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U.S. Healthcare Sector Analysis

UpdatedMay 28, 2026
DataAggregated Company Financials
Companies1404
  • 7D1.0%
  • 3M-3.9%
  • 1Y16.3%
  • YTD-3.7%

Over the last 7 days, the Healthcare industry has remained flat, although notably Eli Lilly gained 6.3%. The past year has been better, since the industry has gained 16% in that time. 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 28 May 2026US$6.3tUS$3.3tUS$122.5b23.1x51.6x1.9x
Sat, 25 Apr 2026US$6.2tUS$3.3tUS$121.3b24x51.3x1.9x
Mon, 23 Mar 2026US$6.1tUS$3.3tUS$124.7b22.3x48.7x1.9x
Wed, 18 Feb 2026US$6.6tUS$3.3tUS$128.7b26.2x50.9x2x
Fri, 16 Jan 2026US$6.6tUS$3.2tUS$136.3b27.3x48.6x2.1x
Sun, 14 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.8x2x
Tue, 11 Nov 2025US$6.0tUS$3.2tUS$133.4b25.4x45.1x1.9x
Thu, 09 Oct 2025US$6.0tUS$3.1tUS$137.9b24.7x43.5x1.9x
Sat, 06 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.5x1.8x
Mon, 04 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Wed, 02 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Fri, 30 May 2025US$5.3tUS$3.0tUS$127.3b23x41.9x1.8x
Sun, 27 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Tue, 25 Mar 2025US$5.7tUS$2.6tUS$81.8b27.1x69.9x2.2x
Thu, 20 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Sat, 18 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.5x2x
Mon, 16 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Wed, 13 Nov 2024US$6.3tUS$2.9tUS$76.7b28.4x82.3x2.2x
Fri, 11 Oct 2024US$6.2tUS$2.8tUS$60.0b29.5x103.3x2.2x
Sun, 08 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Tue, 06 Aug 2024US$6.4tUS$2.9tUS$64.1b30.1x99.1x2.2x
Thu, 04 Jul 2024US$6.1tUS$2.8tUS$62.3b29.6x97.5x2.2x
Sat, 01 Jun 2024US$6.0tUS$2.8tUS$64.0b29.9x94.1x2.1x
Mon, 29 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Wed, 27 Mar 2024US$6.2tUS$2.8tUS$82.3b31.6x75.6x2.2x
Fri, 23 Feb 2024US$6.2tUS$2.8tUS$86.8b30.7x71.8x2.2x
Sun, 21 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Tue, 19 Dec 2023US$6.1tUS$2.8tUS$91.5b32.1x66.5x2.2x
Thu, 16 Nov 2023US$5.8tUS$2.8tUS$90.9b28x63.5x2.1x
Sat, 14 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.4x2.1x
Mon, 11 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Wed, 09 Aug 2023US$6.2tUS$2.8tUS$99.3b28.1x62.3x2.2x
Fri, 07 Jul 2023US$5.9tUS$2.7tUS$110.3b25.9x53.6x2.2x
Sun, 04 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Price to Earnings Ratio

53.9x


Total Market Cap: US$6.0tTotal Earnings: US$110.4bTotal Revenue: US$2.7tTotal 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 51.6x 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 3.5% per year over the last three years.
  • Revenues for these companies have grown 6.9% 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 Market1.27%
Healthcare0.96%
Pharma3.56%
Life Sciences1.56%
Biotech1.02%
Healthcare Services-0.091%
Healthtech-1.05%
Medical Equipment-3.52%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 54.4x.
    • Analysts expect its future annual earnings growth (16.1%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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
LLY Eli LillyUS$1.08k6.3%
+US$57.1b		50.5%PE38.2x
MRK MerckUS$120.246.4%
+US$17.9b		57.9%PE33.2x
ABBV AbbVieUS$215.401.5%
+US$5.5b		17.6%PE105.9x
JNJ Johnson & JohnsonUS$231.290.9%
+US$4.7b		51.7%PE26.5x
GILD Gilead SciencesUS$133.692.3%
+US$3.7b		23.3%PE18x

Latest News

MDT
US$75.98
Medtronic
7D
-2.8%
1Y
-6.5%
Seeking Alpha • 2h

Medtronic's Fair Value Falls Between Caution And Optimism

Summary Medtronic plc now trades 42% below its all-time high after a prolonged correction, with valuation multiples near decade lows. MDT is accelerating organic growth, highlighted by strong Cardiovascular segment performance and the spin-off of its Diabetes business (MiniMed, MMED). Intrinsic value estimates for MDT range from $59.93 (cautious) to $92.74 (optimistic), hinging on growth assumptions; current valuation appears fair to modestly undervalued. Upcoming Q4 results and Cardiac Ablation Solutions growth, especially Sphere-360 adoption, are critical for validating MDT’s improving outlook. Read the full article on Seeking Alpha
LLY
US$1,082.92
Eli Lilly
7D
6.3%
1Y
50.5%
Seeking Alpha • 6h

Eli Lilly: Big Upside Likely (Rating Upgrade)

Summary Eli Lilly is up by 12% since I last checked in April, but this is far from the potential upside for the stock right now. The company's latest results and upgraded guidance indicate at least 30-50% price upside, even considering the costs of its two latest acquisitions. There could be small corrections if the company continues to make more acquisitions, given Foundayo's slow ramp-up, but the bigger picture is overwhelmingly positive right now. Read the full article on Seeking Alpha
ABBV
US$215.40
AbbVie
7D
1.5%
1Y
17.6%
JNJ
US$231.29
Johnson & Johnson
7D
0.9%
1Y
51.7%
SYK
US$305.94
Stryker
7D
-4.8%
1Y
-19.6%
MRK
US$120.24
Merck
7D
6.4%
1Y
57.9%
ABT
US$85.68
Abbott Laboratories
7D
-3.1%
1Y
-35.1%
BMY
US$57.52
Bristol-Myers Squibb
7D
-1.7%
1Y
22.5%
Seeking Alpha • 22h

Bristol-Myers Squibb Is Quietly Building Its Next Growth Cycle

Summary Bristol-Myers Squibb Company sees its business tracking toward the upper end of full-year 2026 revenue and EPS guidance ranges. In my view, this primarily reflects strong demand for Breyanzi, Camzyos, and Reblozyl. Sales of this "trio" were $1.28 billion in Q1, up 42.2% year-over-year. Also, this Friday at ASCO 2026, Bristol-Myers Squibb will begin presenting full data on its experimental "gems," including izalontamab brengitecan and pumitamig. In this article, I presented 4 more factors explaining why its risk/reward profile remains attractive to income-oriented investors. Read the full article on Seeking Alpha
AMGN
US$336.06
Amgen
7D
1.4%
1Y
20.7%
ROIV
US$29.58
Roivant Sciences
7D
-8.7%
1Y
178.5%
REGN
US$627.74
Regeneron Pharmaceuticals
7D
-3.4%
1Y
6.1%
Narrative Update • May 26

REGN: Fair Outlook As LAG 3 Setback Reshapes Pipeline And Product Prospects

Analysts have trimmed their fair value estimate for Regeneron Pharmaceuticals to $641 from $730, reflecting lower assumed profit margins and a reduced future P/E multiple after the recent fianlimab LAG-3 trial setbacks and related cuts to price targets across the Street. Analyst Commentary Street research has turned more cautious on Regeneron following the failed Phase 3 LAG-3 melanoma trial for fianlimab, with a series of reduced price targets and several rating downgrades.
ISRG
US$418.55
Intuitive Surgical
7D
-6.8%
1Y
-24.2%
Narrative Update • May 25

ISRG: Medtech Reset And Recalls Will Shape Future Risk Reward Balance

Intuitive Surgical's updated analyst price target edges down by about $3 to $430.05, as analysts factor in a slightly lower P/E multiple and modest tweaks to growth and margin assumptions in light of recent sector wide medtech valuation resets. Analyst Commentary Recent Street research around Intuitive Surgical has tilted more cautious, with several bearish analysts cutting price targets to reflect what they describe as a reset in medtech valuations, a slower year for product launches, and broader worries about healthcare utilization.
PFE
US$26.21
Pfizer
7D
1.6%
1Y
13.1%
Narrative Update • May 25

PFE: Obesity And Oncology Pipeline Progress Will Drive Long-Term Upside Potential

Analysts have nudged Pfizer's implied fair value slightly higher to about $29.19 per share, reflecting a series of mostly modest price target increases, including Wolfe Research's move to $26. This comes alongside updated views on long term sales, COVID uncertainty, patent settlements around Vyndamax, and the recent Veppanu licensing, as well as GLP-1 and oncology pipeline commentary.
BSX
US$50.46
Boston Scientific
7D
-11.0%
1Y
-51.7%
EW
US$86.51
Edwards Lifesciences
7D
4.3%
1Y
12.8%
GILD
US$133.69
Gilead Sciences
7D
2.3%
1Y
23.3%