Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Healthcare Sector Analysis

UpdatedMay 11, 2026
DataAggregated Company Financials
Companies1407
  • 7D-0.5%
  • 3M-5.8%
  • 1Y12.6%
  • YTD-5.9%

Over the last 7 days, the Healthcare industry has remained flat, although notably Eli Lilly gained 4.3%. The past year has been better, since the industry has gained 13% in that time. 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
Mon, 11 May 2026US$6.2tUS$3.3tUS$123.7b23x49.8x1.9x
Wed, 08 Apr 2026US$6.2tUS$3.3tUS$127.3b22.7x48.4x1.9x
Fri, 06 Mar 2026US$6.5tUS$3.3tUS$126.2b25.4x51.7x2x
Sun, 01 Feb 2026US$6.5tUS$3.2tUS$126.6b27.8x51.2x2x
Tue, 30 Dec 2025US$6.5tUS$3.2tUS$134.8b26.6x48.5x2x
Thu, 27 Nov 2025US$6.6tUS$3.2tUS$133.5b26.7x49.1x2.1x
Sat, 25 Oct 2025US$6.1tUS$3.1tUS$140.4b25.8x43.2x2x
Mon, 22 Sep 2025US$5.7tUS$3.1tUS$137.6b23.9x41.4x1.8x
Wed, 20 Aug 2025US$5.6tUS$3.1tUS$137.0b23.4x41.2x1.8x
Fri, 18 Jul 2025US$5.5tUS$3.0tUS$128.7b22.9x42.8x1.8x
Sun, 15 Jun 2025US$5.5tUS$3.0tUS$127.4b23.5x43.5x1.8x
Tue, 13 May 2025US$5.4tUS$3.0tUS$126.5b24.4x42.5x1.8x
Thu, 10 Apr 2025US$5.1tUS$2.6tUS$81.8b25.3x62.7x1.9x
Sat, 08 Mar 2025US$5.8tUS$2.6tUS$79.0b27.5x73.9x2.2x
Mon, 03 Feb 2025US$6.1tUS$2.9tUS$85.1b27.8x72x2.1x
Wed, 01 Jan 2025US$5.8tUS$2.9tUS$79.4b27.5x72.5x2x
Fri, 29 Nov 2024US$6.2tUS$2.9tUS$77.3b28.5x79.6x2.1x
Sun, 27 Oct 2024US$6.0tUS$2.8tUS$59.1b29.1x102.2x2.1x
Tue, 24 Sep 2024US$6.3tUS$2.8tUS$60.1b30.1x104.6x2.2x
Thu, 22 Aug 2024US$6.2tUS$2.8tUS$56.2b32x110.6x2.2x
Sat, 20 Jul 2024US$6.3tUS$2.8tUS$60.8b31.7x103.2x2.2x
Mon, 17 Jun 2024US$6.2tUS$2.8tUS$62.5b30x98.9x2.2x
Wed, 15 May 2024US$6.1tUS$2.8tUS$63.7b30.8x96x2.2x
Fri, 12 Apr 2024US$6.1tUS$2.8tUS$85.4b32.1x71.4x2.2x
Sun, 10 Mar 2024US$6.3tUS$2.8tUS$85.3b32.5x73.8x2.3x
Tue, 06 Feb 2024US$6.2tUS$2.8tUS$83.9b31.4x74.5x2.2x
Thu, 04 Jan 2024US$6.3tUS$2.8tUS$90.2b31.6x69.7x2.2x
Sat, 02 Dec 2023US$5.9tUS$2.8tUS$91.4b28.8x64.5x2.1x
Mon, 30 Oct 2023US$5.5tUS$2.8tUS$99.5b24.1x55.6x2x
Wed, 27 Sep 2023US$5.9tUS$2.8tUS$98.5b27.4x59.8x2.1x
Fri, 25 Aug 2023US$6.1tUS$2.8tUS$99.0b27.8x61.3x2.2x
Sun, 23 Jul 2023US$6.2tUS$2.7tUS$110.9b26.9x55.5x2.2x
Tue, 20 Jun 2023US$6.0tUS$2.7tUS$109.9b26.4x54.8x2.2x
Thu, 18 May 2023US$6.0tUS$2.7tUS$111.0b23.9x53.6x2.2x
Price to Earnings Ratio

53.6x


Total Market Cap: US$6.0tTotal Earnings: US$111.0bTotal 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 49.8x which is lower than its 3-year average PE of 65.5x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 3.7% 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 Market2.25%
Healthcare-0.46%
Healthcare Services2.72%
Life Sciences1.88%
Biotech1.31%
Healthtech-0.13%
Pharma-1.91%
Medical Equipment-3.34%
Industry PE
  • Investors are most optimistic about the Medical Equipment industry even though it's trading below its 3-year average PE ratio of 54.9x.
    • Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings growth of 9.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Biotech industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% 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
CVS CVS HealthUS$90.5510.4%
+US$10.4b		39.7%PE39.4x
UNH UnitedHealth GroupUS$379.982.5%
+US$8.4b		0.3%PE28.7x
WAT WatersUS$355.1317.6%
+US$5.2b		-3.1%PE77.5x
HUM HumanaUS$274.9615.5%
+US$4.4b		8.7%PE29.2x
AMGN AmgenUS$331.702.4%
+US$4.2b		20.7%PE23x

Latest News

ABBV
US$201.55
AbbVie
7D
-3.2%
1Y
6.0%
Seeking Alpha • 3h

AbbVie Q1: Skyrizi Delivers, Here's What Skeptics Are Missing

Summary AbbVie (ABBV) delivered strong Q1 2026 results, with $15B revenue (+12.4% YoY) and Skyrizi sales up 30.9%, prompting raised EPS guidance. Despite analyst concerns over new oral competitors like Icotyde, Skyrizi maintains a clear efficacy advantage and expanding indications, supporting robust growth. ABBV is trading at 14.2x 2026 EPS with a 0.84x PEG, offering compelling value amid 17% projected earnings growth and a $250/share price target. Risks include pricing pressures, high product concentration, and pipeline execution, but current market skepticism creates a classic wall of worry opportunity. Read the full article on Seeking Alpha
ZTS
US$82.83
Zoetis
7D
-26.5%
1Y
-48.8%
MCK
US$736.09
McKesson
7D
-8.9%
1Y
7.1%
Analysis Article • 5h

McKesson Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

McKesson Corporation ( NYSE:MCK ) shareholders are probably feeling a little disappointed, since its shares fell 8.9...
COR
US$261.08
Cencora
7D
-14.0%
1Y
-6.2%
HUM
US$274.96
Humana
7D
15.5%
1Y
8.7%
CVS
US$90.55
CVS Health
7D
10.4%
1Y
39.7%
LLY
US$948.45
Eli Lilly
7D
-2.0%
1Y
25.5%
Seeking Alpha • May 10

Eli Lilly: 'Strong Buy' Raised Revenue Guidance By $2 Billion For 2026 And Label Expansions

Summary Eli Lilly remains a 'strong buy' as I see robust revenue growth across obesity, diabetes, immunology, and oncology franchises. LLY’s MOUNJARO and ZEPBOUND delivered Q1 2026 revenues of $8.66B [+125%] and $4.16B [+80%] respectively, driving a 56% YoY total revenue increase. Pipeline momentum is strong: FOUNDAYO launched, Retatrutide and Eloralintide advanced, and EBGLYSS/JAYPIRCA show double-digit growth with label expansion catalysts ahead. I maintain my 'strong buy' rating, reinforced by a $2B increase of full-year 2026 revenue guidance and multiple near-term clinical/regulatory milestones expected. Read the full article on Seeking Alpha
INSM
US$101.35
Insmed
7D
-27.6%
1Y
49.6%
ABT
US$84.32
Abbott Laboratories
7D
-3.7%
1Y
-36.1%
Seeking Alpha • May 09

Abbott Laboratories Is On Sale, Don't Overlook It

Summary Abbott Laboratories is trading at a 27% discount to fair value, offering a compelling entry point for long-term investors. ABT's Medical Devices and Diagnostics segments drive robust growth, with the Exact Sciences acquisition adding market-leading oncology diagnostics. Consensus forecasts 9.1% annual EPS growth through 2028, supporting continued 7%-8% dividend growth and a 54-year streak. Litigation over infant formula and Exact Sciences' integration pose risks, but ABT's fundamentals and earnings growth underpin a projected 45% upside by 2027. Read the full article on Seeking Alpha
WAT
US$355.13
Waters
7D
17.6%
1Y
-3.1%
AMGN
US$331.70
Amgen
7D
2.4%
1Y
20.7%
IQV
US$178.71
IQVIA Holdings
7D
11.0%
1Y
14.5%
Analysis Article • May 08

IQVIA Holdings Inc. (NYSE:IQV) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a pretty great week for IQVIA Holdings Inc. ( NYSE:IQV ) shareholders, with its shares surging 13% to US$179...
DVA
US$198.65
DaVita
7D
28.9%
1Y
37.5%
JNJ
US$221.32
Johnson & Johnson
7D
-1.3%
1Y
43.6%
UNH
US$379.98
UnitedHealth Group
7D
2.5%
1Y
0.3%
MRNA
US$54.35
Moderna
7D
14.9%
1Y
111.5%