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 51.8x 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 54.4x. Analysts expect its future annual earnings growth (16.1%) to be largely in line with prior year's earnings growth.

U.S. Healthcare Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Fri, 29 May 2026	US$6.3t	US$3.3t	US$122.4b	23.2x	51.8x	1.9x
Sun, 26 Apr 2026	US$6.2t	US$3.3t	US$121.4b	24x	50.7x	1.9x
Tue, 24 Mar 2026	US$6.1t	US$3.3t	US$124.7b	22.4x	48.7x	1.9x
Thu, 19 Feb 2026	US$6.5t	US$3.3t	US$128.1b	26.6x	51.1x	2x
Sat, 17 Jan 2026	US$6.6t	US$3.2t	US$136.3b	27.3x	48.3x	2.1x
Mon, 15 Dec 2025	US$6.4t	US$3.2t	US$134.0b	26.3x	47.8x	2x
Wed, 12 Nov 2025	US$6.1t	US$3.2t	US$133.6b	26.4x	45.6x	1.9x
Fri, 10 Oct 2025	US$6.1t	US$3.1t	US$138.0b	24.3x	44.3x	2x
Sun, 07 Sep 2025	US$5.7t	US$3.1t	US$137.6b	23.1x	41.5x	1.8x
Tue, 05 Aug 2025	US$5.4t	US$3.1t	US$127.4b	23.2x	42.4x	1.8x
Thu, 03 Jul 2025	US$5.6t	US$3.0t	US$127.8b	24x	43.6x	1.8x
Sat, 31 May 2025	US$5.4t	US$3.0t	US$127.3b	23.1x	42.3x	1.8x
Mon, 28 Apr 2025	US$5.4t	US$2.7t	US$118.5b	24.9x	45.6x	2x
Wed, 26 Mar 2025	US$5.8t	US$2.6t	US$81.7b	27.1x	70.7x	2.2x
Fri, 21 Feb 2025	US$5.9t	US$2.6t	US$80.9b	26.7x	72.4x	2.2x
Sun, 19 Jan 2025	US$5.9t	US$2.9t	US$79.0b	27.7x	74.1x	2x
Tue, 17 Dec 2024	US$5.9t	US$2.9t	US$77.7b	28.4x	76x	2x
Thu, 14 Nov 2024	US$6.2t	US$2.9t	US$76.4b	27.9x	81.4x	2.1x
Sat, 12 Oct 2024	US$6.2t	US$2.8t	US$60.0b	29.8x	103x	2.2x
Mon, 09 Sep 2024	US$6.2t	US$2.8t	US$60.4b	30.5x	102.4x	2.2x
Wed, 07 Aug 2024	US$6.2t	US$2.9t	US$63.2b	30.3x	97.8x	2.2x
Fri, 05 Jul 2024	US$6.1t	US$2.8t	US$62.2b	29.9x	97.7x	2.2x
Sun, 02 Jun 2024	US$6.1t	US$2.8t	US$64.0b	29.9x	95.2x	2.2x
Tue, 30 Apr 2024	US$6.0t	US$2.8t	US$68.2b	31.5x	87.7x	2.1x
Thu, 28 Mar 2024	US$6.3t	US$2.8t	US$82.3b	32.4x	77.1x	2.3x
Sat, 24 Feb 2024	US$6.3t	US$2.8t	US$85.6b	31.1x	73.9x	2.3x
Mon, 22 Jan 2024	US$6.3t	US$2.8t	US$90.8b	32.4x	69.5x	2.2x
Wed, 20 Dec 2023	US$6.1t	US$2.8t	US$91.5b	32.7x	67.1x	2.2x
Fri, 17 Nov 2023	US$5.8t	US$2.8t	US$90.4b	27.7x	64.1x	2.1x
Sun, 15 Oct 2023	US$5.9t	US$2.8t	US$98.8b	25.7x	59.3x	2.1x
Tue, 12 Sep 2023	US$6.1t	US$2.8t	US$98.6b	27.8x	61.5x	2.2x
Thu, 10 Aug 2023	US$6.2t	US$2.8t	US$99.6b	28.2x	62.2x	2.2x
Sat, 08 Jul 2023	US$5.9t	US$2.7t	US$110.3b	26x	53.1x	2.1x
Mon, 05 Jun 2023	US$6.0t	US$2.7t	US$110.4b	25.2x	53.9x	2.2x


US Market	1.83%
Healthcare	1.81%
Life Sciences	7.85%
Healthtech	5.15%
Pharma	3.35%
Biotech	1.28%
Healthcare Services	0.55%
Medical Equipment	-2.53%

Company	Last Price	7D	1Y	Valuation
LLY Eli Lilly	US$1.13k	8.2% +US$75.9b	55.9%	PE39.8x
TMO Thermo Fisher Scientific	US$487.22	8.4% +US$14.1b	20.7%	PE26.4x
MRK Merck	US$119.89	3.5% +US$9.9b	56.9%	PE33.1x
ABBV AbbVie	US$218.63	1.9% +US$7.3b	17.8%	PE107.4x
GILD Gilead Sciences	US$136.22	4.4% +US$7.1b	22.6%	PE18.4x

Announcement • 6h

Gilead Sciences Shares Interim Phase 3 ASSURE Data Demonstrating High And Sustained ALP Normalization With Livdelzi (Seladelpar) In People With Primary Biliary Cholangitis

Gilead Sciences, Inc. shared new results from a post hoc analysis showing that Livdelzi (seladelpar) was associated with high and sustained rates of normalization of a key liver marker (ALP) in people living with primary biliary cholangitis (PBC). In an ongoing Phase 3 study, participants with elevated ALP levels (between 1.0 and 1.67×ULN) experienced reductions in ALP after treatment. These findings are highly relevant for people living with PBC with inadequately controlled disease based on elevated ALP levels—a population historically underrepresented in randomized clinical trials. ASSURE is an ongoing, open-label Phase 3 study evaluating the long-term safety and efficacy of Livdelzi in people living with PBC who previously participated in Livdelzi clinical trials. In an interim post hoc analysis, a high and sustained reduction in ALP was observed with Livdelzi treatment in participants with elevated baseline ALP levels between 1.0 and 1.67×ULN. Among 50 participants, 83% of evaluable participants achieved composite ALP normalization—defined as ALP =1×ULN with =15% reduction—at 12 months, and 74% achieved the same endpoint at 24 months, demonstrating a persistent response over two years of treatment. Mean ALP levels declined substantially from baseline and remained reduced through long-term follow-up. Improvements were also observed in other markers of cholestasis, including gamma-glutamyl transferase (GGT), and total bilirubin remained stable overall. This population included individuals with recognized risk factors for disease progression, including cirrhosis and younger age at diagnosis. Livdelzi was found to be generally well tolerated, with no treatment discontinuations due to adverse events with up to two years of follow-up and no new safety signals observed, consistent with previously reported findings. Separately, in an exploratory analysis across the full ASSURE population, 85% (n=77/91) of participants who achieved biochemical response at 12 months and were followed up through 3 years maintained or improved liver stiffness measurements. Additional interim analyses from the ASSURE and pivotal RESPONSE studies help support the long-term efficacy and safety profile of Livdelzi across a broad range of people living with PBC. Livdelzi (seladelpar) is approved for use for the treatment of primary biliary cholangitis (PBC) in combination with ursodeoxycholic acid (UDCA) in adults who have an inadequate response to UDCA alone, or as monotherapy in those unable to tolerate UDCA in the United States (U.S.), United Kingdom (UK), Australia and Israel, as well as the European Economic Area (EEA), Switzerland and Canada where it is marketed as Lyvdelzi. ASSURE is an open-label, long-term study to evaluate the safety and tolerability of Livdelzi in people with primary biliary cholangitis (PBC) who have already participated in other PBC clinical trials of Livdelzi. The ASSURE study includes participants from previous studies of Livdelzi in PBC, including the Phase 3 registrational RESPONSE study and legacy clinical trials. Legacy studies include the open label Phase 2 dose-ranging study (2 mg, 5 mg, or 10 mg Livdelzi), the open label Phase 3/4 long-term safety study (5 mg or 10 mg Livdelzi), the Phase 3 placebo-controlled ENHANCE study (5 mg or 10 mg Livdelzi vs placebo), and the PBC and hepatic impairment study for Livdelzi. RESPONSE was a pivotal Phase 3, double-blind, placebo-controlled clinical trial designed to evaluate the efficacy and safety of Livdelzi in adults with primary biliary cholangitis (PBC) who have shown inadequate response or intolerance to ursodeoxycholic acid (UDCA) defined by an ALP >= 1.67x ULN. The trial enrolled 193 participants across multiple sites worldwide. RESPONSE assessed the key biomarker of cholestasis alkaline phosphatase (ALP) and other parameters of liver function, as well as secondary endpoints including pruritus and other patient quality of life measurements. Participants in the RESPONSE trial received a daily oral dose of 10 mg of Livdelzi for 12 months. The trial aimed to address the high unmet need for effective second-line therapies for individuals with PBC. The approvals of Livdelzi were based primarily on data from the RESPONSE study. PBC is a chronic, autoimmune disease of the bile ducts that affects approximately 130,000 Americans. PBC is more common in women and causes liver damage that can progress to liver failure and result in the need for liver transplant, if left untreated. The most common symptoms of PBC are pruritus (chronic itch) and fatigue, which many people living with PBC can experience and may profoundly compromise quality of life. There is currently no cure for PBC, and treatment goals include reducing the risk of disease progression and reducing symptoms related to cholestasis (impaired bile flow), such as cholestatic itch. Treatment effect is primarily assessed through liver biochemical tests, including improvements in alkaline phosphatase (ALP), an important marker of disease activity associated with long-term outcomes in PBC. Livdelzi (seladelpar) is an oral PPAR-delta agonist, or delpar, for the treatment of primary biliary cholangitis (PBC). PPAR-delta is known to regulate key metabolic and liver disease pathways. Preclinical and clinical data indicate that Livdelzi has anticholestatic, anti-inflammatory, antipruritic, and antifibrotic effects. Clinical trial data demonstrate that Livdelzi improves key markers associated with disease activity, including biochemical response and alkaline phosphatase (ALP) normalization, with sustained effects observed over long-term follow-up. These findings are supported by clinical studies evaluating Livdelzi in hundreds of participants treated for up to five years. Livdelzi addresses ongoing unmet needs for people living with PBC, including those who remain inadequately controlled on existing therapies. Pruritus is a common symptom of PBC that can significantly impair quality of life, and prior studies have shown statistically significant and clinically meaningful improvements in pruritus with Livdelzi compared with placebo. Livdelzi is indicated for the treatment of primary biliary cholangitis (PBC) in combination with ursodeoxycholic acid (UDCA) in adults who have had an inadequate response to UDCA, or as monotherapy in patients unable to tolerate UDCA. The FDA approved this indication under accelerated approval based on a reduction of alkaline phosphatase (ALP). Improvement in survival or prevention of liver decompensation events have not been demonstrated. Continued approval for this indication may be contingent upon verification and description of clinical benefit in confirmatory trial(s). Use of Livdelzi is not recommended in patients who have or develop decompensated cirrhosis (e.g., ascites, variceal bleeding, hepatic encephalopathy).

U.S. Healthcare Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Vertex Pharmaceuticals Delivers Strong Q1 With Pipeline Progress and Key Pain Franchise Updates

Merck’s Calderasib and Keytruda Win FDA Breakthrough Status for KRAS G12C Mutant Lung Cancer

Eli Lilly and Company Presents New Data on Foundayo, Mounjaro and Retatrutide At the American Diabetes Association's 86Th Scientific Sessions

Thermo Fisher Scientific Unveils Orbitrap Tribrid Apex and Orbitrap Excedion Mass Spectrometers At ASMS 2026

Gilead Sciences Shares Interim Phase 3 ASSURE Data Demonstrating High And Sustained ALP Normalization With Livdelzi (Seladelpar) In People With Primary Biliary Cholangitis

Agilent Technologies Introduces Openlab Sync to Support Guided Digital Execution in the Laboratory

Intuitive Surgical, Inc. Announces Executive Changes

Johnson & Johnson Receives FDA Approval For Label Expansion Of TREMFYA To Include Inhibition Of Structural Joint Damage In Adults With Active Psoriatic Arthritis

Regeneron Pharmaceuticals, Inc.'s Inmazeb And Maftivimab Recommended For Investigational Use In Bundibugyo Ebolavirus Outbreak

Now 20% undervalued after recent price drop

Stryker Q1 Results Reflect Growth Opportunities and Reorganization Following Cyber Incident

AbbVie Receives U.S. FDA Approval For Decnupaz (Pivekimab Sunirine-Pvzy) For Treatment Of Adult Patients With Blastic Plasmacytoid Dendritic Cell Neoplasm

Abbott Expands Diabetes and Cancer Diagnostics Portfolio With European Launches and New Screening Data

Bristol-Myers Squibb Is Quietly Building Its Next Growth Cycle

Boston Scientific Unveils $2 Billion Buyback and $1.5 Billion MiRus Stake While Trimming Growth Outlook

DHR: Bioprocess Recovery And Masimo Deal Set To Support Premium Multiple