Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies1396
  • 7D2.1%
  • 3M12.6%
  • 1Y12.9%
  • YTD2.1%

The Healthcare industry is up 2.1% in the last week, with Regencell Bioscience Holdings up 123%. This takes the industry's 12 month performance to a gain of 13%. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Tue, 09 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.7x2x
Thu, 06 Nov 2025US$6.0tUS$3.2tUS$133.5b25.5x44.8x1.9x
Sat, 04 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.2x1.9x
Mon, 01 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Wed, 30 Jul 2025US$5.6tUS$3.1tUS$125.1b24.2x44.5x1.8x
Fri, 27 Jun 2025US$5.5tUS$3.0tUS$127.5b24.5x43.1x1.8x
Sun, 25 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.7x1.7x
Tue, 22 Apr 2025US$5.3tUS$2.6tUS$97.8b23.7x54x2x
Thu, 20 Mar 2025US$5.7tUS$2.6tUS$75.2b26.9x75.9x2.2x
Sat, 15 Feb 2025US$5.9tUS$2.6tUS$82.1b26.7x71.5x2.2x
Mon, 13 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Wed, 11 Dec 2024US$6.1tUS$2.9tUS$77.5b28.8x78.4x2.1x
Fri, 08 Nov 2024US$6.2tUS$2.9tUS$71.7b28.3x86.6x2.1x
Sun, 06 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Tue, 03 Sep 2024US$6.3tUS$2.8tUS$60.4b32.2x105x2.2x
Thu, 01 Aug 2024US$6.4tUS$2.9tUS$69.4b32.1x91.6x2.2x
Sat, 29 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Mon, 27 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Wed, 24 Apr 2024US$6.0tUS$2.8tUS$84.4b30.9x71.5x2.2x
Fri, 22 Mar 2024US$6.3tUS$2.8tUS$82.1b32.5x76.3x2.3x
Sun, 18 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Tue, 16 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Thu, 14 Dec 2023US$6.0tUS$2.8tUS$91.5b31.7x65.9x2.1x
Sat, 11 Nov 2023US$5.6tUS$2.8tUS$91.0b26.5x62x2x
Mon, 09 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Wed, 06 Sep 2023US$6.0tUS$2.8tUS$98.6b27x61.2x2.2x
Fri, 04 Aug 2023US$6.0tUS$2.8tUS$94.7b29.5x63.2x2.2x
Sun, 02 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Tue, 30 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Thu, 27 Apr 2023US$5.9tUS$2.5tUS$117.2b24.5x50.1x2.4x
Sat, 25 Mar 2023US$5.7tUS$2.5tUS$124.1b23.6x45.7x2.3x
Mon, 20 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.1x2.4x
Wed, 18 Jan 2023US$6.0tUS$2.5tUS$135.9b23x44.4x2.5x
Price to Earnings Ratio

44.4x


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 48.5x 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 Market1.88%
Healthcare2.10%
Healthtech7.82%
Life Sciences4.68%
Medical Equipment3.41%
Biotech2.08%
Healthcare Services1.83%
Pharma0.49%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.8x.
    • Analysts are expecting annual earnings growth of 17.4%, 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
RGC Regencell Bioscience HoldingsUS$45.79122.9%
+US$12.5b		35,894.2%PB4658.7x
MRK MerckUS$110.533.8%
+US$10.1b		11.4%PE14.4x
TMO Thermo Fisher ScientificUS$618.864.4%
+US$9.9b		14.1%PE35.4x
ISRG Intuitive SurgicalUS$586.244.3%
+US$8.6b		7.1%PE75.7x
RVMD Revolution MedicinesUS$118.6450.1%
+US$7.7b		184.0%PB14.4x

Latest News

ISRG
US$586.24
Intuitive Surgical
7D
4.3%
1Y
7.1%

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.
RVMD
US$118.64
Revolution Medicines
7D
50.1%
1Y
184.0%
MRK
US$110.53
Merck
7D
3.8%
1Y
11.4%

MRK: Cidara Flu Deal Will Likely Highlight Overstated Long Term Hopes

Narrative Update The analyst price target for Merck has moved higher to a range of about $105 to $135. Analysts point to sector re-ratings, recent upgrades to Outperform, and confidence in the company’s product pipeline and deal activity as key drivers of their updated views.
JNJ
US$204.39
Johnson & Johnson
7D
-1.4%
1Y
43.9%

JNJ: Ortho Separation And Talc Risks Will Shape Balanced Forward Risk Reward

Analysts have nudged their fair value estimate for Johnson & Johnson slightly higher to about US$211 per share, reflecting updated views on revenue growth, profitability, and future P/E assumptions informed by recent price target increases and supportive research commentary on the company's pipeline and planned ortho separation. Analyst Commentary Recent Street research on Johnson & Johnson points to a mix of optimism around the pipeline, margin profile, and planned ortho separation, alongside ongoing attention to litigation and product risk.
LLY
US$1,063.56
Eli Lilly
7D
-1.6%
1Y
33.0%
ABBV
US$220.08
AbbVie
7D
-4.0%
1Y
25.6%

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.
SYK
US$367.54
Stryker
7D
5.6%
1Y
0.5%

SYK: Orthopedics Strength And Robotics Adoption Will Support Long-Term Upside

Narrative Update: Stryker The analyst price target for Stryker has been adjusted slightly lower to reflect a fair value estimate of about $427.22. Analysts point to mixed but generally solid recent research that highlights compressed forward multiples, updated targets in the $390 to $453 range, and ongoing views of Stryker as a high quality large cap MedTech name, with attractive entry points and healthy procedure and CapEx trends into 2026.
TMO
US$618.86
Thermo Fisher Scientific
7D
4.4%
1Y
14.1%

TMO: Life Science Scale And 2026 Tools Demand Will Support Steady Performance

Analysts have nudged their fair value estimate for Thermo Fisher Scientific higher from about $626 to roughly $642, citing a series of recent price target increases that reflect updated models after Q3 results, expectations for healthier end markets and tools demand into 2026, and the company's scale in life science tools and lab supplies. Analyst Commentary Recent Street research on Thermo Fisher Scientific clusters around a consistent, more constructive view on the company, with several firms lifting their fair value estimates following the latest Q3 update.
AMGN
US$326.10
Amgen
7D
-0.5%
1Y
24.4%

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

Jan 07
Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52
ZBIO
US$16.08
Zenas BioPharma
7D
-53.4%
1Y
98.0%
CAH
US$201.11
Cardinal Health
7D
-2.2%
1Y
65.4%
RGC
US$45.79
Regencell Bioscience Holdings
7D
122.9%
1Y
35,894.2%
DHR
US$238.37
Danaher
7D
3.5%
1Y
1.4%

DHR: Share Repurchases And Diagnostics Resilience Will Support Premium Multiple

Analysts have made a modest upward adjustment to their fair value estimate for Danaher to about US$259 from about US$258, reflecting slightly higher assumed profit margins and P/E, even as they highlight tempered expectations for 2025 and 2026 growth, ongoing uncertainty in China, and questions around how durable diagnostics demand will be. Analyst Commentary Analysts are split on Danaher, with some focusing on the valuation premium and others on the company’s ability to eventually reconnect with its historical growth profile.
UNH
US$343.98
UnitedHealth Group
7D
2.3%
1Y
-33.9%

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.
MDGL
US$514.06
Madrigal Pharmaceuticals
7D
-13.4%
1Y
51.7%

MDGL: Elevated Expectations For Cirrhosis Opportunity Will Face Heightened Competitive Pressures

Madrigal Pharmaceuticals' analyst price target has risen sharply from approximately $312 to $502 per share, as analysts factor in stronger long term profitability and higher penetration assumptions for Rezdiffra across F2-F3 and F4c MASH populations, despite moderating top line growth expectations and a modestly higher discount rate. Analyst Commentary Recent Street research reflects a broadly constructive outlook on Madrigal Pharmaceuticals, with multiple firms lifting price targets in response to stronger than expected Rezdiffra uptake and expanding commercial visibility in both F2 F3 and compensated F4c MASH populations.
MCK
US$816.06
McKesson
7D
-0.9%
1Y
40.3%