tUS$3.2tUS$135.2b26.5x48.5x2.1x
Tue, 25 Nov 2025US$6.4tUS$3.2tUS$133.7b25.9x47.5x2x
Thu, 23 Oct 2025US$6.0tUS$3.1tUS$140.7b25.3x43x1.9x
Sat, 20 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.6x1.8x
Mon, 18 Aug 2025US$5.7tUS$3.1tUS$136.9b23.2x41.3x1.8x
Wed, 16 Jul 2025US$5.5tUS$3.0tUS$127.9b23.4x43.4x1.8x
Fri, 13 Jun 2025US$5.6tUS$3.0tUS$127.2b24.1x43.6x1.8x
Sun, 11 May 2025US$5.4tUS$3.0tUS$126.6b24.2x42.4x1.8x
Tue, 08 Apr 2025US$5.2tUS$2.6tUS$82.2b24.9x63.5x2x
Thu, 06 Mar 2025US$5.8tUS$2.6tUS$79.2b27.5x73.3x2.2x
Sat, 01 Feb 2025US$6.2tUS$2.9tUS$85.1b27.8x72.5x2.1x
Mon, 30 Dec 2024US$5.8tUS$2.9tUS$78.3b26.8x74.4x2x
Wed, 27 Nov 2024US$6.1tUS$2.9tUS$77.1b28.4x79.1x2.1x
Fri, 25 Oct 2024US$6.1tUS$2.8tUS$58.7b29.5x104.2x2.2x
Sun, 22 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Tue, 20 Aug 2024US$6.2tUS$2.8tUS$56.0b32.1x109.9x2.2x
Thu, 18 Jul 2024US$6.4tUS$2.8tUS$61.0b31.8x105.1x2.3x
Sat, 15 Jun 2024US$6.2tUS$2.8tUS$62.4b29.9x99.4x2.2x
Mon, 13 May 2024US$6.1tUS$2.8tUS$64.0b30.6x95.5x2.2x
Wed, 10 Apr 2024US$6.1tUS$2.8tUS$85.3b32.7x72x2.2x
Fri, 08 Mar 2024US$6.3tUS$2.8tUS$83.1b32.2x75.9x2.3x
Sun, 04 Feb 2024US$6.4tUS$2.8tUS$76.5b31.9x84.1x2.3x
Tue, 02 Jan 2024US$6.2tUS$2.8tUS$91.5b32.8x68.1x2.2x
Thu, 30 Nov 2023US$5.8tUS$2.8tUS$91.4b28.2x63.7x2.1x
Sat, 28 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Mon, 25 Sep 2023US$5.9tUS$2.8tUS$98.6b27.7x60x2.1x
Wed, 23 Aug 2023US$6.1tUS$2.8tUS$99.0b28.1x61.6x2.2x
Price to Earnings Ratio

61.6x


Total Market Cap: US$6.1tTotal Earnings: US$99.0bTotal 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 61.3x 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 5.3% 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 Market0.63%
Healthcare0.82%
Healthtech4.69%
Medical Equipment2.68%
Pharma0.61%
Biotech0.54%
Life Sciences0.16%
Healthcare Services-0.18%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.6x.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings growth of 9.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 27% over the next 5 years.
  • However this is lower than its past earnings growth rate of 65% 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
MRK MerckUS$135.845.6%
+US$17.9b		61.3%PE105.6x
GILD Gilead SciencesUS$138.363.9%
+US$6.4b		16.9%PS5.6x
ABBV AbbVieUS$249.461.4%
+US$6.0b		20.7%PE70.3x
ABT Abbott LaboratoriesUS$111.253.2%
+US$6.0b		-15.6%PE35.6x
ISRG Intuitive SurgicalUS$394.514.1%
+US$5.5b		-17.9%PE44.4x

Latest News

ABBV
US$249.46
AbbVie
7D
1.4%
1Y
20.7%
GILD
US$138.36
Gilead Sciences
7D
3.9%
1Y
16.9%
JNJ
US$260.35
Johnson & Johnson
7D
0.4%
1Y
47.4%
Seeking Alpha • 14h

Johnson & Johnson: Quality, But It Doesn't Deserve A Mid-20s Multiple Right Now

Summary Johnson & Johnson has delivered a 28% total return YTD, outperforming SPY and XLV, but now trades at a premium valuation. Despite solid Q2 results and raised FY 2026 guidance, JNJ's stock is deemed fully priced, warranting a reiterated hold rating. Key risks include MedTech growth softness, ongoing litigation, and macro uncertainties, while Pharma momentum drives guidance upgrades. Technically, JNJ remains in an uptrend, but negative RSI divergence and valuation suggest potential near-term consolidation. Read the full article on Seeking Alpha
UNH
US$401.73
UnitedHealth Group
7D
-1.3%
1Y
32.1%
BSX
US$51.83
Boston Scientific
7D
5.1%
1Y
-49.8%
BMY
US$63.83
Bristol-Myers Squibb
7D
-1.4%
1Y
31.8%
Narrative Update • Aug 14

BMY: 2026 Pipeline And M&A Noise Will Not Mitigate Patent Cliff

Analysts have lifted their blended price targets for Bristol-Myers Squibb toward the $70 to $75 range, citing improving sentiment around growth products, recent Q2 earnings updates, and ongoing debate around potential M&A interest as key drivers behind the reassessment of fair value from about $45.67 to roughly $49.02 per share. Analyst Commentary Recent research coverage on Bristol-Myers Squibb highlights a mix of improving sentiment and lingering concerns.
TMO
US$588.29
Thermo Fisher Scientific
7D
-1.0%
1Y
20.3%
NTRA
US$309.93
Natera
7D
-3.8%
1Y
90.1%
LLY
US$1,180.16
Eli Lilly
7D
-0.5%
1Y
68.3%
IDXX
US$550.96
IDEXX Laboratories
7D
-6.1%
1Y
-15.3%
ISRG
US$394.51
Intuitive Surgical
7D
4.1%
1Y
-17.9%
SION
US$6.46
Sionna Therapeutics
7D
-87.3%
1Y
-69.0%
Seeking Alpha • Aug 12

Sionna's SION-719 Failure Changes Everything (Rating Downgrade)

Summary Sionna Therapeutics is downgraded to Hold after SION-719’s Phase 2a failure, shifting focus to the riskier SION-451 program. SION-719’s lack of efficacy as a Trikafta add-on raises concerns about the NBD1 stabilisation approach’s clinical translation and increases execution risk. SION maintains a strong cash position with $268 million, trading at negative enterprise value, but faces a capital preservation imperative and uncertain pipeline value. Investor attention now centers on whether SION-451 + 2222 can demonstrate efficacy, with management pausing Phase II plans pending a full post-mortem on 719’s failure. Read the full article on Seeking Alpha
MRK
US$135.84
Merck
7D
5.6%
1Y
61.3%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
ABT
US$111.25
Abbott Laboratories
7D
3.2%
1Y
-15.6%
HCA
US$404.68
HCA Healthcare
7D
-2.1%
1Y
2.2%
Narrative Update • Aug 11

HCA: Cash Generation And Project Pipeline Will Support Future Upside Potential

The updated analyst price target for HCA Healthcare points lower toward a fair value of about $555 from roughly $628, as analysts factor in slower projected revenue growth, slightly softer profit margins, and a reduced future P/E assumption following recent guidance updates and mixed volume trends. Analyst Commentary Recent Street research on HCA Healthcare shows a split view, but bullish analysts still see room for upside based on cash generation, project pipeline, and the potential for steadier core volumes over time.
MDT
US$91.27
Medtronic
7D
4.7%
1Y
-1.9%
Seeking Alpha • Aug 10

Medtronic: Buy This Undervalued Dividend Aristocrat Before The Market Catches On

Summary Medtronic is rated 'Buy' for its compelling combination of income, growth, and value. MDT's growth is led by cardiac ablation with 124% U.S. segment growth and rapid expansion of the Hugo robotic surgery platform. Management guides for 11.75% organic revenue growth in Q1 2027, with CAS expected to outpace the market and Symplicity renal denervation gaining traction. Read the full article on Seeking Alpha