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U.S. Healthcare Sector Analysis

UpdatedApr 28, 2026
DataAggregated Company Financials
Companies1398
  • 7D-2.6%
  • 3M-6.6%
  • 1Y7.4%
  • YTD-6.3%

Over the last 7 days, the Healthcare industry has dropped 2.4%, driven by a pullback from Eli Lilly of 5.6%. Meanwhile, UnitedHealth Group actually outperformed within the industry, gaining 9.6% in the last week. This takes the industry's 12 month performance to a gain of 8.0%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 28 Apr 2026US$6.1tUS$3.3tUS$121.4b23.6x50.6x1.9x
Thu, 26 Mar 2026US$6.1tUS$3.3tUS$124.9b22.7x48.6x1.9x
Sat, 21 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.4x2x
Mon, 19 Jan 2026US$6.5tUS$3.2tUS$136.3b27.3x48x2x
Wed, 17 Dec 2025US$6.5tUS$3.2tUS$135.3b26.3x48.1x2x
Fri, 14 Nov 2025US$6.3tUS$3.2tUS$133.4b26x47.2x2x
Sun, 12 Oct 2025US$5.9tUS$3.1tUS$137.9b24.5x42.9x1.9x
Tue, 09 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.7x1.9x
Thu, 07 Aug 2025US$5.5tUS$3.1tUS$134.9b22.8x40.5x1.8x
Sat, 05 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Mon, 02 Jun 2025US$5.4tUS$3.0tUS$127.6b23.1x42.2x1.8x
Wed, 30 Apr 2025US$5.4tUS$2.7tUS$116.9b24.9x46.3x2x
Fri, 28 Mar 2025US$5.7tUS$2.6tUS$81.6b26.3x69.4x2.1x
Sun, 23 Feb 2025US$5.8tUS$2.6tUS$80.5b26.6x72.4x2.2x
Tue, 21 Jan 2025US$5.9tUS$2.9tUS$78.9b27.7x74.2x2x
Thu, 19 Dec 2024US$5.8tUS$2.9tUS$78.1b27.5x74.7x2x
Sat, 16 Nov 2024US$6.1tUS$2.9tUS$76.6b27.8x79.3x2.1x
Mon, 14 Oct 2024US$6.2tUS$2.8tUS$60.0b29.8x104x2.2x
Wed, 11 Sep 2024US$6.2tUS$2.8tUS$60.4b30.1x103.2x2.2x
Fri, 09 Aug 2024US$6.2tUS$2.9tUS$59.6b30.3x103.4x2.1x
Sun, 07 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Tue, 04 Jun 2024US$6.1tUS$2.8tUS$64.0b30.5x95.2x2.2x
Thu, 02 May 2024US$6.0tUS$2.8tUS$71.2b31.2x84.3x2.1x
Sat, 30 Mar 2024US$6.4tUS$2.8tUS$82.8b32.4x76.8x2.3x
Mon, 26 Feb 2024US$6.3tUS$2.8tUS$85.5b31.1x74x2.3x
Wed, 24 Jan 2024US$6.4tUS$2.8tUS$90.1b32.7x70.5x2.3x
Fri, 22 Dec 2023US$6.0tUS$2.8tUS$91.5b32.3x66.1x2.1x
Sun, 19 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Tue, 17 Oct 2023US$5.9tUS$2.8tUS$98.9b26.4x59.7x2.1x
Thu, 14 Sep 2023US$6.0tUS$2.8tUS$98.7b27.8x61.3x2.2x
Sat, 12 Aug 2023US$6.2tUS$2.8tUS$99.1b28.6x62.6x2.2x
Mon, 10 Jul 2023US$5.9tUS$2.7tUS$110.3b26x53.1x2.1x
Wed, 07 Jun 2023US$5.9tUS$2.7tUS$110.4b25.4x53.8x2.2x
Fri, 05 May 2023US$6.0tUS$2.7tUS$111.9b24.4x53.4x2.2x
Price to Earnings Ratio

53.4x


Total Market Cap: US$6.0tTotal Earnings: US$111.9bTotal Revenue: US$2.7tTotal 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 50.7x 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 2.7% per year over the last three years.
  • Revenues for these companies have grown 6.3% 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 Market0.72%
Healthcare-2.64%
Healthcare Services4.73%
Medical Equipment-2.18%
Biotech-3.11%
Healthtech-3.40%
Pharma-3.97%
Life Sciences-8.11%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.3x.
    • Analysts are expecting annual earnings growth of 15.7%, 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 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 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
UNH UnitedHealth GroupUS$354.699.6%
+US$28.5b		-15.6%PE26.7x
ELV Elevance HealthUS$356.1311.5%
+US$7.2b		-13.9%PE14.8x
CNC CenteneUS$43.5013.5%
+US$2.6b		-26.9%PS0.1x
CVS CVS HealthUS$78.362.3%
+US$2.3b		20.7%PE56.8x
HUM HumanaUS$223.626.3%
+US$1.6b		-15.0%PE22.6x

Latest News

LLY
US$868.27
Eli Lilly
7D
-5.6%
1Y
-1.0%
MRK
US$110.23
Merck
7D
-5.9%
1Y
32.5%

Merck: Bullish Setup Into Q1 Earnings

Apr 27
UNH
US$354.69
UnitedHealth Group
7D
9.6%
1Y
-15.6%

UnitedHealth: Solid Renewal Cadence With 2027 Tailwinds

Apr 27
HCA
US$445.77
HCA Healthcare
7D
-6.8%
1Y
34.3%
WST
US$302.20
West Pharmaceutical Services
7D
8.7%
1Y
39.8%
JNJ
US$225.34
Johnson & Johnson
7D
-2.3%
1Y
45.1%
HUM
US$223.62
Humana
7D
6.3%
1Y
-15.0%
TMO
US$468.04
Thermo Fisher Scientific
7D
-11.0%
1Y
11.1%
MOH
US$179.22
Molina Healthcare
7D
19.4%
1Y
-44.0%
ELV
US$356.13
Elevance Health
7D
11.5%
1Y
-13.9%
ABBV
US$197.38
AbbVie
7D
-3.1%
1Y
2.6%

ABBV: Future Returns Will Rely On Immunology Expansion And Operating Leverage Execution

Analysts made a small upward adjustment to AbbVie’s fair value estimate to about $249. The modest change reflects a mix of slightly higher assumed discount rates and future P/E multiples, alongside recent shifts in Street price targets, including both raises and trims from firms such as Piper Sandler, Guggenheim, Cantor Fitzgerald, Evercore ISI, Citi and UBS, as well as fresh bullish initiations from Canaccord, RBC Capital and Barclays.
GILD
US$127.75
Gilead Sciences
7D
-4.2%
1Y
22.6%
ISRG
US$470.99
Intuitive Surgical
7D
1.2%
1Y
-8.4%
CVS
US$78.36
CVS Health
7D
2.3%
1Y
20.7%

CVS: Medicare Advantage Turnaround And FTC Settlement Will Support Future Earnings

CVS Health's analyst price targets have edged higher by a few dollars, as analysts factor in slightly stronger revenue and margin assumptions, a modestly lower discount rate, and a somewhat lower future P/E multiple in light of recent research that highlights Medicare Advantage exposure, potential earnings stability in pharmacy, and reduced regulatory uncertainty tied to a possible FTC settlement. Analyst Commentary Recent research on CVS Health reflects a mix of cautious optimism and ongoing concern, with analysts adjusting price targets by only a few dollars in either direction as they reassess earnings quality, regulatory risks, and Medicare Advantage exposure.
DHR
US$180.62
Danaher
7D
-7.6%
1Y
-7.8%

Danaher Q1 2026 Earnings Update

Apr 22
CNC
US$43.50
Centene
7D
13.5%
1Y
-26.9%

CNC: Medicaid Margins In 2026 Will Underpin Future Earnings Power

Centene's updated analyst price targets show only a modest reduction in implied fair value to about $60.51, as analysts factor in slightly better revenue growth and margins while tempering expectations with lower assumed P/E multiples and continued concern about margin pressure and exchange and Medicaid visibility. Analyst Commentary Recent research on Centene points to a mixed backdrop, but with a clear group of bullish analysts highlighting valuation support, execution on margins, and potential growth from policy and rate decisions.