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

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 51.5x 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.

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

Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.4x. Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings growth of 5.2% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 04 Jun 2026	US$6.3t	US$3.3t	US$122.4b	22.7x	51.5x	1.9x
Sat, 02 May 2026	US$6.2t	US$3.3t	US$118.0b	23.6x	52.5x	1.9x
Mon, 30 Mar 2026	US$6.0t	US$3.3t	US$125.9b	21.8x	47.5x	1.8x
Wed, 25 Feb 2026	US$6.6t	US$3.3t	US$127.8b	26.6x	51.8x	2x
Fri, 23 Jan 2026	US$6.7t	US$3.2t	US$130.5b	27.9x	51x	2.1x
Sun, 21 Dec 2025	US$6.5t	US$3.2t	US$135.2b	26.2x	48x	2x
Tue, 18 Nov 2025	US$6.2t	US$3.2t	US$133.4b	25.6x	46.8x	2x
Thu, 16 Oct 2025	US$5.9t	US$3.1t	US$140.4b	24.5x	42.3x	1.9x
Sat, 13 Sep 2025	US$5.8t	US$3.1t	US$137.6b	22.7x	42.1x	1.9x
Mon, 11 Aug 2025	US$5.4t	US$3.1t	US$139.7b	23.3x	38.5x	1.7x
Wed, 09 Jul 2025	US$5.5t	US$3.0t	US$127.9b	24.2x	42.9x	1.8x
Fri, 06 Jun 2025	US$5.4t	US$3.0t	US$127.2b	23.4x	42.8x	1.8x
Sun, 04 May 2025	US$5.6t	US$2.7t	US$126.2b	24.8x	44.1x	2x
Tue, 01 Apr 2025	US$5.6t	US$2.6t	US$81.9b	26.3x	69x	2.1x
Thu, 27 Feb 2025	US$5.9t	US$2.6t	US$79.6b	25.5x	73.7x	2.2x
Sat, 25 Jan 2025	US$6.0t	US$2.9t	US$85.5b	27.9x	70.7x	2.1x
Mon, 23 Dec 2024	US$5.8t	US$2.9t	US$78.2b	27.7x	73.5x	2x
Wed, 20 Nov 2024	US$5.9t	US$2.9t	US$76.7b	27.1x	77.3x	2x
Fri, 18 Oct 2024	US$6.2t	US$2.8t	US$58.6b	31.2x	106.6x	2.2x
Sun, 15 Sep 2024	US$6.3t	US$2.8t	US$60.0b	30.6x	105.4x	2.2x
Tue, 13 Aug 2024	US$6.0t	US$2.8t	US$55.3b	30.1x	108.9x	2.1x
Thu, 11 Jul 2024	US$6.2t	US$2.8t	US$62.2b	30x	99x	2.2x
Sat, 08 Jun 2024	US$6.2t	US$2.8t	US$63.7b	30x	97.5x	2.2x
Mon, 06 May 2024	US$6.0t	US$2.8t	US$65.2b	31.1x	92.6x	2.1x
Wed, 03 Apr 2024	US$6.3t	US$2.8t	US$84.0b	32.5x	74.9x	2.3x
Fri, 01 Mar 2024	US$6.3t	US$2.8t	US$84.2b	30.9x	74.6x	2.3x
Sun, 28 Jan 2024	US$6.3t	US$2.8t	US$90.7b	32x	69.7x	2.2x
Tue, 26 Dec 2023	US$6.2t	US$2.8t	US$91.5b	33.1x	67.4x	2.2x
Thu, 23 Nov 2023	US$5.8t	US$2.8t	US$91.2b	28x	63.5x	2.1x
Sat, 21 Oct 2023	US$5.7t	US$2.8t	US$99.6b	25.6x	57.7x	2.1x
Mon, 18 Sep 2023	US$6.0t	US$2.8t	US$98.6b	29.3x	61x	2.2x
Wed, 16 Aug 2023	US$6.2t	US$2.8t	US$99.4b	29x	62.3x	2.2x
Fri, 14 Jul 2023	US$5.9t	US$2.7t	US$110.5b	26.3x	53.4x	2.2x
Sun, 11 Jun 2023	US$6.0t	US$2.7t	US$110.4b	25.2x	53.9x	2.2x


US Market	1.22%
Healthcare	-1.83%
Healthtech	11.90%
Life Sciences	7.16%
Healthcare Services	-0.31%
Pharma	-2.02%
Biotech	-4.11%
Medical Equipment	-5.00%

Company	Last Price	7D	1Y	Valuation
TMO Thermo Fisher Scientific	US$482.08	7.6% +US$12.6b	20.5%	PE26.2x
A Agilent Technologies	US$135.05	17.4% +US$5.6b	19.8%	PE27x
ABBV AbbVie	US$215.40	1.1% +US$4.0b	15.0%	PE105.9x
VEEV Veeva Systems	US$182.94	15.4% +US$4.0b	-35.8%	PE32.8x
WAT Waters	US$371.93	9.8% +US$3.3b	6.5%	PE81.2x

Announcement • 12h

Johnson & Johnson Presents New Data Reinforcing the Role of Nipocalimab in Lowering the Autoantibodies Driving Sjögren's Disease

Johnson & Johnson announced new biomarker exploratory analyses from the Phase 2 DAHLIAS study evaluating nipocalimab in adults with moderate-to-severe Sjögren's disease (SjD) showing that participants with elevated autoantibody and immunoglobulin G (IgG) levels, who are often those who experience more substantial disease burden, showed greater clinical response rates. Nipocalimab, an immunoselective neonatal Fc receptor (FcRn) blocker, is designed to target and reduce pathogenic immunoglobulin G (IgG) autoantibodies associated with Sjögren's disease while preserving immune function. New exploratory analysis of Phase 2 study data shows a strong correlation between autoantibody levels and even greater clinical response rates of participants in the nipocalimab treatment group. Previously reported data from the Phase 2 study showed nipocalimab reduced Sjögren's disease activity and severity, with potential to address systemic manifestations and the most burdensome patient-reported symptoms including dryness, fatigue and pain. Nipocalimab is the only FcRn blocker granted both Breakthrough Therapy Designation and Fast Track Designation by the U.S. FDA for the treatment of adults with moderate-to-severe Sjögren's disease. Clinical improvements were observed across all patients, with the greatest responses observed in participants with elevated known disease-driving autoantibodies and IgG levels – factors associated with more severe SjD activity and outcomes. Previously reported positive Phase 2 study results demonstrated statistically significant improvement in ClinESSDAI scores with nipocalimab versus placebo. In the current analysis, patients in the autoantibody-high subgroup treated with nipocalimab achieved higher response rates than observed in the overall participant population (62.5% versus 51.9%). These data support the continued investigation of nipocalimab as a potential immunoselective approach for systemic SjD management in the ongoing Phase 3 DAFFODIL study. These findings further support the underlying mechanism of action of nipocalimab as a targeted, immunoselective approach designed to reduce pathogenic IgG autoantibodies associated with SjD disease activity while preserving broader immune function. Nipocalimab is not FDA approved for the treatment of SjD. Subgroup included patients with moderate-to-severe SjD who had the highest baseline levels of three disease-associated autoantibodies – anti-Ro60, anti-Ro52 and anti-La – measured in the study population. ClinESSDAI is an endpoint specific to SjD and is a composite scale that assesses organ disease activity across 11 organ system domains [cutaneous, pulmonary, renal, articular, muscular, peripheral nervous system (PNS), central nervous system (CNS), hematological, glandular, constitutional, lymphadenopathy and lymphoma; a higher score indicates greater symptom severity. DAHLIAS (NCT04968912) is a Phase 2 multicenter, randomized, placebo-controlled double-blind, dose-ranging study to evaluate the effects of nipocalimab in participants with moderately-to-severely active primary Sjögren's disease (SjD) who were seropositive for anti-Ro60 and/or anti-Ro52 immunoglobulin G (IgG) antibodies. 163 adults aged 18-75 were randomized 1:1:1 to receive intravenous nipocalimab at 5 or 15 mg/kg, or placebo every 2 weeks through Week 22 and received protocol-permitted background standard of care. Safety assessments were conducted through Week 30. The primary endpoint was change in baseline in the ClinESSDAI (Clinical European League Against Rheumatism Sjögren's Syndrome Disease Activity Index) Score at Week 24. Sjögren's disease (SjD) is one of the most prevalent autoantibody-driven diseases for which no therapies are currently approved that treat the underlying and systemic nature of the disease. It is a chronic autoimmune disease that is estimated to impact approximately four million people worldwide and is nine times more common in women than men. SjD is characterized by autoantibody production, chronic inflammation and lymphocytic infiltration of exocrine glands. Most patients are affected by mucosal dryness (eyes, mouth, vagina), joint pain and fatigue. More than 50% of SjD patients have a moderate-to-severe form of the condition, and disease burden can be as high as that of rheumatoid arthritis or systemic lupus erythematosus (SLE). It is usually associated with impaired quality of life, and in up to approximately half of patients, a loss of functional capacity that can result in an inability to work due to a disability. Nipocalimab is an investigational immunoselective treatment designed to target, bind with high affinity and block neonatal Fc receptor (FcRn), reducing circulating immunoglobulin (IgG) antibodies that drive disease while also preserving key immune functions. Nipocalimab is being investigated across three key segments in the autoantibody space including Rheumatologic diseases, Rare Autoantibody diseases and Maternal Fetal diseases mediated by maternal alloantibodies in which blockade of IgG binding to FcRn in the placenta is also believed to limit transplacental transfer of maternal alloantibodies to the fetus. The U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) have granted several key designations to nipocalimab including: EU EMA Orphan medicinal product designation for hemolytic disease of the fetus and newborn (HDFN) in October 2019 and fetal and neonatal alloimmune thrombocytopenia (FNAIT) in April 2025; U.S. FDA Fast Track designation in HDFN and warm autoimmune hemolytic anemia (wAIHA) in July 2019, generalized myasthenia gravis (gMG) in December 2021, FNAIT in March 2024, Sjögren's disease (SjD) in March 2025 and systemic lupus erythematosus (SLE) in January 2026; U.S. FDA Orphan drug status for wAIHA in December 2019, HDFN in June 2020, gMG in February 2021, chronic inflammatory demyelinating polyneuropathy (CIDP) in October 2021 and FNAIT in December 2023; U.S. FDA Breakthrough Therapy designation for HDFN in February 2024 and for SjD in November 2024; U.S. FDA granted Priority Review in gMG in Fourth Quarter 2024 and wAIHA in Second Quarter 2026.

Announcement • 12h

Gilead Sciences Announces Statistically Significant Composite ALP Normalization With Livdelzi In Phase 3 IDEAL Trial In Primary Biliary Cholangitis

Gilead Sciences, Inc. announced positive results from a Phase 3 study in people with primary biliary cholangitis (PBC), showing that treatment with Livdelzi (seladelpar) led to significantly more patients achieving normalization of alkaline phosphatase (ALP), a key liver marker of disease progression, compared with placebo after 52 weeks. The primary endpoint was defined as a composite of ALP = 1.0× upper limit of normal (ULN) and a = 15% decrease from baseline. These findings were observed in people with inadequately controlled disease, defined as having ALP levels above the ULN and below 1.67×ULN, with an incomplete response or intolerance to ursodeoxycholic acid (UDCA). The safety profile of seladelpar observed in IDEAL was consistent with previously reported Livdelzi studies, with no new safety concerns identified. These results extend the evidence base for Livdelzi to a broader population of people living with PBC and support ALP normalization as an achievable therapeutic goal in patients with ALP between 1 to 1.67xULN. In PBC, ALP is a key disease marker associated with disease activity and long-term outcomes. ALP levels above normal, including in the 1.0 to 1.67×ULN range, are associated with increased risk of progression to liver transplant or death compared with normalized ALP levels. Full data will be presented at an upcoming medical congress, and Gilead will engage with global regulatory authorities to discuss these results. The IDEAL study is a Phase 3, double-blind, placebo-controlled trial designed to evaluate Livdelzi in adults living with primary biliary cholangitis (PBC) who have inadequately controlled disease, defined as having alkaline phosphatase (ALP) levels above normal but less than 1.67× ULN despite treatment with ursodeoxycholic acid (UDCA) or with UDCA intolerance. Its primary objective is to evaluate the effect of Livdelzi treatment at Week 52 compared to placebo, assessing rates of ALP normalization, defined as a composite of ALP = 1.0× upper limit of normal (ULN) and = 15% decrease from baseline in PBC participants with an ALP value greater than ULN but less than 1.67× ULN. A composite was used for the primary endpoint to ensure rigorous evaluation of ALP normalization over time. The study enrolled 96 adults aged 18–75 years. Livdelzi (seladelpar) is an oral PPAR-delta agonist, or delpar, for the treatment of primary biliary cholangitis (PBC). PPAR-delta is known to regulate key metabolic and liver disease pathways. Preclinical and clinical data indicate that Livdelzi has anticholestatic, anti-inflammatory, antipruritic, and antifibrotic effects. Clinical trial data have shown that Livdelzi can support meaningful improvements in key markers of disease activity, including biochemical response and alkaline phosphatase (ALP) normalization, with durable effects observed over long-term follow-up in multiple studies. Livdelzi has the potential to help address ongoing unmet needs for people living with PBC, including those who remain inadequately controlled on existing therapies. Pruritus is a common symptom of PBC that can significantly impair quality of life, and prior studies have demonstrated improvements in pruritus with Livdelzi compared with placebo. Livdelzi is indicated for the treatment of primary biliary cholangitis (PBC) in combination with ursodeoxycholic acid (UDCA) in adults who have had an inadequate response to UDCA, or as monotherapy in patients unable to tolerate UDCA. The FDA approved this indication under accelerated approval based on a reduction of alkaline phosphatase (ALP). Improvement in survival or prevention of liver decompensation events have not been demonstrated. Continued approval for this indication may be contingent upon verification and description of clinical benefit in confirmatory trial(s). Use of Livdelzi is not recommended in patients who have or develop decompensated cirrhosis (e.g., ascites, variceal bleeding, hepatic encephalopathy). Fractures occurred in 4% of LIVDELZI-treated patients compared to no placebo-treated patients. Consider the risk of fracture in the care of patients treated with LIVDELZI and monitor bone health according to current standards of care. LIVDELZI has been associated with dose-related increases in serum transaminase (AST and ALT) levels > 3 x ULN in patients receiving 50 mg and 200 mg once daily (5x and 20x higher than the recommended dosage of 10 mg once daily). Perform baseline clinical and laboratory testing when starting LIVDELZI and monitor thereafter according to routine patient management. Interrupt treatment if the liver tests (ALT, AST, total bilirubin, and/or ALP) worsen, or if the patient develops signs and symptoms of clinical hepatitis (e.g., jaundice, right upper quadrant pain, eosinophilia). Consider permanent discontinuation if liver tests worsen after restarting LIVDELZI. Avoid use of LIVDELZI in patients with complete biliary obstruction. If biliary obstruction is suspected, interrupt LIVDELZI and treat as clinically indicated. The most common adverse reactions (=5%) with LIVDELZI were headache (8%), abdominal pain (7%), nausea (6%), abdominal distension (6%), and dizziness (5%). OAT3 Inhibitors and Strong CYP2C9 Inhibitors: Avoid coadministration with LIVDELZI due to increased LIVDELZI exposure. Rifampin: Monitor biochemical response (e.g., ALP and bilirubin) when patients initiate rifampin during LIVDELZI treatment. Coadministration may result in delayed or suboptimal biochemical response of LIVDELZI. Dual Moderate CYP2C9 and Moderate-to-Strong CYP3A4 Inhibitors and BCRP Inhibitors (e.g., cyclosporine): Monitor closely for adverse effects. Concomitant administration with LIVDELZI may increase LIVDELZI exposure. CYP2C9 Poor Metabolizers Using Moderate-to-Strong CYP3A4 Inhibitors: Monitor more frequently for adverse reactions as concomitant use of a moderate-to-strong CYP3A4 inhibitor in patients who are CYP2C9 poor metabolizers may increase LIVDELZI exposure and risk of LIVDELZI adverse reactions. Bile Acid Sequestrants: Administer LIVDELZI at least 4 hours before or 4 hours after taking a bile acid sequestrant, or at as great an interval as possible. Pregnancy: There are insufficient data from human pregnancies exposed to LIVDELZI to allow an assessment of a drug-associated risk of major birth defects, miscarriage, or other adverse maternal or fetal outcomes. Report pregnancies to Gilead Sciences, Inc. Lactation: There are no data on the presence of LIVDELZI in human milk, the effects on the breastfed infant, or the effects on milk production. The developmental and health benefits of breastfeeding should be considered along with the mother's clinical need for LIVDELZI and any potential adverse effects on the breastfed infant from LIVDELZI.

U.S. Healthcare Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Johnson & Johnson Presents New Data Reinforcing the Role of Nipocalimab in Lowering the Autoantibodies Driving Sjögren's Disease

Gilead Sciences Announces Statistically Significant Composite ALP Normalization With Livdelzi In Phase 3 IDEAL Trial In Primary Biliary Cholangitis

Agilent Technologies Receives FDA Approval For Expanded Use Of PD-L1 IHC 22C3 PharmDx On Dako Omnis In Esophageal Squamous Cell Carcinoma, Triple-Negative Breast Cancer, Cervical Cancer, And Gastric Or Gastroesophageal Junction Adenocarcinoma

Stryker Launches TPX HD Power Tool Supporting Demanding Orthopaedic Procedures

AbbVie Lifts 2026 Outlook as Skyrizi and Rinvoq Offset Humira Decline and Drive Portfolio Growth

Waters Corporation Unveils Cyclic Ims P20 Ms

BMY: Late Stage Milvexian Readouts And Pipeline Wins Will Drive Re Rating

Danaher Unveils SCIEX ZenoTOF Upgrades and Launches Next-Gen novus V55 Mass Spectrometer

HCA: Georgia Medicaid SDP And CMS Rule Will Shape Future Upside

MRK: Oncology Pipeline And Terns Deal Will Shape Future Earnings Balance

BSX: Clinical Pipeline And Capital Deployment Will Support Rebased Expectations

VEEV: AI Moat And CRM Commitments Will Support Future Multiple Reacceleration

ILMN: Clinical Momentum And Softer Competition Will Shape A Balanced Outlook

IQV: Future Returns Will Depend On AI Trial Expansion And Execution Risk Balancing

Thermo Fisher Scientific Unveils Orbitrap Tribrid Apex and Orbitrap Excedion Mass Spectrometers At ASMS 2026

Intuitive Surgical, Inc. Announces Executive Changes