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U.S. Healthcare Sector Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies1389
  • 7D0.7%
  • 3M-1.4%
  • 1Y6.8%
  • YTD0.5%

The Healthcare industry has been flat over the last week, but UnitedHealth Group has lost 5.2%. The past year has been better, since the industry has gained 6.8% in that time. 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, 25 Feb 2026US$6.6tUS$3.3tUS$127.8b26.6x51.8x2x
Fri, 23 Jan 2026US$6.7tUS$3.2tUS$130.5b27.9x51x2.1x
Sun, 21 Dec 2025US$6.5tUS$3.2tUS$135.2b26.2x48x2x
Tue, 18 Nov 2025US$6.2tUS$3.2tUS$133.4b25.6x46.8x2x
Thu, 16 Oct 2025US$5.9tUS$3.1tUS$140.4b24.5x42.3x1.9x
Sat, 13 Sep 2025US$5.8tUS$3.1tUS$137.6b22.7x42.1x1.9x
Mon, 11 Aug 2025US$5.4tUS$3.1tUS$139.7b23.3x38.5x1.7x
Wed, 09 Jul 2025US$5.5tUS$3.0tUS$127.9b24.2x42.9x1.8x
Fri, 06 Jun 2025US$5.4tUS$3.0tUS$127.2b23.4x42.8x1.8x
Sun, 04 May 2025US$5.6tUS$2.7tUS$126.2b24.8x44.1x2x
Tue, 01 Apr 2025US$5.6tUS$2.6tUS$81.9b26.3x69x2.1x
Thu, 27 Feb 2025US$5.9tUS$2.6tUS$79.6b25.5x73.7x2.2x
Sat, 25 Jan 2025US$6.0tUS$2.9tUS$85.5b27.9x70.7x2.1x
Mon, 23 Dec 2024US$5.8tUS$2.9tUS$78.2b27.7x73.5x2x
Wed, 20 Nov 2024US$5.9tUS$2.9tUS$76.7b27.1x77.3x2x
Fri, 18 Oct 2024US$6.2tUS$2.8tUS$58.6b31.2x106.6x2.2x
Sun, 15 Sep 2024US$6.3tUS$2.8tUS$60.0b30.6x105.4x2.2x
Tue, 13 Aug 2024US$6.0tUS$2.8tUS$55.3b30.1x108.9x2.1x
Thu, 11 Jul 2024US$6.2tUS$2.8tUS$62.2b30x99x2.2x
Sat, 08 Jun 2024US$6.2tUS$2.8tUS$63.7b30x97.5x2.2x
Mon, 06 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.6x2.1x
Wed, 03 Apr 2024US$6.3tUS$2.8tUS$84.0b32.5x74.9x2.3x
Fri, 01 Mar 2024US$6.3tUS$2.8tUS$84.2b30.9x74.6x2.3x
Sun, 28 Jan 2024US$6.3tUS$2.8tUS$90.7b32x69.7x2.2x
Tue, 26 Dec 2023US$6.2tUS$2.8tUS$91.5b33.1x67.4x2.2x
Thu, 23 Nov 2023US$5.8tUS$2.8tUS$91.2b28x63.5x2.1x
Sat, 21 Oct 2023US$5.7tUS$2.8tUS$99.6b25.6x57.7x2.1x
Mon, 18 Sep 2023US$6.0tUS$2.8tUS$98.6b29.3x61x2.2x
Wed, 16 Aug 2023US$6.2tUS$2.8tUS$99.4b29x62.3x2.2x
Fri, 14 Jul 2023US$5.9tUS$2.7tUS$110.5b26.3x53.4x2.2x
Sun, 11 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 09 May 2023US$6.0tUS$2.7tUS$111.2b24.9x54.2x2.2x
Thu, 06 Apr 2023US$5.9tUS$2.5tUS$121.8b24.2x48.4x2.4x
Sat, 04 Mar 2023US$5.8tUS$2.5tUS$122.5b25.3x47.3x2.3x
Price to Earnings Ratio

47.3x


Total Market Cap: US$5.8tTotal Earnings: US$122.5bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.4x202420252026
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 51.8x which is lower than its 3-year average PE of 65.4x.
  • 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 Market0.50%
Healthcare0.72%
Life Sciences2.12%
Medical Equipment1.71%
Biotech1.36%
Pharma0.86%
Healthtech-0.17%
Healthcare Services-3.02%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry, which is trading close to its 3-year average PE ratio of 56.2x.
    • Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 7.4% 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 52% 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
JNJ Johnson & JohnsonUS$246.281.2%
+US$7.1b		48.3%PE22.1x
MRK MerckUS$123.931.9%
+US$5.9b		35.5%PE16.9x
LLY Eli LillyUS$1.04k0.6%
+US$5.4b		15.6%PE45.1x
IBRX ImmunityBioUS$11.5591.9%
+US$5.4b		281.2%PS100.4x
TMO Thermo Fisher ScientificUS$515.602.8%
+US$5.3b		-4.4%PE28.9x

Latest News

JNJ
US$246.28
Johnson & Johnson
7D
1.2%
1Y
48.3%
IBRX
US$11.55
ImmunityBio
7D
91.9%
1Y
281.2%
REGN
US$772.19
Regeneron Pharmaceuticals
7D
-2.7%
1Y
6.7%
SYK
US$381.33
Stryker
7D
3.3%
1Y
-2.3%
MRK
US$123.93
Merck
7D
1.9%
1Y
35.5%
CVS
US$74.18
CVS Health
7D
-5.1%
1Y
16.5%

CVS: Medicare Advantage And Great Healthcare Plan Will Support Future Margin Recovery

Analysts have trimmed their average price target on CVS Health by a few dollars, citing updated views on Medicare-related policy risks and a slightly lower future P/E assumption, even as they factor in modestly stronger profit margins over time. Analyst Commentary Recent research on CVS Health reflects a mix of optimism around long term earnings potential and caution around policy and reimbursement risk tied to Medicare and broader health reform proposals.
GILD
US$147.64
Gilead Sciences
7D
-4.9%
1Y
32.4%
LLY
US$1,042.15
Eli Lilly
7D
0.6%
1Y
15.6%

LLY: GLP-1 Obesity Leadership Will Drive Future Cardiometabolic And M&A Upside

Eli Lilly's analyst price targets have shifted higher, with our fair value estimate moving from $1,093.22 to $1,211.21, as analysts point to sustained GLP-1 obesity leadership, premium valuation support, and an expanding cardiometabolic pipeline as key drivers of their updated views. Analyst Commentary Recent Street research on Eli Lilly clusters around a few clear themes, with bullish analysts focusing on obesity leadership, cardiometabolic breadth, and M&A, while more cautious voices watch valuation and execution risk around the pipeline.
ABBV
US$228.44
AbbVie
7D
-1.9%
1Y
11.9%

ABBV: Future Returns Will Rely On Immunology Encore And Evolving Deal Optionality

Our updated AbbVie narrative reflects a modest price target increase to about $248 per share, as analysts point to potential operating leverage, room for P/E multiple expansion, and a pipeline of proof-of-concept and immunology programs that could support slightly higher revenue growth assumptions, even as margin expectations are trimmed. Analyst Commentary Recent research shows a mix of optimism and caution around AbbVie, with several firms adjusting price targets and ratings as they reassess execution risks, competitive pressures, and the potential impact of the pipeline on valuation.
RGC
US$25.87
Regencell Bioscience Holdings
7D
-18.1%
1Y
21,745.8%

Regencell Bioscience Holdings Ltd. (RGC) The TCM Biotech Lottery Ticket: High Hopes and Extreme Volatility

If you're looking for a stock that perfectly embodies the wild, speculative side of the market for your viewers, Regencell Bioscience (RGC) is it. As of late February 2026, this Hong Kong-headquartered, early-stage bioscience company is trading around $29.17 , following a period of mind-bending volatility where the stock surged thousands of percent over the past year.
ABT
US$114.58
Abbott Laboratories
7D
2.1%
1Y
-15.6%
TMO
US$515.60
Thermo Fisher Scientific
7D
2.8%
1Y
-4.4%

TMO: 2026 Tools Recovery And AI Partnerships Will Drive Earnings Power

Thermo Fisher Scientific's analyst price targets have moved higher by up to $117 per share, as analysts broadly lift their outlook on the company, citing refined growth and margin assumptions along with a series of recent target increases across the Street. Analyst Commentary Bullish analysts are largely aligned in lifting price targets for Thermo Fisher Scientific, pointing to what they see as an improving setup into 2026 and a company that is executing against refined growth and margin assumptions.
CI
US$281.00
Cigna Group
7D
-3.3%
1Y
-10.5%

CI: Higher Margin Outlook And Onsite Care Expansion Will Support Upside

Analysts have modestly lifted their price target on Cigna Group to $332.62 from $326.92, citing updated assumptions that combine slightly lower revenue growth with a higher profit margin and a future P/E of 15.62. What's in the News A class action lawsuit has been filed against Express Scripts, Cigna, and Evernorth, alleging a rebate diversion scheme that used an offshore entity, Ascent, to collect billions of dollars in kickbacks labeled as fees instead of passing rebates through to pharmacy benefit management clients, including the Plumbers' Welfare Fund.
ELV
US$327.14
Elevance Health
7D
-5.1%
1Y
-18.6%

ELV: Medicare Advantage Policy Path Will Support Future Margin Recovery Potential

Analysts have nudged their fair value estimate for Elevance Health slightly lower to $387.85 from $389.55, reflecting recent mixed price target changes and updated views on Medicare Advantage and broader managed care policy risks and opportunities. Analyst Commentary Recent research on Elevance Health reflects a mix of optimism about medium term growth drivers and caution around policy and utilization risks, which feeds directly into the modest trim to fair value.
UNH
US$273.95
UnitedHealth Group
7D
-5.2%
1Y
-41.8%

UnitedHealth Group's Future Revenue Grows by 3.59%: What Will It Mean?

UnitedHealth (UNH): A Data Giant Hidden in an Insurer's Crisis Investment Narrative – February 2026 Price Target (12m): $395.00 (+35% upside) Rating: Strong Buy (Contrarian) 1. The Core Thesis: The "Optum" Mispricing The market is currently valuing UnitedHealth through the narrow lens of a traditional insurer struggling with Medicare Advantage (MA) rate cuts and CMS regulatory headwinds for 2027.
AMGN
US$382.87
Amgen
7D
2.5%
1Y
21.3%

AMGN: Long Patent Expiries And Heavier Spending Will Pressure Future Earnings

Analysts have lifted their price targets on Amgen by about $12 to reflect updated views on fair value, profitability, and future P/E assumptions, while also factoring in a higher discount rate and lower projected revenue growth. Analyst Commentary Recent research on Amgen points to a split view, with several firms lifting price targets while others are turning more cautious.