Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.S. Healthcare Sector Analysis

UpdatedNov 20, 2024
DataAggregated Company Financials
Companies1398
  • 7D-4.8%
  • 3M-8.1%
  • 1Y9.6%
  • YTD1.3%

Over the last 7 days, the Healthcare industry has dropped 4.8%, driven by a pullback from Eli Lilly of 10%. In the past year, the industry has gained 9.6%. Earnings are forecast to grow by 22% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 20 Nov 2024US$5.9tUS$2.9tUS$76.7b27.1x77.3x2x
Fri, 18 Oct 2024US$6.2tUS$2.8tUS$58.6b31.2x106.6x2.2x
Sun, 15 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Tue, 13 Aug 2024US$6.0tUS$2.8tUS$55.3b30.1x108.9x2.1x
Thu, 11 Jul 2024US$6.2tUS$2.8tUS$62.2b30x99x2.2x
Sat, 08 Jun 2024US$6.2tUS$2.8tUS$63.7b30x97.5x2.2x
Mon, 06 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Wed, 03 Apr 2024US$6.3tUS$2.8tUS$84.0b32.5x74.9x2.3x
Fri, 01 Mar 2024US$6.3tUS$2.8tUS$84.2b30.9x74.6x2.3x
Sun, 28 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Tue, 26 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x67.4x2.2x
Thu, 23 Nov 2023US$5.8tUS$2.8tUS$91.2b28x63.5x2.1x
Sat, 21 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Mon, 18 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Wed, 16 Aug 2023US$6.2tUS$2.8tUS$99.4b29x62.3x2.2x
Fri, 14 Jul 2023US$5.9tUS$2.7tUS$110.5b26.3x53.4x2.2x
Sun, 11 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 09 May 2023US$6.0tUS$2.7tUS$111.2b24.9x54.2x2.2x
Thu, 06 Apr 2023US$5.9tUS$2.5tUS$121.8b24.2x48.4x2.4x
Sat, 04 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Mon, 30 Jan 2023US$6.0tUS$2.5tUS$133.9b23.8x44.6x2.4x
Wed, 28 Dec 2022US$6.0tUS$2.4tUS$135.7b22.9x44.1x2.4x
Fri, 25 Nov 2022US$6.0tUS$2.4tUS$133.7b24x44.9x2.5x
Sun, 23 Oct 2022US$5.7tUS$2.4tUS$156.7b21.6x36.1x2.3x
Tue, 20 Sep 2022US$5.7tUS$2.4tUS$156.2b22.2x36.7x2.4x
Thu, 18 Aug 2022US$6.1tUS$2.4tUS$157.1b24x38.6x2.5x
Sat, 16 Jul 2022US$5.8tUS$2.6tUS$164.6b24.9x35.3x2.3x
Mon, 13 Jun 2022US$5.6tUS$2.6tUS$165.4b24.2x33.9x2.2x
Wed, 11 May 2022US$5.6tUS$2.6tUS$166.3b24.9x33.9x2.2x
Fri, 08 Apr 2022US$6.7tUS$2.5tUS$174.1b29.2x38.3x2.7x
Sun, 06 Mar 2022US$6.2tUS$2.5tUS$171.1b28.5x36.5x2.5x
Tue, 01 Feb 2022US$6.3tUS$2.4tUS$151.0b30.6x41.6x2.6x
Thu, 30 Dec 2021US$6.9tUS$2.4tUS$145.7b32.6x47.5x2.9x
Sat, 27 Nov 2021US$6.7tUS$2.4tUS$146.6b31.7x45.4x2.8x
Price to Earnings Ratio

45.4x


Total Market Cap: US$6.7tTotal Earnings: US$146.6bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 59.4x202220232024
Current Industry PE
  • Investors are optimistic on the American Healthcare industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 77.3x which is higher than its 3-year average PE of 59.4x.
  • The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have declined 19% per year over the last three years.
  • Meanwhile revenues for these companies have grown 6.8% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare sector?

US Market-1.19%
Healthcare-4.83%
Medical Equipment-0.82%
Healthcare Services-4.61%
Pharma-5.29%
Life Sciences-7.19%
Biotech-7.46%
Healthtech-10.09%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 56.2x.
    • Analysts are expecting annual earnings growth of 18.4%, which is higher than its past year's earnings decline of 4.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Healthtech industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
ABT Abbott LaboratoriesUS$117.131.2%
+US$2.4b		14.1%PE35.4x
BSX Boston ScientificUS$90.331.8%
+US$2.3b		63.0%PE74.3x
EW Edwards LifesciencesUS$70.205.5%
+US$2.2b		4.7%PE26.4x
CVS CVS HealthUS$55.772.8%
+US$1.9b		-19.3%PE14x
SGEN SeagenUS$228.744.5%
+US$1.8b		76.5%PS18.8x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

PFE

US$25.10

Pfizer

7D

-6.1%

1Y

-17.2%

LLY

US$729.73

Eli Lilly

7D

-10.1%

1Y

22.6%

HSIC

US$74.84

Henry Schein

7D

10.5%

1Y

7.8%

CVS

US$55.77

CVS Health

7D

2.8%

1Y

-19.3%

ABBV

US$166.57

AbbVie

7D

-2.2%

1Y

20.3%

AbbVie's (NYSE:ABBV) Dividend Will Be Increased To $1.64

Nov 19
AbbVie's (NYSE:ABBV) Dividend Will Be Increased To $1.64

AMGN

US$279.95

Amgen

7D

-7.1%

1Y

5.8%

Amgen Sells Off: Keep Calm And Buy The Dip

Nov 18

TMO

US$509.12

Thermo Fisher Scientific

7D

-6.0%

1Y

4.4%

BSX

US$90.33

Boston Scientific

7D

1.8%

1Y

63.0%

ISRG

US$538.82

Intuitive Surgical

7D

0.4%

1Y

70.6%

Intuitive Surgical: One Of The Best Business Models In The World, But Not At This Price

Nov 14

EW

US$70.20

Edwards Lifesciences

7D

5.5%

1Y

4.7%

Estimating The Intrinsic Value Of Edwards Lifesciences Corporation (NYSE:EW)

Nov 11
Estimating The Intrinsic Value Of Edwards Lifesciences Corporation (NYSE:EW)

VRTX

US$448.01

Vertex Pharmaceuticals

7D

-9.4%

1Y

26.8%

UNH

US$577.00

UnitedHealth Group

7D

-4.8%

1Y

6.1%

DXCM

US$74.88

DexCom

7D

3.2%

1Y

-32.4%

Are Investors Undervaluing DexCom, Inc. (NASDAQ:DXCM) By 44%?

Nov 08
Are Investors Undervaluing DexCom, Inc. (NASDAQ:DXCM) By 44%?

ABT

US$117.13

Abbott Laboratories

7D

1.2%

1Y

14.1%

Investors Will Want Abbott Laboratories' (NYSE:ABT) Growth In ROCE To Persist

Oct 31
Investors Will Want Abbott Laboratories' (NYSE:ABT) Growth In ROCE To Persist

DHR

US$230.84

Danaher

7D

-4.4%

1Y

4.3%

Understanding Danaher's Cautiousness

Oct 25

SGEN

US$228.74

Seagen

7D

4.5%

1Y

76.5%