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U.S. Healthcare Sector Analysis
UpdatedMar 20, 2025
DataAggregated Company Financials
Companies1403
- 7D1.5%
- 3M3.8%
- 1Y-2.9%
- YTD2.8%
Over the last 7 days, the Healthcare industry has risen 1.5%, driven by gains from UnitedHealth Group of 4.6%. During this same period, the Gilead Sciences underperformed, falling 5.7%. Overall in the last year, the industry is flat. As for the next few years, earnings are expected to grow by 18% per annum.
Sector Valuation and Performance
Has the U.S. Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 21 Mar 2025 | US$5.7t | US$2.6t | US$75.2b | 26.9x | 75.9x | 2.2x |
| Sun, 16 Feb 2025 | US$5.8t | US$2.6t | US$82.1b | 26.8x | 70.8x | 2.2x |
| Tue, 14 Jan 2025 | US$5.8t | US$2.9t | US$78.9b | 28.2x | 74x | 2x |
| Thu, 12 Dec 2024 | US$6.0t | US$2.9t | US$77.5b | 28.1x | 78x | 2.1x |
| Sat, 09 Nov 2024 | US$6.2t | US$2.9t | US$75.9b | 28.3x | 82.1x | 2.1x |
| Mon, 07 Oct 2024 | US$6.2t | US$2.8t | US$60.0b | 29.7x | 102.5x | 2.2x |
| Wed, 04 Sep 2024 | US$6.3t | US$2.8t | US$60.4b | 31.1x | 104.9x | 2.2x |
| Fri, 02 Aug 2024 | US$6.4t | US$2.9t | US$68.5b | 32.9x | 92.7x | 2.2x |
| Sun, 30 Jun 2024 | US$6.2t | US$2.8t | US$62.2b | 30.5x | 99.3x | 2.2x |
| Tue, 28 May 2024 | US$6.1t | US$2.8t | US$63.7b | 30.9x | 96.4x | 2.2x |
| Thu, 25 Apr 2024 | US$6.0t | US$2.8t | US$84.1b | 31.3x | 71.8x | 2.2x |
| Sat, 23 Mar 2024 | US$6.2t | US$2.8t | US$82.1b | 31.8x | 75.9x | 2.2x |
| Mon, 19 Feb 2024 | US$6.3t | US$2.8t | US$82.4b | 30.1x | 75.9x | 2.2x |
| Wed, 17 Jan 2024 | US$6.4t | US$2.8t | US$90.8b | 32.2x | 70.2x | 2.3x |
| Fri, 15 Dec 2023 | US$6.1t | US$2.8t | US$91.5b | 32.5x | 67.1x | 2.2x |
| Sun, 12 Nov 2023 | US$5.7t | US$2.8t | US$91.0b | 26.5x | 62.1x | 2x |
| Tue, 10 Oct 2023 | US$5.9t | US$2.8t | US$98.3b | 26.1x | 59.9x | 2.1x |
| Thu, 07 Sep 2023 | US$6.0t | US$2.8t | US$98.6b | 27.5x | 61x | 2.2x |
| Sat, 05 Aug 2023 | US$6.1t | US$2.8t | US$100.7b | 28.8x | 60.6x | 2.2x |
| Mon, 03 Jul 2023 | US$6.1t | US$2.7t | US$110.3b | 26.6x | 54.9x | 2.2x |
| Wed, 31 May 2023 | US$5.8t | US$2.7t | US$110.5b | 24.5x | 52.2x | 2.1x |
| Fri, 28 Apr 2023 | US$5.9t | US$2.5t | US$123.1b | 24.4x | 47.9x | 2.4x |
| Sun, 26 Mar 2023 | US$5.7t | US$2.5t | US$124.1b | 23.6x | 45.7x | 2.3x |
| Tue, 21 Feb 2023 | US$5.9t | US$2.5t | US$131.2b | 24.7x | 45.2x | 2.4x |
| Thu, 19 Jan 2023 | US$6.0t | US$2.5t | US$135.9b | 22.6x | 43.8x | 2.4x |
| Sat, 17 Dec 2022 | US$6.0t | US$2.4t | US$133.8b | 23.3x | 44.7x | 2.5x |
| Mon, 14 Nov 2022 | US$5.9t | US$2.4t | US$136.1b | 23.1x | 43.5x | 2.4x |
| Wed, 12 Oct 2022 | US$5.5t | US$2.4t | US$155.7b | 21.3x | 35.3x | 2.3x |
| Fri, 09 Sep 2022 | US$5.9t | US$2.4t | US$156.5b | 22.8x | 37.5x | 2.4x |
| Sun, 07 Aug 2022 | US$6.0t | US$2.4t | US$161.4b | 24.6x | 37.4x | 2.5x |
| Tue, 05 Jul 2022 | US$5.9t | US$2.6t | US$165.6b | 23.9x | 35.4x | 2.3x |
| Thu, 02 Jun 2022 | US$5.8t | US$2.6t | US$166.5b | 24.2x | 34.9x | 2.2x |
| Sat, 30 Apr 2022 | US$5.9t | US$2.5t | US$157.0b | 27.4x | 37.6x | 2.4x |
| Mon, 28 Mar 2022 | US$6.5t | US$2.5t | US$171.2b | 28.8x | 37.7x | 2.6x |
Price to Earnings Ratio
37.7x
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 75.9x which is higher than its 3-year average PE of 62.9x.
- The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 24% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.1% 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, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Healthcare sector?
| US Market | 2.09% | |
| Healthcare | 1.52% | |
| Healthcare Services | 3.65% | |
| Healthtech | 2.25% | |
| Life Sciences | 2.00% | |
| Medical Equipment | 1.54% | |
| Pharma | 1.09% | |
| Biotech | -0.42% | |
Industry PE
- Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.5x.
- Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings decline of 3.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 27% over the next 5 years.
- However this is lower than its past earnings growth rate of 40% per year.
- In contrast, the Medical Equipment 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| LLY Eli Lilly | US$842.57 | 5.1% +US$36.8b | 9.4% | PE71.5x | |
| UNH UnitedHealth Group | US$511.30 | 6.2% +US$27.2b | 4.0% | PE32.5x | |
| BSX Boston Scientific | US$101.51 | 6.4% +US$9.4b | 50.3% | PE81x | |
| ISRG Intuitive Surgical | US$491.81 | 3.2% +US$6.2b | 25.5% | PE75.9x | |
| DHR Danaher | US$210.25 | 3.0% +US$4.4b | -17.3% | PE38.5x |
