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U.S. Healthcare Sector Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies1396
  • 7D2.2%
  • 3M12.2%
  • 1Y12.0%
  • YTD2.1%

In the last week, the Healthcare industry is up 2.2%, with Eli Lilly up 2.1%. In the same time, Madrigal Pharmaceuticals was down 13%. This takes the industry's 12 month performance to a gain of 12%. 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
Mon, 12 Jan 2026US$6.6tUS$3.2tUS$136.3b26.5x48.5x2.1x
Wed, 10 Dec 2025US$6.2tUS$3.2tUS$133.9b25.5x46.7x2x
Fri, 07 Nov 2025US$6.0tUS$3.2tUS$131.7b24.3x45.6x1.9x
Sun, 05 Oct 2025US$6.0tUS$3.1tUS$137.8b24.7x43.8x2x
Tue, 02 Sep 2025US$5.7tUS$3.1tUS$137.5b23.3x41.4x1.8x
Thu, 31 Jul 2025US$5.5tUS$3.1tUS$126.6b24.1x43.5x1.8x
Sat, 28 Jun 2025US$5.5tUS$3.0tUS$127.5b24.8x43.1x1.8x
Mon, 26 May 2025US$5.3tUS$3.0tUS$126.9b22.6x41.7x1.7x
Wed, 23 Apr 2025US$5.2tUS$2.7tUS$97.7b24.5x53x2x
Fri, 21 Mar 2025US$5.7tUS$2.6tUS$81.5b26.8x70.3x2.2x
Sun, 16 Feb 2025US$5.8tUS$2.6tUS$82.1b26.8x70.8x2.2x
Tue, 14 Jan 2025US$5.8tUS$2.9tUS$78.9b28.2x74x2x
Thu, 12 Dec 2024US$6.0tUS$2.9tUS$77.5b28.1x78x2.1x
Sat, 09 Nov 2024US$6.2tUS$2.9tUS$75.9b28.3x82.1x2.1x
Mon, 07 Oct 2024US$6.2tUS$2.8tUS$60.0b29.7x102.5x2.2x
Wed, 04 Sep 2024US$6.3tUS$2.8tUS$60.4b31.1x104.9x2.2x
Fri, 02 Aug 2024US$6.4tUS$2.9tUS$68.5b32.9x92.7x2.2x
Sun, 30 Jun 2024US$6.2tUS$2.8tUS$62.2b30.5x99.3x2.2x
Tue, 28 May 2024US$6.1tUS$2.8tUS$63.7b30.9x96.4x2.2x
Thu, 25 Apr 2024US$6.0tUS$2.8tUS$84.1b31.3x71.8x2.2x
Sat, 23 Mar 2024US$6.2tUS$2.8tUS$82.1b31.8x75.9x2.2x
Mon, 19 Feb 2024US$6.3tUS$2.8tUS$82.4b30.1x75.9x2.2x
Wed, 17 Jan 2024US$6.4tUS$2.8tUS$90.8b32.2x70.2x2.3x
Fri, 15 Dec 2023US$6.1tUS$2.8tUS$91.5b32.5x67.1x2.2x
Sun, 12 Nov 2023US$5.7tUS$2.8tUS$91.0b26.5x62.1x2x
Tue, 10 Oct 2023US$5.9tUS$2.8tUS$98.3b26.1x59.9x2.1x
Thu, 07 Sep 2023US$6.0tUS$2.8tUS$98.6b27.5x61x2.2x
Sat, 05 Aug 2023US$6.1tUS$2.8tUS$100.7b28.8x60.6x2.2x
Mon, 03 Jul 2023US$6.1tUS$2.7tUS$110.3b26.6x54.9x2.2x
Wed, 31 May 2023US$5.8tUS$2.7tUS$110.5b24.5x52.2x2.1x
Fri, 28 Apr 2023US$5.9tUS$2.5tUS$123.1b24.4x47.9x2.4x
Sun, 26 Mar 2023US$5.7tUS$2.5tUS$124.1b23.6x45.7x2.3x
Tue, 21 Feb 2023US$5.9tUS$2.5tUS$131.2b24.7x45.2x2.4x
Thu, 19 Jan 2023US$6.0tUS$2.5tUS$135.9b22.6x43.8x2.4x
Price to Earnings Ratio

43.8x


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 48.5x 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 Market1.24%
Healthcare2.17%
Healthtech6.48%
Medical Equipment2.76%
Life Sciences2.42%
Pharma2.33%
Biotech2.31%
Healthcare Services0.24%
Industry PE
  • Investors are most optimistic about the Life Sciences industry, which is trading close to its 3-year average PE ratio of 59.8x.
    • Analysts are expecting annual earnings growth of 17.4%, 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
LLY Eli LillyUS$1.06k2.1%
+US$19.7b		33.4%PE51.7x
RGC Regencell Bioscience HoldingsUS$45.7969.3%
+US$9.3b		34,018.2%PB4658.7x
ISRG Intuitive SurgicalUS$586.244.3%
+US$8.6b		7.1%PE75.7x
RVMD Revolution MedicinesUS$118.6451.5%
+US$7.8b		178.7%PB14.4x
MRK MerckUS$110.532.9%
+US$7.7b		9.5%PE14.4x

Latest News

LLY
US$1,063.56
Eli Lilly
7D
2.1%
1Y
33.4%

LLY: GLP-1 Pricing Deals Will Pressure Obesity Margins Going Forward

Analysts lifted their fair value estimate for Eli Lilly from US$650 to US$770, citing higher assumed profit margins, a slightly higher discount rate, updated expectations for revenue growth and future P/E, and continued Street support related to the obesity franchise, GLP-1 pricing agreements, and pipeline catalysts. Analyst Commentary Recent Street research around Eli Lilly has been dominated by views on obesity drugs, pricing agreements with the U.S. government, and the company’s expanding pipeline.
ISRG
US$586.24
Intuitive Surgical
7D
4.3%
1Y
7.1%

ISRG: Dv5 Platform Rollout And Rising Procedure Volumes Will Drive 2026 Upside

Analysts have lifted their fair value estimate for Intuitive Surgical to US$740 from US$675, reflecting higher expected profit margins and a somewhat lower future P/E multiple. This change is supported by recent target increases tied to the da Vinci 5 rollout, stronger procedure trends and a more constructive view on healthcare into 2026.
HCA
US$472.07
HCA Healthcare
7D
-1.2%
1Y
53.2%

HCA: Future Returns Will Rely On Supplemental Payments And Policy Stability

Analysts have nudged their fair value estimate for HCA Healthcare higher to $485.85 from $481.95, reflecting refreshed price targets that lean on recent Q3 strength, higher expected margins and supplemental payment support, while still flagging legislative and reimbursement risks. Analyst Commentary Recent Street research on HCA Healthcare shows a clear tilt toward higher valuation frameworks after Q3, with most firms raising price targets and linking their moves to margin strength, supplemental payment support and updated longer term assumptions.
COR
US$335.69
Cencora
7D
-1.5%
1Y
42.2%

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.
RVMD
US$118.64
Revolution Medicines
7D
50.1%
1Y
184.0%
MRK
US$110.53
Merck
7D
2.9%
1Y
9.5%

MRK: Cidara Flu Deal Will Likely Highlight Overstated Long Term Hopes

Narrative Update The analyst price target for Merck has moved higher to a range of about $105 to $135. Analysts point to sector re-ratings, recent upgrades to Outperform, and confidence in the company’s product pipeline and deal activity as key drivers of their updated views.
VRTX
US$463.86
Vertex Pharmaceuticals
7D
3.4%
1Y
12.2%

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.
BMY
US$55.86
Bristol-Myers Squibb
7D
5.3%
1Y
0.9%

BMY: Sector Tailwinds And Pipeline Milestones Will Shape Next Share Rerating

Analysts have nudged their price targets for Bristol Myers Squibb higher, with moves such as UBS shifting to a Buy rating with a US$65 target from US$46 and Citi lifting its target to US$53 from US$45. This reflects growing confidence tied to sector tailwinds, improving deal activity, and a refreshed view of the company’s valuation and earnings power.
ICLR
US$181.38
ICON
7D
-8.2%
1Y
-16.8%
SYK
US$367.54
Stryker
7D
5.4%
1Y
1.8%

SYK: Orthopedics Strength And Robotics Adoption Will Support Long-Term Upside

Narrative Update: Stryker The analyst price target for Stryker has been adjusted slightly lower to reflect a fair value estimate of about $427.22. Analysts point to mixed but generally solid recent research that highlights compressed forward multiples, updated targets in the $390 to $453 range, and ongoing views of Stryker as a high quality large cap MedTech name, with attractive entry points and healthy procedure and CapEx trends into 2026.
CI
US$278.95
Cigna Group
7D
-1.8%
1Y
-1.2%

CI: Massive Share Buyback And Clinic Expansion Will Support Future Earnings Upside

Analysts have slightly reduced their price target for Cigna Group, trimming fair value by about $0.69 to $325.57 as they factor in a more moderate revenue growth outlook, along with a small improvement in expected profit margins and future P/E assumptions. What's in the News Hankook Tire America Corp.
ZBIO
US$16.08
Zenas BioPharma
7D
-53.4%
1Y
98.0%
CAH
US$201.11
Cardinal Health
7D
-2.1%
1Y
66.4%
RGC
US$45.79
Regencell Bioscience Holdings
7D
122.9%
1Y
35,894.2%
MDGL
US$514.06
Madrigal Pharmaceuticals
7D
-12.6%
1Y
69.3%

MDGL: Elevated Expectations For Cirrhosis Opportunity Will Face Heightened Competitive Pressures

Madrigal Pharmaceuticals' analyst price target has risen sharply from approximately $312 to $502 per share, as analysts factor in stronger long term profitability and higher penetration assumptions for Rezdiffra across F2-F3 and F4c MASH populations, despite moderating top line growth expectations and a modestly higher discount rate. Analyst Commentary Recent Street research reflects a broadly constructive outlook on Madrigal Pharmaceuticals, with multiple firms lifting price targets in response to stronger than expected Rezdiffra uptake and expanding commercial visibility in both F2 F3 and compensated F4c MASH populations.
MCK
US$816.06
McKesson
7D
-1.1%
1Y
39.5%