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

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 50.2x 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.

Which industries have driven the changes within the U.S. Healthcare sector?

Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 55.0x. Analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings growth of 9.9% per year.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sun, 10 May 2026	US$6.2t	US$3.3t	US$123.8b	22.9x	50.2x	1.9x
Tue, 07 Apr 2026	US$6.2t	US$3.3t	US$127.9b	22.5x	48.5x	1.9x
Thu, 05 Mar 2026	US$6.5t	US$3.3t	US$126.3b	25.6x	51.5x	2x
Sat, 31 Jan 2026	US$6.5t	US$3.2t	US$126.6b	27.8x	51.1x	2x
Mon, 29 Dec 2025	US$6.6t	US$3.2t	US$135.2b	26.5x	48.5x	2.1x
Wed, 26 Nov 2025	US$6.4t	US$3.2t	US$133.6b	26.7x	48.3x	2x
Fri, 24 Oct 2025	US$6.1t	US$3.1t	US$140.8b	25.5x	43.1x	2x
Sun, 21 Sep 2025	US$5.7t	US$3.1t	US$137.6b	23.9x	41.4x	1.8x
Tue, 19 Aug 2025	US$5.7t	US$3.1t	US$136.9b	23x	41.3x	1.8x
Thu, 17 Jul 2025	US$5.4t	US$3.0t	US$127.9b	23.3x	42.6x	1.8x
Sat, 14 Jun 2025	US$5.6t	US$3.0t	US$127.4b	23.5x	43.8x	1.8x
Mon, 12 May 2025	US$5.4t	US$3.0t	US$126.6b	24.2x	42.4x	1.8x
Wed, 09 Apr 2025	US$5.2t	US$2.6t	US$81.6b	24.1x	63.6x	2x
Fri, 07 Mar 2025	US$5.9t	US$2.6t	US$79.1b	27x	74.2x	2.2x
Sun, 02 Feb 2025	US$6.1t	US$2.9t	US$85.1b	27.8x	72x	2.1x
Tue, 31 Dec 2024	US$5.8t	US$2.9t	US$79.3b	27.5x	73.4x	2x
Thu, 28 Nov 2024	US$6.1t	US$2.9t	US$77.1b	28.5x	79.4x	2.1x
Sat, 26 Oct 2024	US$6.1t	US$2.9t	US$59.1b	29.1x	102.6x	2.1x
Mon, 23 Sep 2024	US$6.3t	US$2.8t	US$60.1b	30.1x	104.6x	2.2x
Wed, 21 Aug 2024	US$6.2t	US$2.8t	US$55.9b	31.9x	110.8x	2.2x
Fri, 19 Jul 2024	US$6.4t	US$2.8t	US$60.8b	31.3x	105.5x	2.3x
Sun, 16 Jun 2024	US$6.2t	US$2.8t	US$62.4b	29.9x	99.1x	2.2x
Tue, 14 May 2024	US$6.1t	US$2.8t	US$63.9b	30.6x	95.7x	2.2x
Thu, 11 Apr 2024	US$6.2t	US$2.8t	US$85.2b	32.1x	72.4x	2.2x
Sat, 09 Mar 2024	US$6.3t	US$2.8t	US$82.9b	32.5x	75.9x	2.3x
Mon, 05 Feb 2024	US$6.4t	US$2.8t	US$76.4b	31.9x	84.1x	2.3x
Wed, 03 Jan 2024	US$6.3t	US$2.8t	US$90.3b	32.5x	69.9x	2.2x
Fri, 01 Dec 2023	US$5.8t	US$2.8t	US$91.4b	28.4x	63.8x	2.1x
Sun, 29 Oct 2023	US$5.5t	US$2.8t	US$99.5b	24.1x	55.6x	2x
Tue, 26 Sep 2023	US$5.9t	US$2.8t	US$98.5b	27.9x	60.2x	2.1x
Thu, 24 Aug 2023	US$6.1t	US$2.8t	US$99.0b	28.4x	61.8x	2.2x
Sat, 22 Jul 2023	US$6.2t	US$2.7t	US$110.9b	26.9x	55.5x	2.2x
Mon, 19 Jun 2023	US$6.0t	US$2.7t	US$109.9b	26.4x	54.8x	2.2x
Wed, 17 May 2023	US$6.0t	US$2.7t	US$114.6b	24.3x	52x	2.2x


US Market	2.14%
Healthcare	-0.56%
Healthcare Services	2.63%
Life Sciences	1.79%
Biotech	1.19%
Healthtech	-0.18%
Pharma	-1.94%
Medical Equipment	-3.43%

Company	Last Price	7D	1Y	Valuation
LLY Eli Lilly	US$974.96	4.3% +US$36.0b	29.7%	PE34.4x
MRK Merck	US$112.30	2.9% +US$7.7b	44.6%	PE31x
CVS CVS Health	US$87.36	4.9% +US$4.7b	28.8%	PE38x
WAT Waters	US$350.49	13.3% +US$4.1b	-0.1%	PE76.5x
GILD Gilead Sciences	US$134.06	2.5% +US$4.0b	36.6%	PE19.6x

Announcement • 23h

Bristol Myers Squibb Receives European Commission Approval of Sotyktu for the Treatment of Active Psoriatic Arthritis in Adults

Bristol Myers Squibb announced that the European Commission has granted approval to Sotyktu (deucravacitinib), alone or in combination with methotrexate, for the treatment of active psoriatic arthritis (PsA) in adults who have had an inadequate response or who have been intolerant to a prior disease-modifying antirheumatic (DMARD) therapy. Sotyktu, a once-daily oral, selective tyrosine kinase 2 (TYK2) inhibitor, is the first TYK2 inhibitor to be approved for the treatment of active PsA in the European Union (EU). This EU approval is based on positive results from the pivotal POETYK PsA-1 and POETYK PsA-2 Phase 3 clinical trials, which evaluated the efficacy and safety of Sotyktu 6 mg once daily in adults with active PsA. In both trials, treatment with Sotyktu resulted in significant improvement in disease activity, as measured by American College of Rheumatology (ACR) 20 (the primary endpoint) and Minimal Disease Activity (MDA) (key secondary endpoint). The overall safety profile of Sotyktu observed in individuals with active psoriatic arthritis was generally consistent with the safety profile in those with plaque psoriasis. The most common adverse reactions (=1%) are upper respiratory infections, blood creatine phosphokinase increased, herpes simplex infections, oral ulcers, acneiform rash and folliculitis. Sotyktu is associated with the following special warnings and precautions for use: infections; pre-treatment evaluation for tuberculosis; malignancies; major adverse cardiovascular events, deep venous thrombosis and pulmonary embolism; immunizations; and excipients (lactose, sodium). In clinical trials, health-related quality of life was assessed by the 36-Item Short Form Health Survey (SF-36). Patients treated with Sotyktu showed improvements in SF-36 Physical Component Summary (PCS) score at Week 16 compared to placebo (key secondary endpoint), with improvements maintained in both POETYK PsA trials up to Week 52. Sotyktu was approved by the U.S. Food and Drug Administration (FDA) on March 6, 2026 for the treatment of adults with active PsA. Sotyktu was first approved in 2022 by the U.S. FDA for the treatment of adults with moderate-to-severe plaque psoriasis (PsO) who are candidates for systemic therapy or phototherapy. Per that approval, Sotyktu is not recommended for use with other potent immunosuppressants in the PsO population. In 2023, Sotyktu was approved by the European Commission for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy. Since then, multiple global regulatory authorities have approved Sotyktu for that indication. Sotyktu has five years of clinical efficacy and safety data in patients with moderate-to-severe plaque psoriasis. The Phase 3 Sotyktu psoriatic arthritis (PsA) program includes two Phase 3, multicenter, randomized, double-blind, placebo-controlled trials evaluating the efficacy and safety in adults 18 years of age and older with active PsA: POETYK PsA-1 (IM011-054; NCT04908202) and POETYK PsA-2 (IM011-055; NCT04908189). POETYK PsA-1 included 670 patients with active PsA who were not previously treated with a biologic disease-modifying antirheumatic drug (bDMARD naïve). POETYK PsA-2 included 624 patients with active PsA who were bDMARD naïve or had previously received TNFa inhibitor treatment. Patients met the CASPAR criteria for PsA, with =3 swollen and =3 tender joints and had an active or documented history of plaque psoriasis. Non-responder imputation (NRI) was used up to Week 16. After Week 16, observed data is shown with no imputation. N is number of randomized patients. a p=0.0002 b p=0.001 c Nominal p=0.0002 d Nominal p=0.02 * Data are shown for available subjects in the format of % (n/N) observed Minimal disease activity (MDA) = 5 out of 7 outcomes: tender joint count =1; swollen joint count =1; Psoriasis Activity and Severity Index =1 or body surface area =3%; patient pain visual analogue scale (VAS) =15; patient global disease activity VAS =20; Health Assessment Questionnaire Disability Index =0.5; tender entheseal points =1 Sotyktu is an oral, selective, tyrosine kinase 2 (TYK2) inhibitor with a unique mechanism of action. It is the first selective TYK2 inhibitor in clinical studies across moderate-to-severe plaque psoriasis and active psoriatic arthritis. Bristol Myers Squibb scientists designed Sotyktu to selectively target TYK2, thereby mediating the signaling of interleukin (IL)-23, IL-12 and Type 1 interferons (IFN), key cytokines involved in the pathogenesis of plaque psoriasis and psoriatic arthritis. Sotyktu achieves a high degree of selectivity by binding to the regulatory domain of TYK2, resulting in inhibition of TYK2 and mediation of its downstream functions. Sotyktu has been shown to have high selectivity for TYK2 at physiologically relevant concentrations and has not been shown to inhibit JAK1, JAK2 or JAK3 in vitro assays. The precise mechanism linking inhibition of TYK2 enzyme to therapeutic effectiveness is not currently known. Sotyktu is approved in numerous countries around the world for the treatment of adults with moderate-to-severe plaque psoriasis and is also approved in the United States for the treatment of active psoriatic arthritis in adults. The efficacy and safety of Sotyktu in patients with moderate-to-severe plaque psoriasis were evaluated in POETYK PSO-1 and POETYK PSO-2, multi-national, randomized, double-blind, placebo- and active comparator-controlled 52-week Phase 3 studies. In total, 664 patients were enrolled in POETYK PSO-1, and 1,020 patients were enrolled in POETYK PSO-2. All participants had moderate-to-severe plaque psoriasis and were candidates for phototherapy or systemic therapy. SOTYKTU (deucravacitinib) is indicated for the treatment of moderate-to-severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. SOTYKTU is not recommended for use in combination with other potent immunosuppressants. SOTYKTU is indicated for the treatment of active psoriatic arthritis in adults. SOTYKTU is contraindicated in patients with a history of hypersensitivity reaction to deucravacitinib or to any of the excipients in SOTYKTU. SOTYKTU may increase the risk of infections. Serious infections have been reported in patients who received SOTYKTU. The most common serious infections reported with SOTYKTU included pneumonia and COVID-19. Avoid use of SOTYKTU in patients with an active or serious infection. Consider the risks and benefits of SOTYKTU prior to initiating treatment in patients: with chronic or recurrent infection; who have been exposed to tuberculosis; with a history of a serious or an opportunistic infection; with underlying conditions that may predispose them to infection.

Announcement • May 07

AbbVie Inc. Presents New Long-Term Data For Skyrizi And Rinvoq In Inflammatory Bowel Diseases

AbbVie announced the presentation of new data across its gastroenterology portfolio at the 2026 Digestive Disease Week (DDW) Annual Meeting, May 2–5 in Chicago. AbbVie will present 18 abstracts, including real-world evidence and long-term findings for SKYRIZI (risankizumab-rzaa) and RINVOQ (upadacitinib) in Crohn's disease and ulcerative colitis. A 52-week follow-up of adults with moderately to severely active Crohn's disease treated with risankizumab from the ASPIRE-CD study showed rapid and sustained improvements in abdominal pain, bowel urgency and liquid/soft stools. Among patients with extraintestinal manifestations of arthritis and skin conditions, 25% and 46%, respectively, reported experiencing relief at Week 52. By Week 52, the use of corticosteroids decreased from 34% at baseline to 7%, and over-the-counter therapies had decreased from 72% at baseline to 49%. In an analysis of health-related quality of life and treatment satisfaction after initiating risankizumab in patients enrolled in the ASPIRE-CD study, 77% reported improvement in life enjoyment by Week 52. Patients had improved general wellbeing, including improved sexual health and improved work productivity and daily activity levels one year after starting risankizumab. Overall satisfaction with Crohn's disease treatments improved among all patients (from 50% at baseline to nearly 87% at Week 52), particularly patients who were still being treated with risankizumab at Week 52 (92% satisfaction). A real-world study of US claims data analyzed the switch rates over a 24-month period among patients with Crohn's disease initiating a new biologic therapy. It found the switch rate was 14% for risankizumab, compared with 21% for ustekinumab, 30% for vedolizumab, 33% for infliximab, and 36% for adalimumab. A retrospective analysis of US claims data found that among patients with Crohn's disease or ulcerative colitis treated with a biologic therapy, patients who were switched to upadacitinib had a 31% lower odds of hospitalization and 26% lower odds of emergency department visits than those who increased average weekly dose of the biologic therapy. Among patients with Perianal Fistulizing Crohn's disease, in two Phase 3 trials, those who responded to upadacitinib 45 mg were re-randomized to receive maintenance treatment with upadacitinib (15 mg or 30 mg) or placebo for 52 weeks. In this post-hoc analysis, upadacitinib-treated patients showed endoscopic improvements through 52 weeks, regardless of fistula response, as demonstrated by reductions in Simple Endoscopic Score for Crohn's disease. Majority of these patients were without an adequate response to anti-tumor necrosis factor therapy.

U.S. Healthcare Sector Analysis

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