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U.S. Healthcare Sector Analysis

UpdatedFeb 03, 2026
DataAggregated Company Financials
Companies1389
  • 7D-2.0%
  • 3M7.6%
  • 1Y5.7%
  • YTD0.2%

Over the last 7 days, the Healthcare industry has dropped 2.0%, driven by a pullback from UnitedHealth Group of 19%. Over the past 12 months, the industry was up 5.7%. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 03 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Thu, 01 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x48.1x2x
Sat, 29 Nov 2025US$6.6tUS$3.2tUS$133.5b26.5x49.1x2.1x
Mon, 27 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.3x2x
Wed, 24 Sep 2025US$5.7tUS$3.1tUS$137.6b23.8x41.5x1.8x
Fri, 22 Aug 2025US$5.7tUS$3.1tUS$137.2b23.3x41.4x1.8x
Sun, 20 Jul 2025US$5.4tUS$3.0tUS$128.8b22.7x42x1.8x
Tue, 17 Jun 2025US$5.5tUS$3.0tUS$127.4b23.6x43.5x1.8x
Thu, 15 May 2025US$5.4tUS$3.0tUS$125.9b23.5x42.5x1.8x
Sat, 12 Apr 2025US$5.2tUS$2.6tUS$81.8b24.9x63.8x2x
Mon, 10 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.7x2.2x
Wed, 05 Feb 2025US$6.1tUS$3.0tUS$93.6b27.6x65.4x2.1x
Fri, 03 Jan 2025US$5.8tUS$2.9tUS$79.4b27.2x72.6x2x
Sun, 01 Dec 2024US$6.2tUS$2.9tUS$77.3b28.8x79.8x2.1x
Tue, 29 Oct 2024US$6.0tUS$2.8tUS$59.1b29.2x102.2x2.1x
Thu, 26 Sep 2024US$6.3tUS$2.8tUS$60.1b29.2x104x2.2x
Sat, 24 Aug 2024US$6.2tUS$2.8tUS$56.4b31.6x110.4x2.2x
Mon, 22 Jul 2024US$6.3tUS$2.8tUS$60.7b31.7x103.5x2.2x
Wed, 19 Jun 2024US$6.2tUS$2.8tUS$62.5b29.9x98.6x2.2x
Fri, 17 May 2024US$6.2tUS$2.8tUS$64.2b30.4x97.1x2.2x
Sun, 14 Apr 2024US$6.1tUS$2.8tUS$85.3b31.4x71.2x2.2x
Tue, 12 Mar 2024US$6.3tUS$2.8tUS$85.3b32.2x73.6x2.3x
Thu, 08 Feb 2024US$6.2tUS$2.8tUS$76.8b30.8x80.1x2.2x
Sat, 06 Jan 2024US$6.3tUS$2.8tUS$90.0b30.9x70.1x2.2x
Mon, 04 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x65x2.1x
Wed, 01 Nov 2023US$5.6tUS$2.8tUS$99.1b24.2x56.5x2x
Fri, 29 Sep 2023US$5.9tUS$2.8tUS$98.6b27.5x59.8x2.1x
Sun, 27 Aug 2023US$6.1tUS$2.8tUS$99.0b27.7x61.6x2.2x
Tue, 25 Jul 2023US$6.1tUS$2.7tUS$110.8b27x55.3x2.2x
Thu, 22 Jun 2023US$6.0tUS$2.7tUS$110.0b26.3x54.7x2.2x
Sat, 20 May 2023US$6.0tUS$2.7tUS$110.8b24.2x53.9x2.2x
Mon, 17 Apr 2023US$6.0tUS$2.5tUS$123.8b24.2x48.3x2.4x
Wed, 15 Mar 2023US$5.6tUS$2.5tUS$122.8b24.5x45.8x2.3x
Fri, 10 Feb 2023US$5.9tUS$2.4tUS$131.8b23.6x44.8x2.4x
Price to Earnings Ratio

44.8x


Total Market Cap: US$5.9tTotal Earnings: US$131.8bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.2x202420252026
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 51.2x which is lower than its 3-year average PE of 65.2x.
  • 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 9.7% 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-0.35%
Healthcare-2.02%
Pharma1.38%
Biotech-0.54%
Medical Equipment-1.26%
Life Sciences-5.62%
Healthtech-9.22%
Healthcare Services-10.20%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.4x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 8.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 22% over the next 5 years.
  • However this is lower than its past earnings growth rate of 56% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 12% 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$230.754.2%
+US$22.3b		51.9%PE20.7x
MRK MerckUS$113.375.6%
+US$14.8b		13.6%PE14.8x
ABBV AbbVieUS$225.642.2%
+US$8.6b		18.7%PE169.8x
GILD Gilead SciencesUS$142.893.7%
+US$6.3b		45.2%PE21.9x
HCA HCA HealthcareUS$496.855.2%
+US$5.6b		48.6%PE16.7x

Latest News

UNH
US$285.59
UnitedHealth Group
7D
-18.8%
1Y
-47.9%

UNH: CMS Rate Pressure And Policy Probes Will Shape Outlook

Analysts have trimmed their price targets on UnitedHealth Group, which is reflected in our fair value estimate moving from US$307.82 to US$284.09, as they reassess revenue growth and profit margin assumptions in light of recent CMS rate notices and updated Street research. Analyst Commentary Recent Street research around UnitedHealth Group has turned more cautious, with a series of lower price targets and guarded commentary around policy risk and execution in government programs.
ELV
US$341.83
Elevance Health
7D
-9.3%
1Y
-15.6%
SYK
US$368.14
Stryker
7D
3.1%
1Y
-5.9%
MRK
US$113.37
Merck
7D
5.6%
1Y
13.6%

The Oncology Anchor: Why Merck’s 46% Discount Defies the Keytruda Cliff

Merck’s 2026 narrative is a high-stakes drama centered on Keytruda , the world’s top-selling cancer drug. For years, the market has treated Merck like a "one-trick pony" due to the looming 2028 "patent cliff," where Keytruda will lose its legal protection and face generic competition.
TMO
US$581.77
Thermo Fisher Scientific
7D
-7.2%
1Y
-2.0%
HCA
US$496.85
HCA Healthcare
7D
5.2%
1Y
48.6%
JNJ
US$230.75
Johnson & Johnson
7D
4.2%
1Y
51.9%
DHR
US$223.42
Danaher
7D
-5.6%
1Y
4.3%
TEVA
US$35.52
Teva Pharmaceutical Industries
7D
10.5%
1Y
104.7%
GILD
US$142.89
Gilead Sciences
7D
3.7%
1Y
45.2%
ISRG
US$496.73
Intuitive Surgical
7D
-6.1%
1Y
-14.1%
HUM
US$187.20
Humana
7D
-29.0%
1Y
-36.1%
ABBV
US$225.64
AbbVie
7D
2.2%
1Y
18.7%
LLY
US$1,044.13
Eli Lilly
7D
-1.8%
1Y
28.8%

LLY: Government GLP 1 Pricing Deals Will Pressure Obesity Margins

Analysts have nudged their price targets on Eli Lilly slightly higher, citing continued confidence in the obesity and GLP 1 franchise, supportive government pricing agreements, and potential upside from acquisitions and pipeline catalysts, even as some firms fine tune their models and individual targets by low single digit amounts such as Guggenheim's recent US$2 trim. Analyst Commentary Recent research on Eli Lilly has been dominated by optimism around obesity treatments and government pricing agreements, but there is also a pocket of caution that is worth paying attention to if you are thinking about valuation, execution and long term growth risk.
PFE
US$26.66
Pfizer
7D
3.0%
1Y
1.8%

PFE: Loss Of Exclusivity And Obesity Deal Costs Will Pressure Shares

Analysts have reduced their fair value estimate for Pfizer from $24.00 to $23.00 per share, citing lower revenue and margin assumptions, a slightly higher discount rate, and cautious views on patent expiries, while still noting ongoing interest in its pipeline and licensing deals. Analyst Commentary Recent Street research around Pfizer has been mixed, with some firms highlighting long term opportunities in areas like obesity and licensing, while others are stressing near term execution and patent expiry risks.
CVS
US$75.42
CVS Health
7D
-10.1%
1Y
34.8%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Earnings Rebound

Analysts have nudged their average price targets for CVS Health higher, with increases such as Bernstein moving to $91 from $87, BofA to $100 from $89, and RBC to $93 from $81. These changes reflect views that recent policy developments and Q3 results support a steadier outlook for government managed care earnings and potential catalysts in Medicare Advantage.