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U.S. Healthcare Sector Analysis

UpdatedApr 08, 2026
DataAggregated Company Financials
Companies1390
  • 7D0.3%
  • 3M-8.5%
  • 1Y14.6%
  • YTD-5.5%

Over the last 7 days, the Healthcare industry has risen 2.9%, driven by gains from UnitedHealth Group of 14%. Meanwhile, AbbVie actually underperformed within the industry, shrinking 5.1% in the last week. This means that the industry has gained 13% over the past year. 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
Wed, 08 Apr 2026US$6.2tUS$3.3tUS$127.3b22.7x48.4x1.9x
Fri, 06 Mar 2026US$6.5tUS$3.3tUS$126.2b25.4x51.7x2x
Sun, 01 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Tue, 30 Dec 2025US$6.5tUS$3.2tUS$134.8b26.6x48.5x2x
Thu, 27 Nov 2025US$6.6tUS$3.2tUS$133.5b26.7x49.1x2.1x
Sat, 25 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.2x2x
Mon, 22 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.4x1.8x
Wed, 20 Aug 2025US$5.6tUS$3.1tUS$137.0b23.4x41.2x1.8x
Fri, 18 Jul 2025US$5.5tUS$3.0tUS$128.7b22.9x42.8x1.8x
Sun, 15 Jun 2025US$5.5tUS$3.0tUS$127.4b23.5x43.5x1.8x
Tue, 13 May 2025US$5.4tUS$3.0tUS$126.5b24.4x42.5x1.8x
Thu, 10 Apr 2025US$5.1tUS$2.6tUS$81.8b25.3x62.7x1.9x
Sat, 08 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.9x2.2x
Mon, 03 Feb 2025US$6.1tUS$2.9tUS$85.1b27.8x72x2.1x
Wed, 01 Jan 2025US$5.8tUS$2.9tUS$79.4b27.5x72.5x2x
Fri, 29 Nov 2024US$6.2tUS$2.9tUS$77.3b28.5x79.6x2.1x
Sun, 27 Oct 2024US$6.0tUS$2.8tUS$59.1b29.1x102.2x2.1x
Tue, 24 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Thu, 22 Aug 2024US$6.2tUS$2.8tUS$56.2b32x110.6x2.2x
Sat, 20 Jul 2024US$6.3tUS$2.8tUS$60.8b31.7x103.2x2.2x
Mon, 17 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.9x2.2x
Wed, 15 May 2024US$6.1tUS$2.8tUS$63.7b30.8x96x2.2x
Fri, 12 Apr 2024US$6.1tUS$2.8tUS$85.4b32.1x71.4x2.2x
Sun, 10 Mar 2024US$6.3tUS$2.8tUS$85.3b32.5x73.8x2.3x
Tue, 06 Feb 2024US$6.2tUS$2.8tUS$83.9b31.4x74.5x2.2x
Thu, 04 Jan 2024US$6.3tUS$2.8tUS$90.2b31.6x69.7x2.2x
Sat, 02 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x64.5x2.1x
Mon, 30 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Wed, 27 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.8x2.1x
Fri, 25 Aug 2023US$6.1tUS$2.8tUS$99.0b27.8x61.3x2.2x
Sun, 23 Jul 2023US$6.2tUS$2.7tUS$110.9b26.9x55.5x2.2x
Tue, 20 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Thu, 18 May 2023US$6.0tUS$2.7tUS$111.0b23.9x53.6x2.2x
Sat, 15 Apr 2023US$6.0tUS$2.5tUS$123.8b24.2x48.3x2.4x
Price to Earnings Ratio

48.3x


Total Market Cap: US$6.0tTotal Earnings: US$123.8bTotal 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 48.5x 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 Market1.21%
Healthcare0.33%
Healthcare Services7.19%
Life Sciences0.60%
Biotech-0.70%
Medical Equipment-0.75%
Pharma-0.83%
Healthtech-1.53%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.7x.
    • 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 40% 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
UNH UnitedHealth GroupUS$307.7313.7%
+US$33.7b		-44.4%PE23.2x
LLY Eli LillyUS$931.091.2%
+US$10.1b		28.2%PE40.4x
CVS CVS HealthUS$78.228.9%
+US$8.1b		15.7%PE56.3x
ELV Elevance HealthUS$311.836.5%
+US$4.2b		-27.6%PE12.1x
HCA HCA HealthcareUS$489.583.5%
+US$3.7b		47.4%PE16.1x

Latest News

AMGN
US$340.00
Amgen
7D
-3.4%
1Y
21.3%

Amgen's Thyroid Eye Disease Data Rocks Rival Viridian, Makes It The Better Buy

Apr 07
ELV
US$311.83
Elevance Health
7D
6.5%
1Y
-27.6%

Elevance Health: New Medicare Payment Rate A Gift, And The Chart Looks Good

Apr 07
BMY
US$57.67
Bristol-Myers Squibb
7D
-4.9%
1Y
8.7%
VRTX
US$431.86
Vertex Pharmaceuticals
7D
-3.3%
1Y
-8.6%
CNC
US$36.31
Centene
7D
10.9%
1Y
-41.8%
LLY
US$931.09
Eli Lilly
7D
1.2%
1Y
28.2%

LLY: Oral GLP-1 Launch And Capacity Expansion Will Drive Future Obesity Upside

Analysts have nudged Eli Lilly's price target slightly higher by $1, reflecting updated views on obesity and diabetes franchises following recent Foundayo approval commentary and comparative GLP-1 data. Analyst Commentary Recent research on Eli Lilly clusters around obesity and diabetes, pricing dynamics in GLP-1 therapies, and the implications of new product approvals and trial readouts for long term growth and valuation.
ABBV
US$206.37
AbbVie
7D
-5.1%
1Y
17.5%

AbbVie: A High 2026 Earnings Bar, But Shares Are Attractive On Valuation

Apr 06
CVS
US$78.22
CVS Health
7D
8.9%
1Y
15.7%
ISRG
US$452.47
Intuitive Surgical
7D
-1.8%
1Y
-1.1%

ISRG: Procedure Expansion And Sector Recovery Will Drive 2026 Upside

Analysts have adjusted Intuitive Surgical's price targets in a mixed but generally constructive way, with revisions ranging from cuts at UBS to $550 and $570 to higher targets at firms like Goldman Sachs at $714 and Bernstein at $740. These changes reflect updated views on growth, margins, and the valuation framework around a future P/E near 65.5x.
UNH
US$307.73
UnitedHealth Group
7D
13.7%
1Y
-44.4%

UnitedHealth: Why It's Still Not Too Late To Buy The Turnaround

Apr 05
PFE
US$27.10
Pfizer
7D
-3.5%
1Y
24.1%

PFE: Obesity And Oncology Pipeline Progress Will Drive Post LOE Rerating

Analysts have nudged Pfizer's implied fair value modestly higher to about $35.33 per share, citing recent price target increases of around $1 to $3 and research that highlights contributions from its GLP-1, oncology, and hematology pipelines, while also noting the long-term patent cliff and revenue uncertainty. Analyst Commentary Recent research on Pfizer shows a split view, with some firms highlighting long term headwinds from loss of exclusivity while others point to pipeline depth and business development as potential offsets.
HUM
US$197.15
Humana
7D
13.7%
1Y
-30.1%

HUM: Medicare Advantage Margin Recovery Will Drive Future Repricing Potential

Humana's updated analyst price target has shifted down from $348.00 to about $302.11, as analysts factor in lower target ranges across the Street, a higher discount rate, and cautious views on Medicare Advantage margins and earnings visibility. Analyst Commentary Recent Street research on Humana reflects a broadly cautious stance, with several firms cutting price targets and reassessing Medicare Advantage earnings power.
JNJ
US$238.41
Johnson & Johnson
7D
-2.5%
1Y
58.9%

Johnson & Johnson: Success In Multiple Myeloma Underpins $25B In Growth By 2030

Apr 04
MRK
US$119.28
Merck
7D
-0.8%
1Y
51.1%

MRK: M&A Execution Risks Around Terns And Revolution Will Restrain Future Upside

Analysts have nudged Merck's fair value estimate higher to approximately $101.30, reflecting updated assumptions for slightly stronger revenue growth, a modestly higher profit margin, and a marginally lower future P/E. This view is supported by a wave of recent price target increases into the $130 to $150 range and fresh Outperform or Overweight initiations on the stock.
CI
US$274.25
Cigna Group
7D
2.8%
1Y
-12.6%

CI: Leadership Transition And Onsite Care Expansion Will Drive Future Upside

Analysts have slightly refined their view on Cigna Group, trimming the price target by a fraction to $338.79 as updated assumptions for revenue growth, profit margins, and future P/E bring the model into closer alignment with their latest expectations. What's in the News Cigna Group plans a leadership transition, with David M.
HCA
US$489.58
HCA Healthcare
7D
3.5%
1Y
47.4%

HCA: Future Upside Will Center On Georgia Medicaid SDP Earnings Support

HCA Healthcare's analyst price targets have moved higher by a broad range that stretches into the mid $600s, reflecting analysts' updated models around Georgia's newly approved $1.9b Medicaid SDP program and potential efficiency gains from AI that could influence valuation multiples. Analyst Commentary Recent Street research around HCA Healthcare centers on two themes that matter for valuation: the newly approved Georgia Medicaid SDP program and potential AI driven efficiency gains.