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U.S. Healthcare Sector Analysis

UpdatedApr 22, 2026
DataAggregated Company Financials
Companies1399
  • 7D-1.4%
  • 3M-7.2%
  • 1Y12.1%
  • YTD-4.8%

Over the last 7 days, the Healthcare industry has dropped 1.4%, driven by Johnson & Johnson declining 5.8%. In contrast, UnitedHealth Group has gained 10%. Over the past 12 months, the industry was up 12%. 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
Wed, 22 Apr 2026US$6.3tUS$3.3tUS$121.2b23.6x52x1.9x
Fri, 20 Mar 2026US$6.2tUS$3.3tUS$124.3b22.8x49.5x1.9x
Sun, 15 Feb 2026US$6.5tUS$3.3tUS$128.1b26.5x51.1x2x
Tue, 13 Jan 2026US$6.6tUS$3.2tUS$136.3b26.6x48.4x2.1x
Thu, 11 Dec 2025US$6.3tUS$3.2tUS$134.1b26.2x46.9x2x
Sat, 08 Nov 2025US$6.0tUS$3.2tUS$132.2b25.5x45.4x1.9x
Mon, 06 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.8x2x
Wed, 03 Sep 2025US$5.7tUS$3.1tUS$137.6b23.3x41.4x1.8x
Fri, 01 Aug 2025US$5.5tUS$3.1tUS$127.6b23.4x43.1x1.8x
Sun, 29 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Tue, 27 May 2025US$5.3tUS$3.0tUS$126.9b22.6x41.7x1.7x
Thu, 24 Apr 2025US$5.3tUS$2.7tUS$98.1b24.8x54x2x
Sat, 22 Mar 2025US$5.7tUS$2.6tUS$81.8b26.6x70x2.2x
Mon, 17 Feb 2025US$5.8tUS$2.6tUS$82.1b26.7x70.8x2.2x
Wed, 15 Jan 2025US$5.8tUS$2.9tUS$78.9b28.1x73.9x2x
Fri, 13 Dec 2024US$6.0tUS$2.9tUS$77.6b28.6x77x2x
Sun, 10 Nov 2024US$6.3tUS$2.9tUS$76.0b28.3x82.8x2.2x
Tue, 08 Oct 2024US$6.2tUS$2.8tUS$60.1b30.3x102.4x2.2x
Thu, 05 Sep 2024US$6.3tUS$2.8tUS$60.4b31.6x104.2x2.2x
Sat, 03 Aug 2024US$6.4tUS$2.9tUS$63.3b31.8x100.9x2.2x
Mon, 01 Jul 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Wed, 29 May 2024US$6.1tUS$2.8tUS$63.8b30.3x96.3x2.2x
Fri, 26 Apr 2024US$6.0tUS$2.8tUS$72.2b30.4x82.7x2.1x
Sun, 24 Mar 2024US$6.2tUS$2.8tUS$82.2b31.8x75.9x2.2x
Tue, 20 Feb 2024US$6.3tUS$2.8tUS$82.6b30.1x75.9x2.2x
Thu, 18 Jan 2024US$6.3tUS$2.8tUS$90.8b32x69.5x2.2x
Sat, 16 Dec 2023US$6.1tUS$2.8tUS$91.5b32.3x66.5x2.2x
Mon, 13 Nov 2023US$5.7tUS$2.8tUS$91.1b26.3x62.2x2x
Wed, 11 Oct 2023US$5.9tUS$2.8tUS$98.3b26.9x60.2x2.1x
Fri, 08 Sep 2023US$6.1tUS$2.8tUS$98.6b26.9x62x2.2x
Sun, 06 Aug 2023US$6.1tUS$2.8tUS$100.3b28.8x60.8x2.2x
Tue, 04 Jul 2023US$6.0tUS$2.7tUS$110.3b26.4x54.4x2.2x
Thu, 01 Jun 2023US$5.8tUS$2.7tUS$110.5b24.6x52.6x2.1x
Sat, 29 Apr 2023US$6.0tUS$2.5tUS$118.5b24.7x50.4x2.4x
Price to Earnings Ratio

50.4x


Total Market Cap: US$6.0tTotal Earnings: US$118.5bTotal 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 52.0x 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 9.6% 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 Market1.31%
Healthcare-1.38%
Healthtech6.35%
Healthcare Services4.35%
Life Sciences-0.00096%
Biotech-0.65%
Pharma-2.98%
Medical Equipment-3.94%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.4x.
    • Analysts are expecting annual earnings growth of 16.1%, which is higher than its past year's earnings growth of 7.5% 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 50% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 13% 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$346.0110.1%
+US$28.9b		-19.0%PE26.1x
SMMT Summit TherapeuticsUS$26.3826.5%
+US$4.3b		-3.5%PB31x
BNTX BioNTechUS$111.6013.4%
+US$3.3b		6.6%PS8.4x
ELV Elevance HealthUS$328.114.7%
+US$3.2b		-21.1%PE12.7x
BMY Bristol-Myers SquibbUS$59.392.3%
+US$2.7b		19.2%PE17.2x

Latest News

MDT
US$82.00
Medtronic
7D
-6.9%
1Y
-1.6%
HUM
US$217.36
Humana
7D
10.8%
1Y
-16.1%
SYK
US$327.30
Stryker
7D
-5.4%
1Y
-6.0%

SYK: Diversified Portfolio And Hospital Digitization Will Support 2026 Upside

Analysts have trimmed Stryker's fair value estimate by about $6 to $419, reflecting slightly higher discount rate assumptions, a modestly lower revenue growth outlook, and a slightly lower future P/E multiple, even as profit margin expectations are marginally higher. Analyst Commentary Recent Street research on Stryker shows a mix of optimism about the company’s long term growth drivers and caution around near term valuation and risk.
GILD
US$133.29
Gilead Sciences
7D
-5.1%
1Y
26.3%
RVMD
US$148.90
Revolution Medicines
7D
1.3%
1Y
304.0%
LLY
US$903.02
Eli Lilly
7D
-2.1%
1Y
9.1%

LLY: Obesity And Diabetes Platform Will Support Premium Positioning Beyond 2030

Analysts have slightly raised their average price targets on Eli Lilly in recent weeks, citing supportive trial updates in obesity and diabetes, favorable comparisons to competing GLP-1 therapies, and regulatory progress that they say supports high but unchanged fair value estimates of around $1,500. Analyst Commentary Recent Street research around Eli Lilly has been active, with a cluster of price target moves, rating changes, and product specific notes that give you a clearer sense of how professionals are framing the risk and reward.
MRK
US$112.56
Merck
7D
-6.2%
1Y
42.5%
UNH
US$346.01
UnitedHealth Group
7D
10.1%
1Y
-19.0%

Buy UnitedHealth Ahead Of Earnings (Preview)

Apr 20
BMY
US$59.39
Bristol-Myers Squibb
7D
2.3%
1Y
19.2%

BMY: Pipeline Progress And Sector Shifts Will Shape Future Risk Balance

Analysts have raised the implied fair value for Bristol-Myers Squibb to $63.04 from $59.91, reflecting a series of recent price target increases based on slightly less severe revenue contraction expectations, a modest improvement in projected profit margins, and support from pipeline-related research updates across multiple firms. Analyst Commentary Recent research has focused on how Bristol-Myers Squibb balances patent expirations on key products with progress in its pipeline and late stage programs, and how that mix feeds into valuation, execution risk, and potential growth beyond current revenue headwinds.
ABT
US$92.72
Abbott Laboratories
7D
-8.2%
1Y
-29.6%
JNJ
US$226.16
Johnson & Johnson
7D
-5.8%
1Y
43.4%

Johnson & Johnson: Why I See Downside Ahead

Apr 17
HIMS
US$29.76
Hims & Hers Health
7D
39.3%
1Y
17.4%

HIMS: Renewed GLP 1 Partnership Will Face Lingering Regulatory And Execution Risks

The analyst price target for Hims & Hers Health increases slightly to $24.31 from $24.15 as analysts factor in easing peptide restrictions, reduced litigation risk and the renewed Novo Nordisk partnership, along with updated assumptions for future P/E and profitability. Analyst Commentary Recent research on Hims & Hers Health clusters around two themes: renewed optimism tied to the Novo Nordisk partnership and easing peptide restrictions, and lingering concerns around GLP-1 execution, earnings quality, and legal or regulatory risk.
ELV
US$328.11
Elevance Health
7D
4.7%
1Y
-21.1%

ELV: 2026 CMS Sanction Resolution Will Support Medicare Advantage Margin Recovery

Analysts have made a modest downward adjustment to Elevance Health's implied fair value, reflecting recent cuts and mixed revisions to $350 oriented price targets, along with neutral to cautious views on Medicare policy and margin pressure. Analyst Commentary Recent Street research on Elevance Health shows a mix of cautious and constructive views, with several firms revisiting their models around Medicare policy, sanctions and long term guidance.
ABBV
US$205.12
AbbVie
7D
-2.4%
1Y
18.0%
BNTX
US$111.60
BioNTech
7D
13.4%
1Y
6.6%
SMMT
US$26.38
Summit Therapeutics
7D
26.5%
1Y
-3.5%