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U.S. Healthcare Sector Analysis

UpdatedAug 19, 2026
DataAggregated Company Financials
Companies1382
  • 7D0.8%
  • 3M15.3%
  • 1Y26.2%
  • YTD10.0%

The Healthcare is pretty flat in the last 7 days, but Johnson & Johnson has stood out, gaining 4.4%. The past year has been better, since the industry has gained 25% in that time. As for the next few years, earnings are expected to grow by 20% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 19 Aug 2026US$7.1tUS$3.4tUS$115.7b26.1x61.3x2.1x
Fri, 17 Jul 2026US$6.8tUS$3.3tUS$121.5b25.5x55.9x2x
Sun, 14 Jun 2026US$6.5tUS$3.3tUS$122.1b23.4x53.2x1.9x
Tue, 12 May 2026US$6.2tUS$3.3tUS$123.7b22.5x49.8x1.9x
Thu, 09 Apr 2026US$6.2tUS$3.3tUS$127.2b23.1x48.5x1.9x
Sat, 07 Mar 2026US$6.4tUS$3.3tUS$126.1b24.9x50.7x2x
Mon, 02 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Wed, 31 Dec 2025US$6.5tUS$3.2tUS$134.8b26x48.4x2x
Fri, 28 Nov 2025US$6.6tUS$3.2tUS$133.5b26.7x49.1x2.1x
Sun, 26 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.3x2x
Tue, 23 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.4x1.8x
Thu, 21 Aug 2025US$5.7tUS$3.1tUS$137.2b23.8x41.3x1.8x
Sat, 19 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42.3x1.8x
Mon, 16 Jun 2025US$5.5tUS$3.0tUS$127.4b23.5x43.5x1.8x
Wed, 14 May 2025US$5.5tUS$3.0tUS$125.7b24.3x43.8x1.8x
Fri, 11 Apr 2025US$5.4tUS$2.6tUS$81.7b24.8x65.9x2x
Sun, 09 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.7x2.2x
Tue, 04 Feb 2025US$6.1tUS$2.9tUS$85.2b27.1x72x2.1x
Thu, 02 Jan 2025US$5.8tUS$2.9tUS$79.4b27.5x72.6x2x
Sat, 30 Nov 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Mon, 28 Oct 2024US$6.0tUS$2.8tUS$59.1b29.1x102.2x2.1x
Wed, 25 Sep 2024US$6.3tUS$2.8tUS$60.1b30.2x104x2.2x
Fri, 23 Aug 2024US$6.2tUS$2.8tUS$56.4b30.8x110.8x2.2x
Sun, 21 Jul 2024US$6.3tUS$2.8tUS$60.7b31.7x103.5x2.2x
Tue, 18 Jun 2024US$6.2tUS$2.8tUS$62.5b30.2x99x2.2x
Thu, 16 May 2024US$6.1tUS$2.8tUS$64.0b30.9x96.1x2.2x
Sat, 13 Apr 2024US$6.1tUS$2.8tUS$85.3b31.4x71.2x2.2x
Mon, 11 Mar 2024US$6.3tUS$2.8tUS$85.3b32.5x73.8x2.3x
Wed, 07 Feb 2024US$6.3tUS$2.8tUS$84.0b31.5x75.2x2.3x
Fri, 05 Jan 2024US$6.3tUS$2.8tUS$90.0b31.7x70x2.2x
Sun, 03 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x65x2.1x
Tue, 31 Oct 2023US$5.6tUS$2.8tUS$99.5b24.7x55.9x2x
Thu, 28 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.7x2.1x
Sat, 26 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Price to Earnings Ratio

61.6x


Total Market Cap: US$6.1tTotal Earnings: US$99.0bTotal Revenue: US$2.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.5x202420252026
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 61.4x 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.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 5.3% per year over the last three years.
  • Revenues for these companies have grown 6.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market-0.35%
Healthcare0.76%
Healthtech2.80%
Pharma2.31%
Biotech1.77%
Healthcare Services-0.38%
Medical Equipment-0.92%
Life Sciences-2.50%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 55.6x.
    • Analysts are expecting annual earnings growth of 18.8%, which is higher than its past year's earnings growth of 9.6% 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 65% per year.
  • In contrast, the Medical Equipment industry is expected to see its earnings grow by 17% 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$271.114.4%
+US$27.3b		52.5%PE31.1x
ABBV AbbVieUS$258.923.5%
+US$15.6b		25.6%PE73x
MRK MerckUS$135.173.6%
+US$11.7b		59.2%PE105.1x
LLY Eli LillyUS$1.23k0.9%
+US$9.5b		74.3%PE40.9x
GILD Gilead SciencesUS$143.445.6%
+US$9.5b		21.6%PS5.8x

Latest News

GILD
US$143.44
Gilead Sciences
7D
5.6%
1Y
21.6%
SYK
US$331.37
Stryker
7D
-4.8%
1Y
-15.0%
JNJ
US$271.11
Johnson & Johnson
7D
4.4%
1Y
52.5%
IDXX
US$553.32
IDEXX Laboratories
7D
-5.7%
1Y
-13.1%
Seeking Alpha • 21h

IDEXX Labs Executing, But Valuation Continues To Weigh On That Execution

Summary IDEXX Laboratories remains a dominant, high-quality player in veterinary diagnostics but trades at a demanding valuation reflecting long-established operational strength. IDXX delivered healthy Q2 results, raising guidance to over 9% organic revenue growth and 32%+ operating margin, driven by recurring diagnostics revenue, growing system placements, and expanding test menus. Long-term growth levers include aging pet demographics, menu expansion, and international markets, but declining U.S. vet visits and affordability concerns temper enthusiasm. While multiples-based valuation suggests double-digit upside, I require a greater margin of safety or stabilizing vet visit trends before increasing exposure to this richly valued stock. Read the full article on Seeking Alpha
UNH
US$393.93
UnitedHealth Group
7D
-2.1%
1Y
29.5%
ABT
US$112.68
Abbott Laboratories
7D
2.7%
1Y
-14.1%
LLY
US$1,225.73
Eli Lilly
7D
0.9%
1Y
74.3%
COR
US$316.13
Cencora
7D
-5.3%
1Y
7.3%
ISRG
US$391.18
Intuitive Surgical
7D
-2.5%
1Y
-18.4%
TMO
US$589.04
Thermo Fisher Scientific
7D
-2.6%
1Y
18.2%
Seeking Alpha • Aug 16

Thermo Fisher Scientific: Biopharma Recovery And Share Gains Support The Upside

Summary Thermo Fisher Scientific is rated a Buy, supported by accelerating organic growth and improving Pharma and Biotech end markets. TMO’s recent acquisitions of Clario and Solventum’s Filtration and Separation business expand capabilities, enabling greater share of customer spending and revenue synergies. Q2 2026 results showed 10% revenue growth, 5% organic growth, and improved margins, with Pharma and Biotech driving mid-single-digit gains. Valuation is reasonable versus peers and history; with 9-10% expected EPS growth and potential for multiple expansion, risk/reward appears attractive. Read the full article on Seeking Alpha
ABBV
US$258.92
AbbVie
7D
3.5%
1Y
25.6%
BMY
US$66.05
Bristol-Myers Squibb
7D
3.8%
1Y
36.6%
Narrative Update • Aug 14

BMY: 2026 Pipeline And M&A Noise Will Not Mitigate Patent Cliff

Analysts have lifted their blended price targets for Bristol-Myers Squibb toward the $70 to $75 range, citing improving sentiment around growth products, recent Q2 earnings updates, and ongoing debate around potential M&A interest as key drivers behind the reassessment of fair value from about $45.67 to roughly $49.02 per share. Analyst Commentary Recent research coverage on Bristol-Myers Squibb highlights a mix of improving sentiment and lingering concerns.
AMGN
US$425.28
Amgen
7D
2.7%
1Y
43.9%
DHR
US$199.58
Danaher
7D
-3.8%
1Y
-5.9%
Seeking Alpha • Aug 14

Danaher: 2027 Growth Reacceleration Should Drive Upside

Summary Danaher is rated a Buy, with revenue growth expected to accelerate in 2027 as respiratory headwinds fade and bioprocessing shipments recover. DHR’s valuation is reasonable, trading at a 12% discount to its five-year average P/E, supported by strong recurring revenues and operational excellence. Life Sciences segment shows robust recovery, with 5.5% core growth and margin expansion, driven by improved pharma spending and biotech funding. Bioprocessing order delays are temporary, with over $100 million in revenue shifting to 2027, positioning DHR for future upside. Read the full article on Seeking Alpha
MRK
US$135.17
Merck
7D
3.6%
1Y
59.2%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
MCK
US$869.26
McKesson
7D
-3.6%
1Y
28.4%
Seeking Alpha • Aug 08

McKesson: Solid Q1 Earnings And Management Execution (Rating Upgrade)

Summary McKesson delivered strong Q1 results, with EPS up 20% and revenues rising 7.7% while modestly raising FY27 EPS guidance. I see GLP-1-driven momentum decelerating alongside a broader dip in the company's top-line growth profile. The Wellverse spin-off and prior divestitures are streamlining MCK, potentially justifying a premium multiple versus peers. While the valuation isn't overly attractive, management is executing well, and I'm upgrading shares to a hold rating today. Read the full article on Seeking Alpha