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U.S. Healthcare Sector Analysis

UpdatedMar 18, 2026
DataAggregated Company Financials
Companies1387
  • 7D-2.4%
  • 3M-3.9%
  • 1Y4.0%
  • YTD-5.0%

Over the last 7 days, the Healthcare industry has dropped 2.4%, driven by Eli Lilly declining 7.1%. This takes the industry's 12 month performance to a gain of 4.0%. Looking forward, 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, 18 Mar 2026US$6.3tUS$3.3tUS$124.3b24.5x50.5x1.9x
Fri, 13 Feb 2026US$6.5tUS$3.3tUS$126.7b25.8x51.2x2x
Sun, 11 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Tue, 09 Dec 2025US$6.4tUS$3.2tUS$133.6b25.9x47.7x2x
Thu, 06 Nov 2025US$6.0tUS$3.2tUS$133.5b25.5x44.8x1.9x
Sat, 04 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.2x1.9x
Mon, 01 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Wed, 30 Jul 2025US$5.6tUS$3.1tUS$125.1b24.2x44.5x1.8x
Fri, 27 Jun 2025US$5.5tUS$3.0tUS$127.5b24.5x43.1x1.8x
Sun, 25 May 2025US$5.3tUS$3.0tUS$126.9b22.8x41.7x1.7x
Tue, 22 Apr 2025US$5.3tUS$2.6tUS$97.8b23.7x54x2x
Thu, 20 Mar 2025US$5.7tUS$2.6tUS$75.2b26.9x75.9x2.2x
Sat, 15 Feb 2025US$5.9tUS$2.6tUS$82.1b26.7x71.5x2.2x
Mon, 13 Jan 2025US$5.8tUS$2.9tUS$78.7b27.6x74.2x2x
Wed, 11 Dec 2024US$6.1tUS$2.9tUS$77.5b28.8x78.4x2.1x
Fri, 08 Nov 2024US$6.2tUS$2.9tUS$71.7b28.3x86.6x2.1x
Sun, 06 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Tue, 03 Sep 2024US$6.3tUS$2.8tUS$60.4b32.2x105x2.2x
Thu, 01 Aug 2024US$6.4tUS$2.9tUS$69.4b32.1x91.6x2.2x
Sat, 29 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Mon, 27 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Wed, 24 Apr 2024US$6.0tUS$2.8tUS$84.4b30.9x71.5x2.2x
Fri, 22 Mar 2024US$6.3tUS$2.8tUS$82.1b32.5x76.3x2.3x
Sun, 18 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Tue, 16 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Thu, 14 Dec 2023US$6.0tUS$2.8tUS$91.5b31.7x65.9x2.1x
Sat, 11 Nov 2023US$5.6tUS$2.8tUS$91.0b26.5x62x2x
Mon, 09 Oct 2023US$5.9tUS$2.8tUS$98.3b26.7x59.7x2.1x
Wed, 06 Sep 2023US$6.0tUS$2.8tUS$98.6b27x61.2x2.2x
Fri, 04 Aug 2023US$6.0tUS$2.8tUS$94.7b29.5x63.2x2.2x
Sun, 02 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Tue, 30 May 2023US$5.8tUS$2.7tUS$110.5b24.4x52.6x2.1x
Thu, 27 Apr 2023US$5.9tUS$2.5tUS$117.2b24.5x50.1x2.4x
Sat, 25 Mar 2023US$5.7tUS$2.5tUS$124.1b23.6x45.7x2.3x
Price to Earnings Ratio

45.7x


Total Market Cap: US$5.7tTotal Earnings: US$124.1bTotal 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 50.5x 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 Market-0.97%
Healthcare-2.41%
Healthcare Services-0.048%
Medical Equipment-0.87%
Healthtech-1.31%
Life Sciences-2.71%
Biotech-2.97%
Pharma-3.69%
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 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$287.571.9%
+US$4.7b		-42.9%PE21.7x
ELV Elevance HealthUS$295.754.6%
+US$2.9b		-32.2%PE11.5x
BNTX BioNTechUS$94.8613.1%
+US$2.6b		-4.1%PS6.9x
BSX Boston ScientificUS$71.201.8%
+US$1.8b		-28.2%PE36.5x
PFE PfizerUS$27.451.1%
+US$1.7b		4.3%PE20.2x

Latest News

UNH
US$287.57
UnitedHealth Group
7D
1.9%
1Y
-42.9%
AMGN
US$361.13
Amgen
7D
-3.8%
1Y
13.3%

AMGN: Fair Outlook Balances Patent Expiries With Late Stage Pipeline Potential

The Analyst Price Target for Amgen has been updated from $327.74 to $350.03 as analysts factor in recent price target increases tied to stronger near term commercial execution, added value from key Phase 3 pipeline assets, and a shift toward discounted cash flow based models that emphasize improved margin assumptions and a slightly lower discount rate. Analyst Commentary Recent Street commentary around Amgen reflects a mix of optimism about the current execution and pipeline, alongside ongoing debate about valuation, product risks, and long term earnings durability.
LLY
US$930.35
Eli Lilly
7D
-7.1%
1Y
13.1%
HCA
US$509.87
HCA Healthcare
7D
-5.2%
1Y
54.4%
SNDA
US$36.26
Sonida Senior Living
7D
-2.4%
1Y
51.8%
GILD
US$144.40
Gilead Sciences
7D
-2.8%
1Y
31.0%
PFE
US$27.45
Pfizer
7D
1.1%
1Y
4.3%
JNJ
US$238.11
Johnson & Johnson
7D
-2.3%
1Y
45.0%
MCK
US$941.89
McKesson
7D
1.4%
1Y
42.4%

MCK: Biosimilar Optionality And Premium Safe Haven Position Will Shape Future Returns

Analysts have increased their McKesson price target from $980.40 to $995.27, citing higher Street targets that reflect new biosimilar optionality and continued interest in the stock as a perceived healthcare safe haven, even at a premium valuation. Analyst Commentary Bullish analysts are leaning into McKesson's role as a perceived healthcare safe haven and the new biosimilar angle, using these themes to justify higher valuation levels than the recent three year average.
BNTX
US$94.86
BioNTech
7D
13.1%
1Y
-4.1%
BSX
US$71.20
Boston Scientific
7D
1.8%
1Y
-28.2%
VRTX
US$462.49
Vertex Pharmaceuticals
7D
-7.3%
1Y
-9.7%
ABBV
US$219.76
AbbVie
7D
-3.2%
1Y
2.8%

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.
ELAN
US$25.18
Elanco Animal Health
7D
6.4%
1Y
132.9%
TMO
US$472.71
Thermo Fisher Scientific
7D
-5.5%
1Y
-9.4%

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.
ELV
US$295.75
Elevance Health
7D
4.6%
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.