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

U.S. Healthcare Sector Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies1388
  • 7D-3.1%
  • 3M-4.6%
  • 1Y3.6%
  • YTD-5.2%

Over the last 7 days, the Healthcare industry has dropped 3.1%, driven by a pullback from Eli Lilly of 2.3%. Over the past 12 months, the industry was up 3.6%. 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
Tue, 17 Mar 2026US$6.2tUS$3.3tUS$124.6b24.3x49.9x1.9x
Thu, 12 Feb 2026US$6.5tUS$3.3tUS$127.0b26.7x50.9x2x
Sat, 10 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.7x2.1x
Mon, 08 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.8x2x
Wed, 05 Nov 2025US$6.0tUS$3.2tUS$133.5b25.4x44.8x1.9x
Fri, 03 Oct 2025US$5.9tUS$3.1tUS$137.7b24.6x43.1x1.9x
Sun, 31 Aug 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Tue, 29 Jul 2025US$5.6tUS$3.1tUS$128.1b24.3x43.8x1.8x
Thu, 26 Jun 2025US$5.5tUS$3.0tUS$127.5b24.4x43x1.8x
Sat, 24 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.8x1.7x
Mon, 21 Apr 2025US$5.3tUS$2.6tUS$97.6b24.8x54.1x2x
Wed, 19 Mar 2025US$5.7tUS$2.6tUS$75.0b27x76.3x2.2x
Fri, 14 Feb 2025US$5.8tUS$2.6tUS$84.3b26.6x69.3x2.2x
Sun, 12 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Tue, 10 Dec 2024US$6.1tUS$2.9tUS$77.6b28.9x78.2x2.1x
Thu, 07 Nov 2024US$6.2tUS$2.9tUS$74.7b28.7x82.8x2.1x
Sat, 05 Oct 2024US$6.1tUS$2.8tUS$60.0b29.6x102.3x2.2x
Mon, 02 Sep 2024US$6.3tUS$2.8tUS$60.3b32.2x105x2.2x
Wed, 31 Jul 2024US$6.4tUS$2.8tUS$61.2b32x104.3x2.2x
Fri, 28 Jun 2024US$6.2tUS$2.8tUS$62.4b30.5x99.1x2.2x
Sun, 26 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.5x2.2x
Tue, 23 Apr 2024US$5.9tUS$2.8tUS$84.6b30.2x70x2.1x
Thu, 21 Mar 2024US$6.3tUS$2.8tUS$82.2b32.1x76.2x2.3x
Sat, 17 Feb 2024US$6.2tUS$2.8tUS$82.5b30.7x75.7x2.2x
Mon, 15 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Wed, 13 Dec 2023US$6.0tUS$2.8tUS$91.6b30.5x65.7x2.1x
Fri, 10 Nov 2023US$5.8tUS$2.8tUS$86.5b25.8x66.6x2x
Sun, 08 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Tue, 05 Sep 2023US$6.1tUS$2.8tUS$98.6b27.4x61.9x2.2x
Thu, 03 Aug 2023US$6.0tUS$2.8tUS$98.3b28.4x61.3x2.2x
Sat, 01 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Mon, 29 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Wed, 26 Apr 2023US$5.9tUS$2.5tUS$117.6b24.7x50.5x2.4x
Fri, 24 Mar 2023US$5.6tUS$2.5tUS$124.3b23.1x45.1x2.3x
Price to Earnings Ratio

45.1x


Total Market Cap: US$5.6tTotal Earnings: US$124.3bTotal Revenue: US$2.5tTotal 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 49.9x 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 remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 9.9% 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-2.40%
Healthcare-3.06%
Healthcare Services-1.77%
Pharma-1.87%
Biotech-2.43%
Medical Equipment-4.84%
Life Sciences-6.87%
Healthtech-6.95%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 56.0x.
    • Analysts are expecting annual earnings growth of 16.0%, 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 45% 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
ELV Elevance HealthUS$292.074.0%
+US$2.5b		-32.2%PE11.4x
VRTX Vertex PharmaceuticalsUS$466.101.1%
+US$1.3b		-9.3%PE30x
JNJ Johnson & JohnsonUS$243.190.2%
+US$1.1b		49.3%PE21.9x
BBIO BridgeBio PharmaUS$71.038.2%
+US$1.0b		115.2%PS27.4x
SNDA Sonida Senior LivingUS$36.17-1.8%
US$1.0b		47.8%PS5x

Latest News

LLY
US$989.12
Eli Lilly
7D
-1.9%
1Y
19.9%
ABT
US$109.95
Abbott Laboratories
7D
-2.4%
1Y
-13.9%
HCA
US$525.19
HCA Healthcare
7D
-3.7%
1Y
59.9%
BBIO
US$71.03
BridgeBio Pharma
7D
8.2%
1Y
115.2%
DNTH
US$78.00
Dianthus Therapeutics
7D
-1.6%
1Y
255.0%
SNDA
US$36.17
Sonida Senior Living
7D
-1.8%
1Y
47.8%
JNJ
US$243.19
Johnson & Johnson
7D
0.2%
1Y
49.3%
HIMS
US$24.88
Hims & Hers Health
7D
12.3%
1Y
-28.3%
VRTX
US$466.10
Vertex Pharmaceuticals
7D
1.1%
1Y
-9.3%
ABBV
US$221.45
AbbVie
7D
-2.6%
1Y
3.3%

ABBV: Future Returns Will Depend On Immunology Encore And Deal Optionality Uncertainty

The analyst price target for AbbVie edges higher to align with our fair value shift from $248.29 to $248.86, as analysts highlight ongoing indication expansion in immunology, potential operating leverage, and multiple expansion drivers, even as some firms note emerging competition and a more balanced risk and reward profile. Analyst Commentary Recent research on AbbVie reflects a split view, with some analysts pointing to upside tied to immunology growth and pipeline execution, while others flag competition risk and a more balanced risk and reward profile at current levels.
SYK
US$349.56
Stryker
7D
-4.5%
1Y
-6.4%
AMGN
US$366.25
Amgen
7D
-2.8%
1Y
15.5%
TMO
US$470.00
Thermo Fisher Scientific
7D
-7.8%
1Y
-9.5%

TMO: 2026 Tools Recovery And AI Use In Labs Will Support Upside

Analysts have raised their consolidated price target for Thermo Fisher Scientific by about $25, citing updated expectations for steady mid single digit organic growth into 2026, modestly higher profit margins and a slightly lower future P/E multiple. Analyst Commentary Recent street research points to a cluster of higher price targets for Thermo Fisher Scientific, with several bullish analysts updating their models to reflect expectations for mid single digit organic growth into 2026, slightly stronger margins and an adjusted P/E framework.
DHR
US$191.39
Danaher
7D
-3.7%
1Y
-10.0%

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.
ELV
US$292.07
Elevance Health
7D
4.0%
1Y
-32.2%

ELV: Medicare Advantage Upside And Policy Tailwinds Will Drive Repricing

Analysts have trimmed their aggregate price target for Elevance Health by updating fair value to about $451.95 from roughly $495.70. This reflects more conservative assumptions on revenue growth and profit margins, partly offset by a slightly higher future P/E multiple and recent mixed research that includes both target cuts and a few upward revisions.
AHG
US$2.45
Akso Health Group
7D
65.5%
1Y
102.5%