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U.S. Healthcare Sector Analysis

UpdatedJan 16, 2026
DataAggregated Company Financials
Companies1398
  • 7D-0.8%
  • 3M10.9%
  • 1Y11.8%
  • YTD1.6%

Over the last 7 days, the Healthcare industry has remained flat, although notably Johnson & Johnson gained 6.7%. As for the the longer term, the industry is up 12% over the past 12 months. 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
Fri, 16 Jan 2026US$6.6tUS$3.2tUS$136.3b27.3x48.6x2.1x
Sun, 14 Dec 2025US$6.4tUS$3.2tUS$134.0b26.3x47.8x2x
Tue, 11 Nov 2025US$6.0tUS$3.2tUS$133.4b25.4x45.1x1.9x
Thu, 09 Oct 2025US$6.0tUS$3.1tUS$137.9b24.7x43.5x1.9x
Sat, 06 Sep 2025US$5.7tUS$3.1tUS$137.6b23.1x41.5x1.8x
Mon, 04 Aug 2025US$5.4tUS$3.1tUS$126.7b22.7x42.7x1.8x
Wed, 02 Jul 2025US$5.5tUS$3.0tUS$127.5b24.4x43.1x1.8x
Fri, 30 May 2025US$5.3tUS$3.0tUS$127.3b23x41.9x1.8x
Sun, 27 Apr 2025US$5.4tUS$2.7tUS$118.5b24.9x45.6x2x
Tue, 25 Mar 2025US$5.7tUS$2.6tUS$81.8b27.1x69.9x2.2x
Thu, 20 Feb 2025US$5.8tUS$2.6tUS$82.1b26.1x70.8x2.2x
Sat, 18 Jan 2025US$5.9tUS$2.9tUS$79.0b27.7x74.5x2x
Mon, 16 Dec 2024US$5.9tUS$2.9tUS$77.7b28.3x76x2x
Wed, 13 Nov 2024US$6.3tUS$2.9tUS$76.7b28.4x82.3x2.2x
Fri, 11 Oct 2024US$6.2tUS$2.8tUS$60.0b29.5x103.3x2.2x
Sun, 08 Sep 2024US$6.2tUS$2.8tUS$60.4b30.5x102.3x2.2x
Tue, 06 Aug 2024US$6.4tUS$2.9tUS$64.1b30.1x99.1x2.2x
Thu, 04 Jul 2024US$6.1tUS$2.8tUS$62.3b29.6x97.5x2.2x
Sat, 01 Jun 2024US$6.0tUS$2.8tUS$64.0b29.9x94.1x2.1x
Mon, 29 Apr 2024US$6.0tUS$2.8tUS$68.3b31.5x87.7x2.1x
Wed, 27 Mar 2024US$6.2tUS$2.8tUS$82.3b31.6x75.6x2.2x
Fri, 23 Feb 2024US$6.2tUS$2.8tUS$86.8b30.7x71.8x2.2x
Sun, 21 Jan 2024US$6.3tUS$2.8tUS$90.8b32.4x69.4x2.2x
Tue, 19 Dec 2023US$6.1tUS$2.8tUS$91.5b32.1x66.5x2.2x
Thu, 16 Nov 2023US$5.8tUS$2.8tUS$90.9b28x63.5x2.1x
Sat, 14 Oct 2023US$5.9tUS$2.8tUS$98.8b25.7x59.4x2.1x
Mon, 11 Sep 2023US$6.1tUS$2.8tUS$98.6b27.5x61.8x2.2x
Wed, 09 Aug 2023US$6.2tUS$2.8tUS$99.3b28.1x62.3x2.2x
Fri, 07 Jul 2023US$5.9tUS$2.7tUS$110.3b25.9x53.6x2.2x
Sun, 04 Jun 2023US$6.0tUS$2.7tUS$110.4b25.2x53.9x2.2x
Tue, 02 May 2023US$6.0tUS$2.5tUS$118.4b24.9x50.8x2.4x
Thu, 30 Mar 2023US$5.7tUS$2.5tUS$123.7b23.6x45.9x2.3x
Sat, 25 Feb 2023US$5.7tUS$2.5tUS$123.7b24.4x46.4x2.3x
Mon, 23 Jan 2023US$6.0tUS$2.5tUS$135.9b23.3x44.2x2.4x
Price to Earnings Ratio

44.2x


Total Market Cap: US$6.0tTotal Earnings: US$135.9bTotal Revenue: US$2.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Healthcare Sector Price to Earnings3Y Average 65.1x202420252026
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 48.6x which is lower than its 3-year average PE of 65.1x.
  • 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 9.1% 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 Market0.31%
Healthcare-0.84%
Life Sciences1.76%
Healthcare Services-0.16%
Pharma-0.61%
Biotech-0.78%
Medical Equipment-2.64%
Healthtech-7.24%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.7x.
    • Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings decline of 0.2% 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 56% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 13% 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$219.576.7%
+US$33.3b		48.6%PE21.1x
TMO Thermo Fisher ScientificUS$624.653.0%
+US$6.8b		11.2%PE35.7x
COR CencoraUS$355.355.8%
+US$3.8b		47.5%PE44.4x
MCK McKessonUS$844.133.6%
+US$3.6b		41.8%PE25.8x
DHR DanaherUS$239.892.1%
+US$3.5b		-0.8%PE48.4x

Latest News

JNJ
US$219.57
Johnson & Johnson
7D
6.7%
1Y
48.6%
PFE
US$25.89
Pfizer
7D
2.4%
1Y
-2.3%
BSX
US$90.03
Boston Scientific
7D
-8.5%
1Y
-8.3%
LLY
US$1,032.97
Eli Lilly
7D
-4.8%
1Y
36.3%
ISRG
US$541.34
Intuitive Surgical
7D
-7.5%
1Y
-7.3%
RVMD
US$123.27
Revolution Medicines
7D
14.8%
1Y
208.9%
UNH
US$338.96
UnitedHealth Group
7D
-2.3%
1Y
-33.6%

UnitedHealth Group (UNH): Scale, Access, and the Legal Realities of Healthcare

UnitedHealth Group (NYSE: UNH) sits at the center of the U.S. healthcare system. As both a leading insurer and a growing healthcare services provider through Optum, the company touches nearly every stage of patient care—from coverage decisions to clinical delivery and data analytics.
TMO
US$624.65
Thermo Fisher Scientific
7D
3.0%
1Y
11.2%
MCK
US$844.13
McKesson
7D
3.6%
1Y
41.8%

MCK: North American Pharma Strength Will Support FY26 Core AOI Framework

Narrative Update: McKesson Analysts have lifted their McKesson price targets toward a range of about $900 to $1,000, citing solid North American Pharma momentum, modeled core AOI growth of around 7% for FY26, and a robust demand backdrop reflected in peers' recent results. Analyst Commentary Recent research updates reflect a more constructive stance on McKesson, with higher price targets tied to underlying business trends and peer readthroughs rather than short term trading factors.
CAH
US$213.46
Cardinal Health
7D
5.4%
1Y
68.0%

CAH: Specialty Expansion And Policy Shifts Will Shape Future Risk Reward Balance

Analysts have nudged their price targets on Cardinal Health higher, reflected in our fair value estimate moving from $216.60 to $222.20. They highlight strong core Pharma execution, improving margins, and growing confidence in the specialty build out and Solaris driven earnings outlook.
COR
US$355.35
Cencora
7D
5.8%
1Y
47.5%

COR: Global 3PL Buildout And Higher Dividend Will Support Long-Term Upside

Analysts have nudged their price target on Cencora higher to about $388, citing slightly lower modeled revenue growth, a modestly stronger profit margin, and a small uptick in assumed future P/E as key drivers of the updated view. What's in the News Cencora announced investments to expand its third party logistics capabilities in the United States and Europe, including broader specialty logistics services for pharmaceutical companies worldwide.
REGN
US$741.92
Regeneron Pharmaceuticals
7D
-7.4%
1Y
7.0%

REGN: Core Franchises And Pipeline Will Support Balanced Upside And Concentration Risks

Analysts have raised their fair value estimate for Regeneron Pharmaceuticals from about $781 to roughly $821. This reflects updated price targets that reference a slightly lower discount rate, modestly adjusted revenue growth assumptions, a small uptick in expected profit margins, and a higher future P/E multiple supported by recent bullish research calls from several major firms.
VRTX
US$438.92
Vertex Pharmaceuticals
7D
-6.5%
1Y
5.3%

VRTX: CF Durability And Kidney Pipeline Data Will Define Next Phase

Analysts have lifted their Vertex Pharmaceuticals fair value estimate by about US$11 to US$496.16, reflecting updated assumptions on revenue growth, margins and future P/E, as recent research highlights confidence in the durability of its cystic fibrosis franchise and potential upside from its broader pipeline. Analyst Commentary Recent Street research around Vertex Pharmaceuticals points to a generally constructive view, with most commentary focusing on the durability of the cystic fibrosis franchise, the breadth of the pipeline and how these factors feed into valuation targets and rating changes.
ABBV
US$216.75
AbbVie
7D
-3.3%
1Y
24.8%

ABBV: Future Returns Will Depend On Post-Humira Immunology And Pipeline Execution

Analysts have trimmed their AbbVie fair value estimate by about $0.10 per share to roughly $244.56. This reflects a mix of slightly higher risk assumptions, modestly adjusted revenue and margin expectations, and a more balanced set of views after recent downgrades and price target changes that suggest outperformance is already well reflected in the current share price.
RGC
US$30.06
Regencell Bioscience Holdings
7D
-27.4%
1Y
23,598.8%
DHR
US$239.89
Danaher
7D
2.1%
1Y
-0.8%

DHR: Share Repurchases And Diagnostics Resilience Will Support Premium Multiple

Analysts have made a modest upward adjustment to their fair value estimate for Danaher to about US$259 from about US$258, reflecting slightly higher assumed profit margins and P/E, even as they highlight tempered expectations for 2025 and 2026 growth, ongoing uncertainty in China, and questions around how durable diagnostics demand will be. Analyst Commentary Analysts are split on Danaher, with some focusing on the valuation premium and others on the company’s ability to eventually reconnect with its historical growth profile.