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U.S. Healthcare Sector Analysis

UpdatedJul 04, 2026
DataAggregated Company Financials
Companies1404
  • 7D2.3%
  • 3M13.2%
  • 1Y23.5%
  • YTD6.8%

The Healthcare industry is up 2.3% in the last week, with Johnson & Johnson up 3.3%. This takes the industry's 12 month performance to a gain of 24%. Earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Jul 2026US$7.0tUS$3.3tUS$122.0b25.8x57.4x2.1x
Tue, 02 Jun 2026US$6.4tUS$3.3tUS$122.4b23.2x52.2x1.9x
Thu, 30 Apr 2026US$6.1tUS$3.3tUS$122.0b22.9x50x1.9x
Sat, 28 Mar 2026US$6.1tUS$3.3tUS$126.0b21.7x48.5x1.9x
Mon, 23 Feb 2026US$6.6tUS$3.3tUS$128.1b26.6x51.1x2x
Wed, 21 Jan 2026US$6.5tUS$3.2tUS$136.3b27.8x48x2x
Fri, 19 Dec 2025US$6.4tUS$3.2tUS$135.2b26.6x47.6x2x
Sun, 16 Nov 2025US$6.2tUS$3.2tUS$133.4b25.9x46.8x2x
Tue, 14 Oct 2025US$5.9tUS$3.1tUS$137.9b24.1x42.9x1.9x
Thu, 11 Sep 2025US$5.8tUS$3.1tUS$137.7b22.7x41.9x1.9x
Sat, 09 Aug 2025US$5.3tUS$3.1tUS$138.6b22.9x38.5x1.7x
Mon, 07 Jul 2025US$5.6tUS$3.0tUS$127.9b24.3x43.4x1.8x
Wed, 04 Jun 2025US$5.4tUS$3.0tUS$127.2b23.6x42.5x1.8x
Fri, 02 May 2025US$5.5tUS$2.7tUS$117.5b25.2x46.7x2.1x
Sun, 30 Mar 2025US$5.6tUS$2.6tUS$81.6b26.4x69.1x2.1x
Tue, 25 Feb 2025US$5.8tUS$2.6tUS$80.7b26.5x72.1x2.2x
Thu, 23 Jan 2025US$6.0tUS$2.9tUS$78.9b28.2x75.6x2x
Sat, 21 Dec 2024US$5.7tUS$2.9tUS$78.2b27.1x72.7x1.9x
Mon, 18 Nov 2024US$5.9tUS$2.9tUS$76.6b27.6x77.4x2x
Wed, 16 Oct 2024US$6.2tUS$2.8tUS$59.2b30x104.9x2.2x
Fri, 13 Sep 2024US$6.3tUS$2.8tUS$60.3b30.2x103.8x2.2x
Sun, 11 Aug 2024US$6.0tUS$2.8tUS$55.3b30.4x108.9x2.1x
Tue, 09 Jul 2024US$6.1tUS$2.8tUS$62.2b30.2x98.5x2.2x
Thu, 06 Jun 2024US$6.2tUS$2.8tUS$64.1b30.6x96x2.2x
Sat, 04 May 2024US$6.0tUS$2.8tUS$65.2b31.1x92.3x2.1x
Mon, 01 Apr 2024US$6.4tUS$2.8tUS$84.0b33.4x75.7x2.3x
Wed, 28 Feb 2024US$6.3tUS$2.8tUS$85.8b31x73.5x2.3x
Fri, 26 Jan 2024US$6.3tUS$2.8tUS$90.9b32x69.3x2.2x
Sun, 24 Dec 2023US$6.2tUS$2.8tUS$91.5b32.6x67.4x2.2x
Tue, 21 Nov 2023US$5.8tUS$2.8tUS$90.7b27.8x63.6x2x
Thu, 19 Oct 2023US$5.8tUS$2.8tUS$99.8b26x58.5x2.1x
Sat, 16 Sep 2023US$6.0tUS$2.8tUS$98.6b28.9x61.3x2.2x
Mon, 14 Aug 2023US$6.2tUS$2.8tUS$99.1b28.5x62.5x2.2x
Wed, 12 Jul 2023US$5.9tUS$2.7tUS$110.3b26.3x53.6x2.2x
Price to Earnings Ratio

53.6x


Total Market Cap: US$5.9tTotal Earnings: US$110.3bTotal Revenue: US$2.7tTotal 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 57.4x 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 grown 3.4% per year over the last three years.
  • Revenues for these companies have grown 6.9% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market1.63%
Healthcare2.29%
Healthtech8.89%
Biotech4.11%
Medical Equipment2.21%
Life Sciences2.07%
Healthcare Services2.03%
Pharma1.37%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 16.9%, which is higher than its past year's earnings growth of 5.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 55% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 14% 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$263.043.3%
+US$20.2b		68.6%PE30.1x
ABBV AbbVieUS$261.073.0%
+US$13.6b		37.9%PE128.3x
VRTX Vertex PharmaceuticalsUS$528.047.5%
+US$9.3b		14.9%PE30.9x
AMGN AmgenUS$374.154.4%
+US$8.5b		25.5%PE25.9x
ISRG Intuitive SurgicalUS$426.015.3%
+US$7.5b		-21.8%PE50.6x

Latest News

ELV
US$417.89
Elevance Health
7D
5.7%
1Y
20.1%
AMGN
US$374.15
Amgen
7D
4.4%
1Y
25.5%
VRTX
US$528.04
Vertex Pharmaceuticals
7D
7.5%
1Y
14.9%
UNH
US$425.36
UnitedHealth Group
7D
-0.6%
1Y
37.9%
ABBV
US$261.07
AbbVie
7D
3.0%
1Y
37.9%
JNJ
US$263.04
Johnson & Johnson
7D
3.3%
1Y
68.6%
Narrative Update • Jul 03

JNJ: Drug Pipeline Optimism Will Face Pressure From Medicare Pricing Rules

For Johnson & Johnson, the analyst price target has been revised higher. The updated fair value estimate has moved from about $181.77 to $212.24 as analysts factor in refreshed revenue growth assumptions, slightly adjusted discount and margin inputs, and a higher future P/E in light of recent research pointing to ongoing new drug momentum and broadly supportive earnings expectations.
SYK
US$326.54
Stryker
7D
-1.9%
1Y
-17.4%
Seeking Alpha • Jul 02

Stryker: The Reshaped Product Portfolio Will Drive Growth

Summary Stryker is a Dividend Aristocrat with 32 years of increases, robust cash flow, and a strong M&A-driven growth strategy. SYK's Q1 2026 results were impacted by a cybersecurity incident, but management maintained full-year guidance and expects normalization. The stock trades at ~21x 2026E EPS, below its 5-year average, suggesting undervaluation despite recent share price declines. I rate SYK a 'buy' due to its resilient business model, conservative payout, and platform-based portfolio diversification. Read the full article on Seeking Alpha
A
US$130.69
Agilent Technologies
7D
-3.9%
1Y
7.7%
MRNA
US$79.76
Moderna
7D
18.6%
1Y
161.6%
LLY
US$1,213.91
Eli Lilly
7D
0.5%
1Y
55.5%
ZTS
US$74.80
Zoetis
7D
-1.7%
1Y
-53.0%
EVMN
US$12.96
Evommune
7D
-48.5%
1Y
n/a
ZBH
US$87.47
Zimmer Biomet Holdings
7D
-6.0%
1Y
-6.6%
HTFL
US$27.97
HeartFlow
7D
-21.6%
1Y
n/a
ISRG
US$426.01
Intuitive Surgical
7D
5.3%
1Y
-21.8%
GMED
US$80.12
Globus Medical
7D
-7.1%
1Y
35.4%
Narrative Update • Jun 25

GMED: EPS Upside And Robotics Progress Will Balance Execution And Margin Risks

Globus Medical's analyst price target has moved by $2.82 as analysts weigh fresh evidence around slightly lower modeled revenue growth, higher projected profit margins, and a revised future P/E assumption following recent mixed target changes from Needham and Wells Fargo. Analyst Commentary Recent research commentary on Globus Medical reflects a mixed but cautious tone, as price targets are fine tuned around updated assumptions for revenue growth, profitability and the appropriate P/E range for the stock.