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U.S. Healthcare Sector Analysis

UpdatedJul 23, 2026
DataAggregated Company Financials
Companies1397
  • 7D-0.1%
  • 3M8.9%
  • 1Y18.5%
  • YTD3.4%

The Healthcare is pretty flat in the last 7 days, but Johnson & Johnson has stood out, gaining 3.5%. The past year has been better, since the industry has gained 18% in that time. Looking forward, 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
Thu, 23 Jul 2026US$6.8tUS$3.3tUS$123.7b25.3x55.1x2.1x
Sat, 20 Jun 2026US$6.4tUS$3.3tUS$121.7b23.3x52.4x1.9x
Mon, 18 May 2026US$6.2tUS$3.3tUS$122.3b22.6x50.5x1.9x
Wed, 15 Apr 2026US$6.3tUS$3.3tUS$127.2b23.4x49.3x1.9x
Fri, 13 Mar 2026US$6.4tUS$3.3tUS$124.5b24.2x51.1x1.9x
Sun, 08 Feb 2026US$6.6tUS$3.3tUS$125.4b27.1x52.4x2x
Tue, 06 Jan 2026US$6.5tUS$3.2tUS$135.6b25.8x47.8x2x
Thu, 04 Dec 2025US$6.4tUS$3.2tUS$133.5b25.7x48x2x
Sat, 01 Nov 2025US$5.9tUS$3.1tUS$134.3b26.3x44.3x1.9x
Mon, 29 Sep 2025US$5.7tUS$3.1tUS$137.6b23.6x41.1x1.8x
Wed, 27 Aug 2025US$5.7tUS$3.1tUS$137.2b23.5x41.2x1.8x
Fri, 25 Jul 2025US$5.6tUS$3.0tUS$129.1b25.1x43.4x1.8x
Sun, 22 Jun 2025US$5.5tUS$3.0tUS$127.4b23.7x42.8x1.8x
Tue, 20 May 2025US$5.4tUS$3.0tUS$126.1b24x42.9x1.8x
Thu, 17 Apr 2025US$5.4tUS$2.6tUS$90.0b24.8x59.5x2x
Sat, 15 Mar 2025US$5.6tUS$2.6tUS$74.8b26.6x74.8x2.1x
Mon, 10 Feb 2025US$5.9tUS$2.6tUS$89.8b26.5x65.5x2.2x
Wed, 08 Jan 2025US$5.8tUS$2.9tUS$79.3b27.7x73.4x2x
Fri, 06 Dec 2024US$6.2tUS$2.9tUS$77.4b28.7x79.5x2.1x
Sun, 03 Nov 2024US$6.2tUS$2.9tUS$71.3b28.4x86.4x2.1x
Tue, 01 Oct 2024US$6.2tUS$2.9tUS$70.6b30.3x87.9x2.1x
Thu, 29 Aug 2024US$6.3tUS$2.8tUS$54.0b31.6x116.3x2.2x
Sat, 27 Jul 2024US$6.3tUS$2.8tUS$61.0b31.6x104x2.2x
Mon, 24 Jun 2024US$6.2tUS$2.8tUS$62.5b30x99.2x2.2x
Wed, 22 May 2024US$6.2tUS$2.8tUS$64.2b30.7x96.7x2.2x
Fri, 19 Apr 2024US$5.9tUS$2.8tUS$84.4b30x70.2x2.1x
Sun, 17 Mar 2024US$6.2tUS$2.8tUS$84.5b31.5x73.7x2.2x
Tue, 13 Feb 2024US$6.2tUS$2.8tUS$76.4b32x81.2x2.2x
Thu, 11 Jan 2024US$6.4tUS$2.8tUS$90.1b32.3x70.9x2.3x
Sat, 09 Dec 2023US$6.0tUS$2.8tUS$91.4b29.4x65.1x2.1x
Mon, 06 Nov 2023US$5.7tUS$2.8tUS$88.4b26.7x65x2x
Wed, 04 Oct 2023US$5.8tUS$2.8tUS$98.2b26.5x59.2x2.1x
Fri, 01 Sep 2023US$6.1tUS$2.8tUS$98.8b27.7x61.6x2.2x
Sun, 30 Jul 2023US$6.1tUS$2.8tUS$115.6b28x52.5x2.2x
Price to Earnings Ratio

52.5x


Total Market Cap: US$6.1tTotal Earnings: US$115.6bTotal Revenue: US$2.8tTotal 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 55.1x 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 grown 2.3% per year over the last three years.
  • Revenues for these companies have grown 6.5% 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 Market-1.35%
Healthcare-0.13%
Pharma1.65%
Healthcare Services0.78%
Medical Equipment-1.00%
Biotech-1.43%
Life Sciences-3.69%
Healthtech-5.79%
Industry PE
  • Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 56.0x.
    • Analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings growth of 10.6% 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 59% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 15% 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$255.633.5%
+US$20.7b		51.2%PE29.3x
ABT Abbott LaboratoriesUS$100.5712.7%
+US$19.7b		-20.1%PE32.4x
ABBV AbbVieUS$253.303.8%
+US$16.2b		32.9%PE124.5x
UNH UnitedHealth GroupUS$431.313.1%
+US$11.6b		47.5%PE27.7x
MRK MerckUS$127.473.1%
+US$9.5b		51.8%PE35.2x

Latest News

NTRA
US$264.22
Natera
7D
-4.7%
1Y
91.7%
JNJ
US$255.63
Johnson & Johnson
7D
3.5%
1Y
51.2%
UNH
US$431.31
UnitedHealth Group
7D
3.1%
1Y
47.5%
Seeking Alpha • 22h

UnitedHealth: Recovery Unlikely To Be Linear - Near-Term Consolidation Risks

Summary UnitedHealth's raised premiums have worked as intended in driving the healthier membership base, as observed in the lower Medical Care Ratio and richer margins. Optum's integrated care management post-hospitalization and the accelerated adoption of their transparent pharmacy pricing underpin future recovery trends. The shareholder return prospects across share repurchases/dividends may remain resilient, aided by the potential upside to my LTPT of $521.70. UNH is reiterated as a Buy after a moderate correction to the $375s–$400s, given the overbought technical indicators and post-earnings call consolidation risks. The potential Stars rating pressure/elevated member attrition from higher premiums in 2027 suggests their lumpy recovery prospects. Read the full article on Seeking Alpha
DHR
US$179.14
Danaher
7D
-10.8%
1Y
-9.5%
BMY
US$60.76
Bristol-Myers Squibb
7D
3.5%
1Y
24.1%
LLY
US$1,163.01
Eli Lilly
7D
0.6%
1Y
45.6%
MRK
US$127.47
Merck
7D
3.1%
1Y
51.8%
ISRG
US$340.69
Intuitive Surgical
7D
-12.4%
1Y
-32.1%
Narrative Update • Jul 21

ISRG: Future Returns Will Rely On Procedure Utilization Outpacing Medtech Sector Rotation

Intuitive Surgical's updated analyst price target reflects a reset from $565.25 to $501.73, as analysts factor in slightly softer procedure growth expectations, modestly adjusted revenue growth assumptions, and a lower applied future P/E multiple despite stable to slightly higher modeled profit margins. Analyst Commentary Recent Street research on Intuitive Surgical points to a reset in expectations rather than a collapse in confidence.
MRNA
US$58.07
Moderna
7D
-15.0%
1Y
67.5%
AMGN
US$366.05
Amgen
7D
2.2%
1Y
18.4%
New Narrative • Jul 19

A transitional big-pharma giant holding a speculative premium driven by obesity hype, masking severe revenue erosion.

The "Amgen 2027 Bull Case" relies on a classic top-line fallacy: assuming that macro obesity market growth and FDA's CNPV (Commissioner’s National Priority Voucher) tailwinds will automatically trigger a re-rating. Here is the cold, data-driven reality: 1.
ABBV
US$253.30
AbbVie
7D
3.8%
1Y
32.9%
ABT
US$100.57
Abbott Laboratories
7D
12.7%
1Y
-20.1%
SYK
US$309.24
Stryker
7D
-2.3%
1Y
-22.9%
TMO
US$526.46
Thermo Fisher Scientific
7D
-1.6%
1Y
12.8%
MDLN
US$37.18
Medline
7D
-5.7%
1Y
n/a
CI
US$284.85
Cigna Group
7D
-4.4%
1Y
-6.4%