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U.S. Healthcare Sector Analysis

UpdatedMar 08, 2026
DataAggregated Company Financials
Companies1396
  • 7D-4.7%
  • 3M-1.4%
  • 1Y3.7%
  • YTD-3.2%

Over the last 7 days, the Healthcare industry has dropped 4.7%, driven by Eli Lilly declining 5.9%. On the other hand Veeva Systems is actually up 7.4%. This takes the industry's 12 month performance to a gain of 3.7%. 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
Mon, 09 Mar 2026US$6.4tUS$3.3tUS$125.5b24.9x50.6x1.9x
Wed, 04 Feb 2026US$6.5tUS$3.2tUS$126.5b26.2x51.6x2x
Fri, 02 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x47.8x2x
Sun, 30 Nov 2025US$6.5tUS$3.2tUS$133.5b26.5x48.9x2.1x
Tue, 28 Oct 2025US$6.1tUS$3.1tUS$140.4b26.2x43.3x2x
Thu, 25 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.5x1.8x
Sat, 23 Aug 2025US$5.7tUS$3.1tUS$137.2b23.7x41.4x1.8x
Mon, 21 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Wed, 18 Jun 2025US$5.5tUS$3.0tUS$127.4b22.6x43.5x1.8x
Fri, 16 May 2025US$5.2tUS$3.0tUS$125.8b23.2x41.7x1.7x
Sun, 13 Apr 2025US$5.3tUS$2.6tUS$82.2b24.9x64.7x2x
Tue, 11 Mar 2025US$5.8tUS$2.6tUS$78.7b27.4x74x2.2x
Thu, 06 Feb 2025US$5.9tUS$2.6tUS$88.1b27.5x67.1x2.2x
Sat, 04 Jan 2025US$5.8tUS$2.9tUS$79.3b27.3x72.7x2x
Mon, 02 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Wed, 30 Oct 2024US$6.1tUS$2.8tUS$66.3b29.5x91.3x2.1x
Fri, 27 Sep 2024US$6.2tUS$2.8tUS$60.0b29.9x103.2x2.2x
Sun, 25 Aug 2024US$6.3tUS$2.8tUS$56.4b31.6x111.1x2.2x
Tue, 23 Jul 2024US$6.3tUS$2.8tUS$60.7b31.9x103.5x2.2x
Thu, 20 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.5x2.2x
Sat, 18 May 2024US$6.2tUS$2.8tUS$64.2b30.5x97x2.2x
Mon, 15 Apr 2024US$6.0tUS$2.8tUS$85.4b31.9x70x2.1x
Wed, 13 Mar 2024US$6.3tUS$2.8tUS$85.3b32.4x73.6x2.3x
Fri, 09 Feb 2024US$6.2tUS$2.8tUS$76.5b31.3x80.6x2.2x
Sun, 07 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Tue, 05 Dec 2023US$5.9tUS$2.8tUS$91.4b29.2x65x2.1x
Thu, 02 Nov 2023US$5.6tUS$2.8tUS$93.3b24.6x60x2x
Sat, 30 Sep 2023US$5.9tUS$2.8tUS$98.6b27.6x59.8x2.1x
Mon, 28 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Wed, 26 Jul 2023US$6.1tUS$2.7tUS$110.1b27x55.6x2.2x
Fri, 23 Jun 2023US$6.0tUS$2.7tUS$109.8b26.6x54.8x2.2x
Sun, 21 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Tue, 18 Apr 2023US$6.0tUS$2.5tUS$123.6b24.5x48.4x2.4x
Thu, 16 Mar 2023US$5.6tUS$2.5tUS$122.4b24x46x2.3x
Price to Earnings Ratio

46x


Total Market Cap: US$5.6tTotal Earnings: US$122.4bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.4x202420252026
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 50.6x which is lower than its 3-year average PE of 65.4x.
  • 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 9.8% 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 and as a result, profits have held steady.

Industry Trends

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

US Market-2.24%
Healthcare-4.70%
Healthtech4.85%
Healthcare Services-3.64%
Biotech-3.94%
Pharma-4.92%
Life Sciences-5.06%
Medical Equipment-5.91%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.1%, which is higher than its past year's earnings growth of 6.8% 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 11% 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
VEEV Veeva SystemsUS$195.497.4%
+US$2.2b		-20.8%PE35.4x
DAWN Day One BiopharmaceuticalsUS$21.20100.0%
+US$1.1b		144.5%PS13.8x
TNGX Tango TherapeuticsUS$16.9552.2%
+US$918.3m		743.3%PS38.8x
HCA HCA HealthcareUS$532.810.6%
+US$695.2m		61.4%PE17.6x
SRRK Scholar Rock HoldingUS$45.292.3%
+US$687.2m		25.8%PB21.2x

Latest News

AMGN
US$369.53
Amgen
7D
-4.8%
1Y
13.8%
JNJ
US$240.40
Johnson & Johnson
7D
-3.2%
1Y
44.2%
SYK
US$364.56
Stryker
7D
-5.9%
1Y
-3.9%

SYK: Diversified Product Reach And Robotics Expansion Will Support 2026 Upside

The analyst fair value estimate for Stryker has edged up by about $0.50 to $424.90, as analysts factor in recent price target moves, including several Outperform ratings that highlight the company's broader product reach and diversified growth profile. Analyst Commentary Recent research on Stryker reflects a mix of optimism about the company’s growth profile and some caution on valuation and sector level risks.
SRRK
US$45.29
Scholar Rock Holding
7D
2.3%
1Y
25.8%

Muscle-Targeted SMA Therapies And Global Expansion Will Reshape Long-Term Outlook

Catalysts About Scholar Rock Holding Scholar Rock Holding focuses on developing muscle-targeted therapies for rare and severe neuromuscular diseases, led by its apitegromab program for spinal muscular atrophy and a broader anti myostatin pipeline. What are the underlying business or industry changes driving this perspective?
VEEV
US$195.49
Veeva Systems
7D
7.4%
1Y
-20.8%
DAWN
US$21.20
Day One Biopharmaceuticals
7D
100.0%
1Y
144.5%
LLY
US$990.33
Eli Lilly
7D
-5.9%
1Y
13.9%
VRTX
US$456.69
Vertex Pharmaceuticals
7D
-8.1%
1Y
-6.5%

VRTX: CF Dependence Will Heighten Risk Around Upcoming Renal Readouts

Analysts have nudged their target on Vertex Pharmaceuticals higher, with our fair value estimate moving from $401.30 to $403.80. This reflects updated Q4 results, slightly adjusted revenue growth and margin assumptions, and ongoing confidence in the broader pipeline, as seen in a series of recent price target increases across the Street.
MRK
US$115.79
Merck
7D
-6.5%
1Y
22.3%

MRK: Keytruda Cliff And M&A Uncertainty Will Likely Curb Long Term Upside

Analysts have lifted their Merck fair value estimate from $83.00 to about $101.04, pointing to broad price target hikes across the Street and citing confidence in upcoming product launches, Phase 3 readouts, and management's approach to the Keytruda loss of exclusivity. Analyst Commentary Recent research coverage on Merck has tilted positive, with several firms lifting price targets and starting the stock with favorable ratings.
ERAS
US$15.47
Erasca
7D
13.3%
1Y
911.1%

Erasca Inc. (ERAS): The RAS Specialist – Scaling the Precision Oncology Peak in 2026.

Erasca Inc. (ERAS) is currently in the midst of a breakout year for its precision oncology platform, trading at $15.12 as of the March 4, 2026, market close.
DHR
US$195.50
Danaher
7D
-7.2%
1Y
-7.8%

DHR: Masimo Cash Deal Will Support Re Rating And Premium Multiple

The analyst price target for Danaher has moved higher by a mid single digit dollar amount, reflecting updated assumptions for slightly stronger revenue growth and margins, alongside recent Street research that raised targets following the Masimo acquisition announcement and sector wide target adjustments. Analyst Commentary Recent Street research around Danaher reflects a mix of optimism on the Masimo acquisition and valuation, alongside a more cautious stance on deal terms and execution risk.
MEDP
US$470.59
Medpace Holdings
7D
4.2%
1Y
41.4%

MEDP: Efficiency And Biotech Exposure Will Support Margin Strength Going Forward

Analysts have lifted their implied fair value estimate for Medpace Holdings to $582 from $510, citing the company's efficiency as a contract research organization, stronger profit margin assumptions at 17.94%, and a higher future P/E of about 29.35x as key supports for the updated price targets across recent research. Analyst Commentary Recent research coverage has highlighted a generally constructive tone around Medpace, with several bullish analysts pointing to efficiency, exposure to biopharma clients, and margin profile as key parts of the equity story.
IOVA
US$5.13
Iovance Biotherapeutics
7D
32.9%
1Y
36.8%

IOVA: Elevated Future P/E Will Likely Clash With 2026 Clinical Data Risks

Analysts have lifted their price targets on Iovance Biotherapeutics from a range starting at $3 to as high as $16, citing Q4 revenue momentum, improving gross margins and manufacturing efficiency, and expectations for more clinical data in 2026. Analyst Commentary Recent research highlights a split in how Wall Street views Iovance Biotherapeutics, with some firms lifting price targets on the back of Q4 execution and others trimming expectations while still acknowledging operational progress.
HCA
US$532.81
HCA Healthcare
7D
0.6%
1Y
61.4%

HCA: Future Returns Will Depend On AI Efficiency And Capital Returns

The updated analyst price target for HCA Healthcare edges higher to an implied fair value of about $542, as analysts factor in the potential for AI driven efficiency gains to support a slightly richer P/E multiple while keeping core growth and margin assumptions essentially unchanged. Analyst Commentary Recent Street research on HCA Healthcare has tilted more constructive, with several bullish analysts lifting their price targets and framing AI driven efficiency as a potential support for a higher valuation multiple.
ABT
US$109.56
Abbott Laboratories
7D
-5.8%
1Y
-20.1%
TNGX
US$16.95
Tango Therapeutics
7D
52.2%
1Y
743.3%