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

U.S. Healthcare Sector Analysis

UpdatedJan 14, 2026
DataAggregated Company Financials
Companies1398
  • 7D-0.7%
  • 3M10.8%
  • 1Y12.4%
  • YTD1.5%

Last week, the Healthcare industry hasn't moved much but Johnson & Johnson is up 4.3% in that time. The past year has been better, since the industry has gained 12% in that time. Earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 15 Jan 2026US$6.6tUS$3.2tUS$136.3b26.8x48.5x2.1x
Sat, 13 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.7x2x
Mon, 10 Nov 2025US$6.0tUS$3.2tUS$133.4b25.5x45x1.9x
Wed, 08 Oct 2025US$6.0tUS$3.1tUS$137.9b24.2x43.6x1.9x
Fri, 05 Sep 2025US$5.7tUS$3.1tUS$137.6b22.8x41.4x1.8x
Sun, 03 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Tue, 01 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Thu, 29 May 2025US$5.4tUS$3.0tUS$126.9b22.8x42.3x1.8x
Sat, 26 Apr 2025US$5.4tUS$2.7tUS$118.4b24.8x45.6x2x
Mon, 24 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x69.9x2.2x
Wed, 19 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Fri, 17 Jan 2025US$5.9tUS$2.9tUS$78.9b27.5x74.3x2x
Sun, 15 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Tue, 12 Nov 2024US$6.3tUS$2.9tUS$76.4b28.5x82.3x2.2x
Thu, 10 Oct 2024US$6.2tUS$2.8tUS$60.1b29.7x102.3x2.2x
Sat, 07 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Mon, 05 Aug 2024US$6.4tUS$2.9tUS$64.1b31x99.1x2.2x
Wed, 03 Jul 2024US$6.1tUS$2.8tUS$62.3b29.9x98.8x2.2x
Fri, 31 May 2024US$6.0tUS$2.8tUS$64.2b29.8x94.1x2.1x
Sun, 28 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Tue, 26 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Thu, 22 Feb 2024US$6.2tUS$2.8tUS$86.0b31.3x72.3x2.2x
Sat, 20 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Mon, 18 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Wed, 15 Nov 2023US$5.7tUS$2.8tUS$90.9b27.8x62.7x2x
Fri, 13 Oct 2023US$5.9tUS$2.8tUS$98.3b25.7x59.9x2.1x
Sun, 10 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Tue, 08 Aug 2023US$6.1tUS$2.8tUS$97.9b28.3x62.7x2.2x
Thu, 06 Jul 2023US$6.0tUS$2.7tUS$110.2b26x54.4x2.2x
Sat, 03 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Mon, 01 May 2023US$6.0tUS$2.5tUS$118.4b24.7x50.4x2.4x
Wed, 29 Mar 2023US$5.7tUS$2.5tUS$123.6b23.7x45.8x2.3x
Fri, 24 Feb 2023US$5.8tUS$2.5tUS$123.3b24.3x47.2x2.4x
Sun, 22 Jan 2023US$6.0tUS$2.5tUS$135.9b23.3x44.2x2.4x
Price to Earnings Ratio

44.2x


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 Market0.24%
Healthcare-0.70%
Pharma1.57%
Biotech-0.22%
Life Sciences-1.22%
Healthcare Services-2.77%
Medical Equipment-2.85%
Healthtech-4.57%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.7x.
    • Analysts are expecting annual earnings growth of 17.2%, 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
JNJ Johnson & JohnsonUS$218.555.3%
+US$26.6b		50.8%PE21x
MRK MerckUS$111.012.2%
+US$6.0b		10.9%PE14.5x
RVMD Revolution MedicinesUS$121.2218.0%
+US$3.6b		203.4%PB14.7x
MDLN MedlineUS$43.417.4%
+US$2.5b		n/aPE28.5x
BNTX BioNTechUS$109.129.0%
+US$2.3b		-4.0%PS7.5x

Latest News

JNJ
US$218.55
Johnson & Johnson
7D
5.3%
1Y
50.8%
ISRG
US$546.76
Intuitive Surgical
7D
-7.7%
1Y
-5.7%
MRNA
US$40.60
Moderna
7D
13.1%
1Y
16.8%
RVMD
US$121.22
Revolution Medicines
7D
18.0%
1Y
203.4%
BNTX
US$109.12
BioNTech
7D
9.0%
1Y
-4.0%
ALNY
US$366.86
Alnylam Pharmaceuticals
7D
-13.2%
1Y
46.2%
LLY
US$1,073.29
Eli Lilly
7D
-3.1%
1Y
43.7%

LLY: GLP-1 Pricing Deals Will Pressure Obesity Margins Going Forward

Analysts lifted their fair value estimate for Eli Lilly from US$650 to US$770, citing higher assumed profit margins, a slightly higher discount rate, updated expectations for revenue growth and future P/E, and continued Street support related to the obesity franchise, GLP-1 pricing agreements, and pipeline catalysts. Analyst Commentary Recent Street research around Eli Lilly has been dominated by views on obesity drugs, pricing agreements with the U.S. government, and the company’s expanding pipeline.
BSX
US$93.74
Boston Scientific
7D
-5.0%
1Y
-3.3%

BSX: Shares Should Rise On Execution Outperformance And 2026 Normalization Potential

Analysts have trimmed their Boston Scientific fair value estimate slightly to about $125.45 from $125.86, reflecting fine tuning of discount rate, revenue growth, profit margin and future P/E assumptions in light of recent price target resets and largely supportive research commentary across the MedTech sector. Analyst Commentary Recent Street research on Boston Scientific reflects generally constructive views on execution and growth, with some recalibration of targets as models are updated after quarterly results and sector wide resets.
HCA
US$478.84
HCA Healthcare
7D
1.7%
1Y
56.4%

HCA: Future Returns Will Rely On Supplemental Payments And Policy Stability

Analysts have nudged their fair value estimate for HCA Healthcare higher to $485.85 from $481.95, reflecting refreshed price targets that lean on recent Q3 strength, higher expected margins and supplemental payment support, while still flagging legislative and reimbursement risks. Analyst Commentary Recent Street research on HCA Healthcare shows a clear tilt toward higher valuation frameworks after Q3, with most firms raising price targets and linking their moves to margin strength, supplemental payment support and updated longer term assumptions.
COR
US$349.93
Cencora
7D
2.8%
1Y
47.2%

COR: Global 3PL Buildout And Higher Dividend Will Support Long-Term Upside

Analysts have nudged their price target on Cencora higher to about $388, citing slightly lower modeled revenue growth, a modestly stronger profit margin, and a small uptick in assumed future P/E as key drivers of the updated view. What's in the News Cencora announced investments to expand its third party logistics capabilities in the United States and Europe, including broader specialty logistics services for pharmaceutical companies worldwide.
MRK
US$111.01
Merck
7D
2.2%
1Y
10.9%

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.
VRTX
US$449.53
Vertex Pharmaceuticals
7D
-7.2%
1Y
6.0%

VRTX: CF Durability And Kidney Pipeline Data Will Define Next Phase

Analysts have lifted their Vertex Pharmaceuticals fair value estimate by about US$11 to US$496.16, reflecting updated assumptions on revenue growth, margins and future P/E, as recent research highlights confidence in the durability of its cystic fibrosis franchise and potential upside from its broader pipeline. Analyst Commentary Recent Street research around Vertex Pharmaceuticals points to a generally constructive view, with most commentary focusing on the durability of the cystic fibrosis franchise, the breadth of the pipeline and how these factors feed into valuation targets and rating changes.
ABBV
US$221.89
AbbVie
7D
-4.9%
1Y
29.5%

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.
AMGN
US$328.97
Amgen
7D
-3.7%
1Y
22.3%

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

Jan 07
Amgen (NASDAQ:AMGN) Is Increasing Its Dividend To $2.52
RGC
US$35.17
Regencell Bioscience Holdings
7D
-33.5%
1Y
27,512.9%
MDLN
US$43.41
Medline
7D
7.4%
1Y
n/a